- June 2002
- Call centre dreamrun hits payment recovery roadblock
Is the call centre bubble set to burst? Much of the evidence seems to point in that direction. Consider this: several overseas business visits by prominent call centre heads today are not for signing new deals but to recover payments from clients.While no was willing to go on record, some players did confirm the trend. “The phenomenon is not restricted to India, we know of cases of centres in geographies like the Caribbean and Mexico where millions of dollars are due to centres largely for outbound services,” says Global Telesystems eCMS president Ashvani Srivastava.
- Synergies between IT services and ITES pay off
The BPO/ITES strategy of the information technology (IT) service companies seems to be paying off. If the BPO ventures of IT powerhouses —- Infosys and MphasiS —- are anything to go by, the opportunity for strategic upsell and cross sell between the IT and the IT enabled businesses is no longer just a one-off thing.Companies are now reworking their strategies to use their resources to target and get more work from existing clients rather than target fresh ones. And with the reference mechanism working like a well-oiled machine, the cycle time (which usually is anywhere between 6-9 months for getting a BPO deal) is actually seeing traction is less than three months.
- Intelenet plans 2000-seat facility at Mindspace
Intelenet, the 50:50 Business Process Outsourcing (BPO) joint Venture between Tata Consultancy Services (TCS) and HDFC, has rented 200,000 square feet of office space at Mindspace in suburban Mumbai, to service its existing clients Household International and UK-based Standard Life. The space will also cater to future growth in business.The company is targeting revenues of Rs 50 crore this financial year and expects to be in outbound, inbound and BPO services by the year-end.
- Spectramind plans call centre in Kerala
Call centre major Spectramind, the largest after GE, has big plans for India. The company will enhance its seating capacitites in the next two to three years by setting up call centres across the country.As part of this expansion strategy, Spectramind is expected to set up a 1000-seat call centre in Kerala in the next few months. “Talks with the state government are in an advanced stage and we hope to finalise the deal soon,” Mr Raman Roy, president and CEO, Spectramind told eFE.
- ChrysCap to invest $7 Million for BPO venture
The $200 million venture capital fund ChrysCapital is rooting for IT-enabled services (ITES), with its third investment in the segment in the pipeline. After two investment rounds in ITES companies like Spectramind and Global Vantage, ChrysCapital is now likely to invest upto $7 million in a business process outsourcing (BPO) company called AcFin.
- Call centres rethink contingency strategies
War clouds, which till yesterday were looming large over the country, posed a major threat to the 24X7 IT-enabled services (ITES) industry. The war-like situation (which is now de-escalating), not only caught the budding Indian contact centre businesses unaware but also made them sit up and rethink their contingency strategies.According to QAI, an average contact centre with 100 seats with a billing rate of $7 per hour, will run into losses of nearly Rs 5.5 crore per annum if the country goes to war.
- Govt to partner with IT industry on operation back-office
The Indian government will do all it can to enable the country to become the back office destination of the world. This assurance was given by the Union ICT Secretary Mr Rajeev Ratna Shah at the concluding session of the two-day Nasscom summit in Hyderabad on Tuesday.“The Union government will discuss with Nasscom and consider all issues positively to make India the back office destination of rest of the world in the near future,” Union IT secretary Rajeev Ratna Shah said.
- NASSCOM-McKinsey ITES Strategy Summit gets under way
The two-day Indian information technology (IT) and Information technology enabled services (ITES) strategy summit being organised by the National Association of Software and Service Companies (Nasscom) in conjunction with international consulting major McKinsey is expected to help the industry chart the road ahead. The summit opens on Monday at Hyderabad.“With the dotcom bust and the slowdown in the US economy, the Indian software industry has faced numerous challenges in the last one year. While we believe the long-term fundamentals of the industry are strong, we have re-engaged the services of McKinsey to help the industry re-strategise its growth path,” said a Nasscom official.
- IT-enabled services market — Unlimited opportunities lie ahead
THE information technology enabled services (ITeSs) market is emerging as a key business opportunity for the export-driven IT software and services segment. Nasscom (National Association of Software and Service Companies) projects global opportunity for ITeSs – or remote processing services – at $611.4 billion by 2005. In a short span, ITeSs in India have grown from Rs 4,100 crore in 1999-2000 to nearly Rs 7,100 crore ($1.5 billion) in 2001-02.The ITeS sector currently employs around 107,000 personnel. According to a Nascom-McKinsey study, the ITeS segment is likely to generate over 1.1 million jobs in India by 2008. India is projected to attain the status of the `service process centre’ of the world, capturing 38 per cent of the market share. A study by The Economist (`Back office of the world’) states that costs of up to 40-50 per cent can be saved depending on the country to which the service is outsourced and the process that is outsourced.
- War talk: IT, ITES players feel the heat
The impending threat of war in the subcontinent has resulted in a temporary setback for one of the country’s fastest growing sectors – Business Process Outsourcing (BPO) – which is growing at an annual rate of 60 to 70 per cent.The sector which has seen the mushrooming of several players over the past year is totally dependant on overseas clients and is witnessing a slowdown in business at the moment.
- ADP Shifts BPO Projects To Indian Subsidiary
In a strategic move, the $7 billion financial transaction solutions provider Automatic Data Processing (ADP) Inc, has decided to shift its business process outsourcing (BPO) projects to its Indian subsidiary — Wilco International System.To begin with, ADP recently shifted some of its projects to the Wilco centre here including brokerage and employee services processing, Wilco International Systems managing director Sakthi Sagar told eFE. The ADP’s decision is based on the availability of cost-effective labour, quality services and higher productivity, he added.
- AOL To Open Mega Call Centre In B’lore
The Indian BPO and call centre market is poised to add yet another big name to its growing list with media major America Online (AOL) set to begin operations of its mega call centre in Bangalore. The centre is likely to house more than 3,000 people and will handle all back office and customer relationship management for AOL’s requirements, informed sources said.AOL had just concluded a deal with the International Tech Park in Whitefield near Bangalore to take up full three floors of office space to house the facility, sources said. This is believed to be one of the largest real estate occupation deals in the past weeks.
- MsourcE Targets Small Takeovers
With ICICI’s strategic buyout of the Bangalore-based call centre, CustomerAsset, reaffirming the value proposition of the BPO business space, other big fish in the market also seem to be going all out to scout for smaller buys.According to market sources, BPO player MsourcE, the subsidiary of IT player Mphasis-BFL, is believed to be actively scouting for small acquisition targets in the BPO and call centre business. Also, the company has crossed the 1,000 employee-mark across its offices in Bangalore and Pune making it one of the dominant players in the call center/BPO market.
- Call centre dreamrun hits payment recovery roadblock
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