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The Client

A subsidiary of a US$4 billion Indian conglomerate, the client is one of the fastest growing India-based global IT and IT-enabled services companies. Since its inception in October 2000, the company has established itself as key player in offshore outsourcing, growing at a compounded annual growth rate (CAGR) of over 85%, outpacing competition and the IT services market. Recognized by Forbes as one of the “World's Most Reputable Companies”, the company is focused on the Manufacturing, BFSI, Consumer Packaged Goods, Retail, Travel, Hospitality and Transportation verticals.

Business Context

The company entered the BPO segment in 2003 in partnership with Client Logic, one of the Top 5 BPO providers in the contact center and fulfillment industry. Buoyed by the success of the joint venture and the growth of the BPO industry, the company saw a larger opportunity in this market. While it wished to explore the partnership model further and expand its footprint in the BPO space, it also wanted an independent validation of the suitable offshore model. Prayag was commissioned to carry out a study to evaluate various offshore BPO business models and make a recommendation on ’best-fit’.

Prayag Solution

Prayag leveraged its extensive industry experience in conducting the study. The companies to be evaluated were selected on the basis of offshore model practiced – captive, partnership and third party. Scale and size of operations were also taken into consideration.

To understand how the various strategies were actually executed, the Prayag team interviewed the senior management of the selected companies. The companies were queried on various parameters such as process maturity, initial costs, data security, sourcing, and resource flexibility.

Analysis of the data collected indicated that offshoring was only successful when the model suited the specific size of the business. Research data was then used to create a framework where offshore models were mapped to business growth stages, which was then presented to the client as an input into their decision making process.

Benefits

Prayag’s research report provided the client with an objective view of the offshore BPO industry, which was needed for making a crucial business decision. The research was used by the client to subsequently validate its choice of a partnership-driven business model.

Jaya Raju, General Manager -, BPO Division of the client says, “In a first-of-its- kind exercise, Prayag has researched current users of the offshore BPO model to understand their strategies and success factors. They have provided an insightful and comprehensive analysis that is very valuable to companies looking to offshore business processes to India as well as to BPO service providers.”