Concentrix BPO bets big on analytics; eyes 15% revenue in individual markets in 3-4yrs

The 250-member team is based out of India

Business process outsourcing firm Concentrix, that had acquired IBM's BPO operations in 2013, is moving into high value services with focus on four areas-- digital content creation and transaction, analytics, process transformation and consulting.

Of this the company is targeting that its analytics segment will be 15 per cent of its revenue in individual markets over the next 3-4 years.

"High value is as much a quest for us as it is for any other company. The four areas that I named are high value areas and we want to improve whatever the contribution is from those. Going ahead, in a year or two, we want our high value offerings to be the entry point to acquire new clients," said Anuj Kumar, GM India and South Asia and global lead- Analytics, Concentrix.

At present these four areas in terms of revenue contribution are still in the early teen segment. At present almost 85-90 per cent of the company's revenue comes from customer care work, customer experience (call centre), accounting, among others.

For Concentrix analytics is a 250-member team with majority working out of its India centres and partly in Korea, partly onshore in North America and Europe. "Two years back we had made this announcement that we will be investing around $8 million in the analytics business which we have followed through. Our analytics offering is completely built in-house," added Kumar.

The company will soon announce the launch of its business intelligence and reporting solutions. Kumar believes that companies today face challenges managing data sources, compounded by the lack of quality control and governance. "The analytics business process services market has grown at 30 per cent CAGR (compound annual growth rate)," he said. "We believe our new solutions will offer significant value to enterprises across sectors globally and cement our leadership position in the high-value services market."

Other than India being a significant part of its delivery unit, Cocentrix is also eyeing India for its growing technology demand. "India for us is among the top five largest market globally in terms of contribution. Moreover, we also find that for most of the global MNCs India will be or they plan to have India as among their top four markets," said Kumar.

In 2013, Concentrix acquired IBM's BPO business-- IBM Daksh-- which had a big presence in India, for a transaction amount of $505 million. "It's been almost a copy book integration; we've continued to grow on both our base accounts and revenue quarter on quarter. We've had a very strong performance in the last eight quarters across the globe but specifically in Europe and Asia Pacific, where we have seen strong logo addition. We are almost 30 per cent more in headcount than we were eight quarters back. So, we've had a significant growth," said Kumar.

Before the acquisition of IBM Daksh, Concentrix employee strength was 10,000. At present the company has a total headcount of 70,000 people servicing more than 400 clients in 25 countries.