Spectramind grows 2%

WIPRO TO SPREAD WINGS

Wipro Spectramind, the BPO subsidiary of Wipro, has registered a 78 per cent increase revenues for the quarter ended June 30, 2004, compared with the corresponding quarter last year.

However, on a sequential basis (Q4 to Q1), this business unit has grown by only 2 per cent. The sequential growth numbers indicate that it was rather a flat or a subdued quarter for this well-known BPO subsidiary of Wipro.

Detailing reasons for these flat sequential growth, Raman Roy, who heads Wipro Spectramind, said "The decreased sequential growth was mainly due to certain one-time contracts. Also, some of our clients changed the business model."

Adding that pricing pressures had decreased when compared to how it was in the last 2-3 quarters, Roy said, "We are not seeing some absurd pricing like we saw the last 2-3 quarters where people used only price as the differentiator. However, it is wrong to say that the pressure of pricing is completely over. Price realizations are better as the customer is looking for value. Some projects were one time while there was also a reduction in volumes of certain processes. We do not see this as an on-going trend in the long-term."

While the average rates of $13-14 per hour are considered as good, Roy feels that the BPO unit was performing well as it currently prices itself at about $ 13.6 per hour.

However, one-time projects do have an impact on this figures.

While Wipro experienced an attrition of 17 per cent, the BPO business registered an attrition rate of 20 per cent. Of this, nearly 6 per cent was within the training period, while the remaining 14 per cent was post training period.

Nearly 85 per cent of the revenues were voice-based, while non-voice-based revenues have grown to contribute to the remaining 15 per cent.