Friday, March 7

Satyam BPO mining niche core processes

Satyam BPO, the integrated business process outsourcing arm of Satyam Computer Services, has evolved into addressing integrated process and transformational deals focussing on core business. Valuations are attractive and the company continues to be engaged in discussions for potential buy-out candidates, though there is no firm deadline or deal size mandate, according to Mr Roddam Venkatesh, Chief Executive Officer of Satyam BPO (earlier Nipuna). Mr. Venkatesh told Business Line that the company had made big strides in the last four years and is now growing at a rate of about 60 per cent this fiscal and has provided a revenue guidance of $61 million.

“Being part of a $2 billion technology solutions provider, we have significant advantages over a pure BPO company. These include strong dispersed geographical presence and balance sheet. This has also helped the company graduate to the next stage of outsourcing, that is to address core processes of companies,” he said.

Scaling up

Providing the example of how the company addresses insurance claims processing, end-to-end, and procurement services for automotive company, and mapping solutions, Mr Venkatesh said this reflects the next phase of BPO business that the company is addressing. The company now employs about 3,700 people across Hyderabad, Bangalore, Chennai, and in the client sites in the US, UK and Belgium. The focus now is on doing more with the same numbers, a model that has changed from earlier number addition approach, he explained.

Evaluating options

The company has about 30 clients across different business segments spread across the globe. Lately, some of the businesses are seen to be questioning some of the outsourcing models. Some either prefer a local centre option or a near shore business model. As a part of a company, which has over 59 centres, there is greater flexibility, he said. As a part of the overseas business interest driven by some of the clients, the company is evaluating operations in Latin America, West Asia and Far East, he explained. Asked if the deal sizes are getting bigger, Mr Venkatesh said that the models are changing rapidly and it has become difficult to quantify the nature of work. Therefore, it all depends on the nature of processes and what is being offered to customers.

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