: 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.
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
Infosys for example. Its one-quarter-old BPM venture —- Progeon
—- has already signed sizeable deals from two US-based customers
(one being speciality finance firm Green Point Mortgage) both of
which have been clients of the parent company. Green Point, which
came on board Infy in June 2001 has handed out a back office processing
contract worth $30 million over a five-year period —- and Progeon
board chairman Phaneesh Murthy attributes a large part of this to
a successful track record with Infy.
a whole lot of sense for us to focus our energy on tapping clients
well known to Infy. This is the big synergy that can be achieved
between the IT services and the BPO venture. Not that we will not
pursue new clients, but for the moment, efforts will be focused
on speaking to people who know us. Good references are very important
in this business," Mr Murthy said.
A 1000-people organisation, MphasiS BPO, the BPO venture of MphasiS-BFL
Ltd is expected to contribute to the largest chunk of the company’s
growth this fiscal (200 per cent growth estimated in MphasiS BPO
business). And the client equations here are again interesting.
MphasiS BPO currently has 10 active clients, five of whom were
MphasiS clients as well and outsourced work to MphasiS BPO based
on their earlier interaction. While three are stand-alone MphasiS
BPO clients, two MphasiS BPO clients also became MphasiS clients
after they began outsourcing IT projects. While this move came as
a surprise package for the company, now the strategy is to get more
of such cross/up sell to happen.
GlobalSoft has yet another dimension to add. After having been in
the infrastructure support services business for a while, the company
recently spun off the activity to form the Digital Globalsoft Technical
Support and Contact Center (TSCC) which will focus on remote infrastructure
the work for GE (one of the earliest clients for tech support) was
transferred to the new center, the company has also taken on Compaq
to remote manage its infrastructure services (an area that Compaq
had not outsourced to Digital so far). Another of its clients Cap
Gemini Ernst & Young has also signed up for the remote management
we do not function like a typical ITES business, cross sell and
upsell opportunities are a big part of any of our new initiatives.
And we are clearly seeing this trend with customers who are familiar
with us. Their confidence that we will deliever is an important
business driver," says Digital GlobalSoft head new business initiatives
this trend also seems to have caught up with those just venturing
in. Techology services provider Kshema Technologies is gearing up
for its BPO venture after having tweaked its model to focus more
on requirements of existing clients.
the company was looking at entering the higher end of the support
chain by offering technical support services. It has now instead
opted to make an entry at the lower end with other volume processing
"We spoke to a number of our clients and while they were interested
in tech support services, they were more ready to outsource back
office processes. While we will eventually do both the low end and
high end work we will begin where there is a chance to target our
existing client relationships for BPO as well," Kshema chairman
and CEO Ananth Koppar said.