/dq/media/agency_attachments/UPxQAOdkwhCk8EYzqyvs.png)
Follow UsEver since its debut as an independent company in 2004, the
NYSE-listed, Gurgaon-headquartered
erstwhile captive services subsidiary of GE-had remained the No 1
in the world. For the first time in 2009, it has been overtaken by
another company. And no, the new No 1 is not the BPO subsidiary of a
high profile Indian IT company or an American company. It is the
relatively lesser-known UK-based firm,
which has topped Genpact in terms of 2009 revenue.
In the period January-December 2009 (financial years for both the
companies), while Genpact recorded a revenue of $1120 million,
Xchanging clocked a revenue of £ 750.4 Million. Going by the
average exchange rate of $1.56 per GBP in 2009 (source: OANDA), it
comes out to be $1170 million. With the difference being a good $50
million, even a little variation in exchange rates would not affect the
fact that there is a new No 1 in the BPO street.
What made this possible for Xchanging is a robust growth of 34.5% in
2009, a year in which Genpact managed to grow by only 7%.
Interestingly, what has helped Xchanging to dislodge the Indian company
from the top is the acquisition of another Indian company-
Solutions, though its organic growth has been impressive too.
Andrews, the CEO of Xchanging, who had started Xchanging in 1999,
however, plays down the fact that it is the new No 1. He highlights the
major changes, instead. One of the changes that he has consistently
pursued in the last three years is to convert the company from a
European BPO firm to a global firm.
“During our IPO in 2007, we had said we would create a global
footprint. With the Cambridge acquisition we have. Today, 75% of our
employees are outside of the UK. We have scale and critical mass
in India, driving our lean processing and a sizable presence in
Australia, the Americas and Continental Europe,” Andrews says.
The Cambridge acquisition has been instrumental in entering American
and Australian markets as well as in significantly enhancing offshore
capability in India. Bangalore currently has Xchanging's largest
processing center. The company will soon be setting up a
state-of-the-art processing center in Shimoga — a tier 3 Indian city
located about 275 kms north of Bangalore.
The opportunities for Xchanging is arguably better than any other BPO
firm. Today, it draws only 10% of its revenue from the largest BPO
market in the world: US. That means it has ample opportunity to grow
there. Similarly, today, its offshore component is far less compared to
any other large company. That promises upside on the margin front.
Yet, Andrews' next focus is something else: technology. A technologist
himself, he, however, “underestimated the role that technology can play
in BPO.” Andrews says this, despite the fact that Xchanging probably
has some of the most mature platforms in areas such as insurance and
securities processing.
“India has a lot of potential, and it is not just about processing,” he
asserts informing that Chennai is going to be the company's next
technology hub.
“Our technology vision is to create highly competitive and lean BPO
platforms by utilizing web 3.0 and 4G collaboration technologies. We
see a very exciting future for BPO with technologies such as 4G and
computing,” he says.
The New No. 1 in BPO: Xchanging
New Update