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Wipro Spectramind rides on BPO boom

Fakir Chand in Bangalore

Spectramind eServices Ltd, now a group subsidiary of the Bangalore-based Wipro Corporation, has started riding on the business process outsourcing boom, being witnessed by the nascent Indian IT-enabled services' sector.

The Delhi-based BPO company is setting up its third centre at Chennai in this (third) quarter of the current fiscal (2002-03) for servicing its growing number of clients, with an additional recruitment of 1000 techies to man its operations.

Spectramind President & CEO Raman Roy told rediff.com in Bangalore on Friday that in addition to the Chennai centre, the company was working on plans to open its fourth centre in the next two quarters depending on the strategic requirements of its existing and potential clients.

Roy, however, did not disclose where the four site would be located, but ruled out Bangalore as a possibility in the near future, as the location depended solely on the needs and strategic interests of its prospective customers.

Roy also refused to confirm media reports that the company had shortlisted Hyderabad and Trivandrum as possible locations for the fourth center.

"We are hiring about 500 engineers this quarter for the Chennai centre, and another 500 by March 2003, so that we could optimally utilise the state-of-the art facilities and become cost-effective as the cost of each chair, according to the industry estimates, works out about $7000-8000 annually," Roy stated.

With its existing two centres at Delhi and mumbai employing about 3200, up by 460 from the first quarter, the company will have about 4200 on its rolls by the end of the current fiscal year.

"Though the Indian IT-enabled services' industry is estimated to be growing at 20 per cent, Spectramind has been posting a record growth of 40 per cent to achieve or exceed the projected target revenue of $45 million by March 2003," Roy claimed.

Ever since Spectramind came under the 'Wipro fold last quarter, it has been a win-win situation, with Wipro's impressive global client base pitching on to outsource their IT-enabled services from the subsidiary.

'During the second quarter (July-September), we have acquired 4 new customers, based in the US, and the number of active clients has gone up to 8 from 7," Roy affirmed.

Leveraging on the strength of Wipro Technologies' global presence, mainly in the US, Spectramind is in discussions with 12 Wipro clients to offer its BPO services.

According to the second quarterly results of the subsidiary, which have been consolidated with that of the parent company, Spectramind posted a revenue of Rs 42.1 crore (Rs 421 million), with a profit before tax of Rs 8.7 crore (Rs 87 million), registering a growth of 21 per cent over the previous quarter.

Hailing the performance of Spectramind, Wipro chairman Azim H Premji said in a statement that the subsidiary was on track to enhance the shareholder value.

"A strong prospect base backs the financial results achieved by the company in the second quarter of the current fiscal. We have signed letters of intent with four new customers, including three in the financial sector and one in the airline industry," Premji declared.

Due to non-disclosure clauses, both Premji and Roy declined to name the new or existing customers.

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