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| Q&A: Keshav Murugesh, Group CEO, WNS Global Services | | 'We can ride out any demand contraction' |
| Piyali Mandal & Bibhu Ranjan Mishra / New Delhi Sep 19, 2011, 01:08 IST |
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 WNS Global Services, The country’s third largest business process outsourcing (BPO) firm, is now looking at expanding its business organically. When its peers are looking at fuelling growth through acquisitions, 1996-founded WNS is not looking at any “big bang” takeover. WNS CEO Keshav Murugesh explains to Piyali Mandal and Bibhu Ranjan Mishra the Mumbai-based company’s growth strategy and plans to tide over the global economic uncertainties. Edited excerpts:
How does the current economic uncertainty resonate with the BPO industry on the whole and WNS in particular?
See, we have invested so significantly in a number of key areas. So, from the WNS’s perspective, we have a high ability to ride out whatever may be the impact of the demand contraction that you may see. We have made huge investment in various verticals and business lines to enhance our technology capability. We have focused a lot on non-linear models of growth. We have continuously invested in new campuses, new learning and development programmes as well as on expanding our global footprint. Recession plays out very well for the BPO companies that have thought through and invested in those areas.
Our clients are interacting very positively with us. A lot of them do not want to make the mistake that they made in 2008 of not taking decision.
What are the lessons you as a service provider have learnt from the previous recession?
We have to continue investing even in difficult times. Even clients realise that those who accepted the off-shoring model in the previous recession came through less impacted.
So you are saying the situation augurs well with WNS? Are you hopeful of meeting your revenue guidance?
Recession need not impact BPO. It may impact the IT sector. Our ability to use the so-called downturn to get more and more clients across verticals is much higher. We are confident of meeting the higher-end of our guidance of $387-407 million.
Analysts are always skeptical about your dependence on a single vertical. Under your leadership, the company seems to be focusing on newer verticals. How is that shaping up?
We have expanded our vertical focus beyond the traditional insurance and travel verticals into areas like shipping, logistics and healthcare. In the short term, the ratios have already started to show. In the long term, it really doesn’t matter. I want all the verticals to compete and grow.
Are you planning to add newer verticals to your business?
We have a quiet a few verticals right now. We want to stay focused and grow those verticals. We don’t feel the need to go into any other vertical at this stage.
What are the plans to expand geographic footprint?
As part of our global expansion programme, we are looking at setting up centers in the North American region. That will be for incremental business. We are also looking at delivery footprint in South East Asia, African continent and Latin America. All those would be through the organic route. We are not looking at doing any big-bang acquisition, now.
Our focus is to really grow the business organically. We have integrated all the businesses that we acquired in the last few years. Though we are open to any opportunity that comes our way (in terms of acquisition), we will try to grow by organic means.
Since you plan to open near-shore centres, will this not increase the cost of doing business?
No. That’s unlikely.We follow a blended profit approach. That means, high profits from some locations offset low profits from other centres. This is how we structure deals for our clients.
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