Ever since the advent of BPO, there has been a common perception that the voice-based segment helps in maximum revenue generation for a BPO company. However, WNS, outsourcing service provider, has proved otherwise clocking three-quarters of its revenue in non-voice based services with just a quarter attributed to voice-based services.
According to Keshav Murugesh, CEO of WNS, the company has aimed at more emphasis on BPM (business process management) rather than BPO with the intention of serving as a one-stop-shop catering to all clients.
Focus on non-linear portion of business and newer verticals
Murugesh said that the company became one of the leaders in the non-voice segment through its focus on providing services so that companies would prefer having one partner globally. WNS will be focusing more on non-linear portion of business where there is no link between headcount and revenues. This is because more nations are opening their doors to outsourcing and industries are opening up new verticals.
WNS has made a strong global presence over the years and it is increasing their emphasis on new verticals. Shipping and logistics, consultancy, healthcare etc. are the verticals that WNS is delving into, implementing outsourcing services in these verticals via organic growth. With organic growth as the main driver, the company hopes to make significant progress in these verticals. However, the company has not ruled out opportunities for inorganic growth as well.
WNS saw a year on year growth of 16 percent in quarter three in which around 12 percent was contributed by organic growth. Of this WNS revenue, 38 percent came from the non-linear portion of business. The focus on end-to-end services in outsourcing that the company is practicing is being used to alter perceptions of people, stakeholders and government that BPM is to be the subject of focus rather than mere BPO.
Leveraging technology for outsourcing
Murugesh stated that clients wanted price arbitrage a decade ago as compared to the leverage on technology-driven vertical models that are being emphasized in the last couple of years. 20 percent of WNS revenue is derived from non-voice based services on various platforms. Of this, 15 percent is obtained right from company-owned intellectual properties.
The company seeks to build on this strong base and intends to continue on the cumulative growth spree that it has embarked on a few years back. It has been claimed that the cumulative annual growth rate of WNS has been thrice or four times that of BPM growth rate globally in the past four years.