Amitava Roy, president, Symphony Services
How has the global slowdown affected Symphony’s business?
The economic crisis hasn’t had much impact on us. We feel that the next two
quarters are going to be strong. We are getting new orders which are as strong
as the earlier. We grew 45% last year and expect to keep the same pace this year
also. From an Indian industry perspective the industry would remain vibrant but
there will be adjustments when we go on. We can see some impact of the financial
crisis in the BPO and KPO industry.The overall growth rate may slowdown slightly
but it will not be dramatically low, as the dollar has gone up quite
significantly. So, it will reduce some of the issues belief is that there will
be less growth for the certain sectors but for overall industry there will not
be much difficulty.
What is the scope for outsourced product development in India?
McKinsey’s latest report says, as the cost increase in the western
countries, more outsourcing will happen and the pie is going to become bigger
and the market will grow very fast. The outsourced product development itself is
projected to be above $11 bn by 2011. According to Nasscom, the market
projection for outsourced product development is $3.5 bn, which comes to 30-35%
of the overall market. It is a fairly large market and there are only few
specialized companies in this market. There are many new small companies coming
in the market, so the potential for a specialized company like ours is high.
Can you elaborate on some of your expansion plans, both organic and
We are planning to expand our operations but that will be within the
existing geographies, we have already opened a center in China. We have opened a
new facility in Pune and also plan to expand our presence in Bangalore. We
expanded our sales and marketing team in Europe and the US. Plans for inorganic
growth always existed but it has to be a value addition for us, not just to
aggregate revenue. We look for inorganic growth only if it gives us special
skills or new markets.