India’s top outsourcing cos

The findings of Black Book of Outsourcing 2008 have not been too pleasing for the Indian IT industry. The 2008 list sees several Indian outsourcing companies failing to find their way in the Top 50 list. The list shows how Indian companies are losing their grip over the outsourcing market and also called for better delivery from Indian vendors to improve their act.

Leading Indian companies like Infosys, Hexaware, EXL Service and ICICI Firstsource failed to make the cut this year due to low client approval ratings.

Firstsource (formerly ICICI), a four-year top ranked performer fell the most of any outsourcing company to 1550 of 1690. Indian IT bellwether Infosys too fell out of the Top 50 circle to rank at 59 this year. According to the survey, most of these Indian outsourcers were deficient in their delivery levels.

However, with the losers, the Indian industry also had some winners. These companies with their consistent delivery levels and solid models continued to gratify clients across industry verticals. Here's meeting the top BPOs of India Inc.

Wipro

The first Indian company on the Black Book of Outsourcing list is Wipro. The IT major climbed a few positions to make its entry at no six.

In a year, when several Indian companies slipped ranks miserably, Wipro retained its position. According to the survey, Wipro's reverse outsourcing strategy in the US and UK has helped the company become a hot favorite among US buyers. Wipro's acquisitions are paying off and management is maximising synergies. Survey sees business transformation demands from clients propelling Wipro into a hugely successful 2009.

With over 19,000 employees, operating across nine different locations (India and Eastern Europe), Wipro BPO services include banking and capital markets, insurance, travel and hospitality, hi-tech manufacturing, telecom, healthcare sectors, finance and accounting, procurement, HR services, loyalty services and knowledge services.

Recently the tech major consolidated its entire consulting business under a single umbrella, Wipro Consulting Services. Facing tough times due to rising rupee vis-a-vis dollar and slowdown in its largest market US, Wipro reported its slowest quarterly earnings growth in the last five years as its clients cut back on technology spending.

The company is bidding for 12 contracts worth a total of $1.2 billion to help it meet its goal of becoming one of the ten largest IT companies in the world.

Satyam

Closely following its Indian rival Wipro in the list is Satyam. The fourth largest software services exporter Satyam is placed seventh in the list.

Satyam is the first company to be certified with e-sourcing capability model (eSCM) Level 5. The company recently reorganised its workforce to create almost 4,000 leadership positions, which is 8 per cent of its 50,000-strong workforce.

According to the survey, developing global archipelago of service centers makes this Indian ITO, BPO and engineering giant an annual favorite among customers.

Incidentally, Satyam is also placed at fourth position on the list of top 10 knowledge process outsourcing (KPO) vendors.

With US slowdown crimping outsourcing deals, the company reported an 18.5 per cent rise in the last quarter. The company stated that consolidated net profit for the quarter ended March rose to Rs 4.67 billion ($117 million) up from 3.94 billion a year ago.

However, the company is chasing 20 large deals in the $50 million-$100 million range to beat the slowdown tremors.

TCS

India's biggest software services exporter, Tata Consultancy Services ranks at 15th position in the Black Book Outsourcing list.

The survey states that TCS establishing a service center in Ohio helped it gratify major US clients. The over 100,000 employees and $4.3-bn strong company remains one of the few vendors to still able to sign super-sized contracts of the past, adds survey.

Like its rival Infosys, the company too has kicked off a succession plan to elevate younger executives into the top management cadre. Under the plan, the company has started a new leadership programme for executives in the age bracket of 35-43.

The Mumbai-based company has planned a capital expenditure of around Rs 4,500 crore for the current year. Of this, it will invest around Rs 1,467 crore in equipment and Rs 3,000 crore in land.

The company which derives 50 per cent of its revenues from North America is witnessing margin pressures due to sub-prime crisis and oil and commodity price escalation.

To address the risk, it has increased diversification across geographies, enlarged the basket of offerings and is focusing on enlarging global presence by strengthening global development centres.

Recently, it bagged a $11.5 million contract from the Uganda Revenue Authority to design and install a tax administration system. The project, funded by Belgium, Britain, the Netherlands and Uganda will bring in a new system that will cut costs and processing time while bringing fiscal transparency and financial accountability.

HCL
Noida-based HCL has bagged 21st position in Black Book outsourcing list. Founded in 1976, HCL is among the India's oldest IT startups, founded by Chairman and CEO, Shiv Nadar.

With $4.1 billion revenue, HCL has over 47,100 employees spread across out of 17 countries. The company's BPO unit has over 11,800 employees. It has offices in India, Ireland, UK and Malaysia.

It supports multi-lingual languages that include eight European languages and eight APAC languages. HCL BPO's focus verticals include telecom, retail, banking and financial Services insurance and hi-tech and manufacturing.

Recently, the European aerospace group EADS partnered with HCL Technologies (HCL) as a supplier for its product engineering and technical publication services. The services will be delivered through the company's design center at Bangalore.

In 2007, HCL was ranked at third position in Black Book of outsourcing list for Highest Satisfaction for Business Process Outsourcing. It has also been appraised at Maturity level 3 of People CMM.

NIIT

Founded in 1981, NIIT is the brainchild of two, young Indian entrepreneurs, placed at 36th position in the Black Book Outsourcing list.

NIIT is a first timer on the Black Book list with top scores from clients in banking, financial services and insurance, travel, retail and manufacturing sectors.

The BPO unit of NIIT, SmartServe (NSS) is a wholly-owned subsidiary of NIIT Technologies. Its main operations are based out of Gurgaon with a disaster recovery site in New Delhi.

NSS has a wholly-owned subsidiary in UK which caters to its marketing and customer management requirements.

The company recently entered into a training joint venture with Genpact to nurture talent for outsourcing companies. The joint venture plans to set up training facilities in several Indian cities, including Gurgaon, Hyderabad, Kolkata, Bangalore, Chennai, Mumbai and Pune in the first year of operation.

In phase 2, the JV also has plans to set up operations at other emerging outsourcing destinations like Dalian, Changchun, Shanghai and Xian in China, and Manila in the Philippines.

Patni

Ranked at 45th position in the Black Book Outsourcing list Patni Computer Systems is a provider of information technology services and business solutions.

The survey states that Patni remains steadfast to its offshore model of keeping long-term clientele happy by maintaining low costs while expanding Europe-centric strategies and staff.

With over 15,000 service clients across industries, the company has 22 sales offices across America, Europe and Asia-Pacific, and 20 global delivery centers across the world.

* Indiatimes News Network dt.9 7 08