The Hindu Business Line : Call centres: One size doesn’t fit all!

Small size matters, especially in call centres. With mid-sized companies increasingly outsourcing part of their work to India, they are not necessarily looking at 1,000 associates working for them. A 50-100 seat centre is not only easy to manage but also more receptive to the smallest of processes.

“Size always creates an element of macro management and that we believe is not desired by small and medium companies outsourcing from the UK. We have witnessed over the last few years that the smaller the centre is, the greater is the attention and devotion given to small processes and it is this that we seek in our efforts to secure 50 more call centres to partner with us,” says Paul Kopec, Chairman of Scotland-based VoiceStream Group.

The company recently acquired 75 per cent stake in Chennai-based Helios Outsourcing, bringing an end to its search for a single partner to outsource and manage its voice-based outbound tele-marketing requirements in and around India.

So, is this where the growth is, asked eWorld, during a recent interaction with the new owners of Helios.

“Yes. The growth is in the associate call centres of 50-200 seat size, across the country, from Kashmir to Tirunelveli,” Kopec shot back. VoiceStream will be investing close to $3 million during 2008-2010 and over a period, expects a revenue stream of about $85 million from the 100 call centres that it will be associated with in India.

Excerpts from the interaction:

Twenty-three years in IT and telecom is a long innings. What have been the decisive turns in the history of VoiceStream over the period?

Since its inception in 1985, the group has been extensively focussed on the telecom vertical and the decisive turns of VoiceStream over this period have been in line with the ups and downs that the telecom industry has faced during the same time.

From launching the first mobile phone in Scotland, the group has come a long way in now owning successful companies around the world with its flagship brand being Telecom 3. The launch of Hutchison Whampoa-owned ‘3 network’ was probably one of the most significant turns in the business which opened a whole new realm of potential using call centres in India whilst every new business venture of the group was certainly a decisive turn by itself.

You were one of the early players in the mobile telecom space. What are the advantages that VoiceStream has as a result of its early exposure?

Invaluable experience! The mobile telecommunication industry has probably witnessed the greatest changes in the last 20 years in comparison to competitive industries and being a part of it all has given us the muscle needed to carry on our extensive and exhaustive focus on the telecom sector that continues to grow at a phenomenal rate around the world.

So, what attracts you to Indian call centres?

Indian call centres, since their boom 10 years ago, have truly come of age. From providing low-end low-key services to moving up the value chain, outsourcing to India is no longer a question of ‘Why’ or ‘How’ but ‘When.’

The experience that the call centre industry has gained in India will prove to be of substantial use, even if competition were to creep in, in the near future.

Like all new owners, you have all good things to say…

(Laughs) Data security and attrition continues to be challenges facing the industry at large but quality-conscious and committed players in the market always have the tools necessary to turn threats into opportunities. That’s what we intend to do at Helios Outsourcing.

Whilst world geographies are envying the attention India has secured on the global stage, we believe there is still a long way to go for any other country to become as competitive in terms of quality, delivery and cost in comparison to the Indian scenario.

Talking about the Helios acquisition… How does it fit into VoiceStream’s scheme of things?

Helios Outsourcing will now provide end-to-end call centre management service for the VoiceStream group and its elite clientele through its own in-house operations as well as through its network of ever growing associate call centres around the world.

Through the merger, the VoiceStream group is eyeing an investment of $3million in developing Helios Outsourcing into one of India’s best niche-oriented call centre management firms.

Your focus has been on the small and medium-size call centres. What special advantages do these possess compared to the bigger ones?

Size always creates an element of macro management and that we believe is not desired by small and medium companies outsourcing from the UK.

We have witnessed over the last few years that the smaller the centre is, the greater is the attention and devotion given to small processes and it is this that we seek in our efforts to secure 50 more call centres to partner with us.

From the demand side, are we seeing any major shifts, say, from the bigger companies to the smaller ones?

Yes, as mentioned, we believe large companies will face increasing pressure to be cost-advantageous. This is especially true for the SME market which is engaging itself heavily in outsourcing from the West. This, we believe, is a great opportunity for the type of centres we work with.

Coming back to India. How do you propose to tackle the manpower crunch in the country’s BPOs?

Getting the right talent is an issue faced all around the world and it is of no surprise that Indian BPOs with their phenomenal growth are now facing an acute shortage of manpower. I understand, however, that the industry has been working closely with educational institutions and this, along with the Government’s initiatives to boost talent, should certainly help.

Isn’t that elusive talent making salaries bigger by the day? What is your take on the wage inflation in the BPO space?

Wage inflation is a serious concern and must be addressed by the industry participants themselves, as higher competition has resulted in lower rates.

In the long run, unless inflation of wages is reined in, solutions will be difficult to come by.

VoiceStream has an international presence in seven countries and is responsible for over 1,000 worldwide. How are you coping with the effects of the widely-talked-about global economic slowdown?

The significant drop of the US dollar has indeed been a disappointment for the offshoring industry.

As like most countries, the Indian currency is pegged against the dollar. Even the appreciation of the pound against the dollar during the same period hasn’t helped completely cover the loss of revenue for Indian outsourcing firms.

But what’s the way forward? The issue is to control costs and enhance yield, which will countermand the effect of the economic slowdown and is, overall, good for business.

dmurali@thehindu.co.in

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