Patni's new BPO biz to flow into Gandhinagar

Buoyed by the infrastructure and talent pool available in and around Gandhinagar, Patni Computer Systems Limited, leading global IT services provider is planning to move all its new BPO business to MindSpace Special Economic Zone (SEZ) in Gujarat. So far the company's BPO business used to run from its Noida SEZ even as Patni Computer launched its offshore development centre (ODC) at the MindSpace SEZ in Gandhinagar.

"The inauguration of our new facility in Gandhinagar demonstrates our sustained commitment to this region. We are looking at strengthening our presence in this burgeoning IT delivery hub and expect Gandhinagar to play a crucial part in this delivery expansion strategy. We are doubling our capacity in Gandhinagar from the current 400 seats in the STPI to 770-800 with the launch of ODC facility in the SEZ. Moreover, all our new BPO work, which currently happens in Noida, will move to Gandhinagar because what makes the city attractive is the infrastructure here," said Jeya Kumar, chief executive officer, Patni Computer Systems Limited.

While BPO forms only 15 per cent of Patni Computer's total business of $ 656 million (Rs 3,000 crore approx.) as on financial year 2009, the company expects a growth of 45 per cent in its BPO business.

The move to set up an ODC in the MindSpace SEZ in Gandhinagar is triggered by a recent deal signed by the company to provide product engineering services (PES) and Application Development Management (ADM) services to a leading UK-based enterprise. While the phase one of the SEZ ODC comprises 15,263 sq ft of planned area, the second phase consists of 18,244 sq ft.The headcount of the existing centre stands at 400 at the STPI unit and the new centre at the SEZ plans to hire an additional 350, taking the total to over 750 employees in the next one year.

While in 2009 the company didn't hire anyone, in 2010 Patni has hired 4,000 so far, taking the total strength of the company to 17,000. Patni Computer is also facing a higher attrition rate this year. "Last year the attrition rate was 13 per cent while this year it is 22 per cent. However, while the industry average of tenure is 3.5 years, the same at Patni Computer is 7.5 years," said Kumar. Patni, which opened new delivery centres in Mexico, Texas and China, expects to grow by seven per cent for the year 2010 and 15 per cent by 2011.