Source: The Financial Express
With new industries opening up to the concept of outsourcing globally, pure play BPO major WNS is optimistic about tapping newer markets, banking on its onshore and near-shore models, domain expertise and a strong sales force. Keshav R Murugesh, chief executive, WNS Group, tells FE’s Debojyoti Ghosh that the company plans to expand its footprint in Latin America, Africa and the Far East, while adopting a more consulting led approach as a part of its long term strategy.
With margin pressures, declining volumes, wage inflation and an ongoing talent crunch are impacting the overall BPO industry. How do you see business for WNS in the current environment?
We have started to see some positive trends in the overall BPO environment that we can leverage for the benefit of our business. Clients are making decisions faster and, while it will takes some time for us to see the opportunities turn into revenues, we are being pushed for shorter ramp times and more diversified engagements across a client’s business from the outset.
At WNS, the first fiscal quarter of FY12, we, saw solid growth in the top and bottom line compared with the same quarter last year. The quarter saw six new client wins contracts with companies in the travel, insurance, telecom and manufacturing verticals. We have also expanded our relationships with nine clients mainly in the travel, insurance and retail spaces.
While introducing more sub verticals within each area, we are also investing in two new verticals in the healthcare and logistics domains which are white spaces in the market. These verticals present the largest new addressable market opportunities for WNS, going forward.
WNS saw a profit of $0.7 million in the June quarter, compared with a loss of $5.8 million last year. Do you expect business to grow from the current level?
The headroom for growth is huge in the BPO industry and companies across the globe are realising that outsourcing is a key requirement. With new emerging markets, new industries opening up to the concept of outsourcing, the scope for growth is enormous and with our onshore and near-shore models and strong offerings and sales force, we are fully equipped to tap the market opportunities. Our pipeline is robust. WNS had traditionally concentrated on building a strong sales presence in Europe but with a significant part of our sales headcount now being added in North America, APAC and the Middle East, we have shifted our focus. Our domestic business is also picking up steam. The coming quarters look positive. We have upped our full year revenue guidance now to net revenue between $387-407 million.
Is WNS looking at more overseas delivery centres and near-shore facilities to compete with global outsourcing majors?
In terms of our delivery footprint, we are looking at opportunities to establish an onshore presence in North America, so we can serve our clients in close proximity, in certain specific service areas.
Are you open to acquisitions in countries that adds to your existing portfolio?
We are always opportunistic about M&A and keep that on our radar but currently feel that we should focus more on organic growth at least in the short term. However our focus way forward is to grow organically with a strategy to enhance our sales and marketing initiatives.
Which are the new markets you are exploring? Are you planning to increase the headcount?
We see opportunities in the US in the travel, banking and media spaces. Finance and accounting (F&A) opportunities across the board are strong as well. While the pipeline in the UK and Europe has some good-sized deals in the insurance, travel and CPG industries, our pipeline in the Asia Pacific and the Middle East regions also looks promising with opportunities in the insurance, travel and banking spaces.