BPM Firms Shine the Light with New Rev­enue Guid­ance Ex­perts say years of in­vest­ment in plat­form & dig­i­tal of­fer­ings are be­gin­ning to bear fruit

The Economic Times - - Disruption: Startups & Tech - Jochelle.Men­donca @times­group.com

Ben­galuru: Busi­ness process man­age­ment (BPM) com­pa­nies Gen­pact , WNS and EXL have all raised their rev­enue guid­ance in the last quar­ter, on the back of ac­qui­si­tions and im­prov­ing de­mand, buck­ing the slow growth that has hurt the rest of the IT in­dus­try.

Ex­perts say the im­proved out­look comes on the back of years of in­vest­ments in plat­form and dig­i­tal of­fer­ings that are be­gin­ning to bear fruit.

ON GROWTH PATH

ings and has been mak­ing key ac­qui­si­tions in the space. That busi­ness has been grow­ing at 20% year-over-year. WNS and EXL too have ac­quired ca­pa­bil­i­ties to spur growth but not all the out­per­for­mance can be at­trib­uted to ac­qui­si­tions. WNS’ June-quar­ter rev­enue rose over 24% over the last year and even strip­ping out its three ac­qui­si­tions — ValueEdge, De­nali and HealthHelp — its or­ganic rev­enue grew over 13% in con­stant cur­rency. BPM com­pa­nies are also in­creas­ingly tak­ing steps to boost their or­ganic growth. WNS has grown its sales team 20% to 91 at the end of the first quar­ter over the last year, af­ter not adding any net-new sales peo­ple for nearly the pre­vi­ous three years.

“These re­sources will also be fo­cused on deals led by tech­nol­ogy, dig­i­tal, an­a­lyt­ics and fi­nance, and ac­count­ing across our core ver­ti­cals. We be­lieve this in­vest­ment is nec­es­sary to meet our growth ob­jec­tives go­ing for­ward and re­flects the op­por­tu­nity in front of us,” Mu­rugesh told an­a­lysts in July.

The com­pa­nies also say they are win­ning more deals than they had in the past and that the pipe­line is stronger than it has been for years. “We had 24 client wins in the first half of the year. This is one of the strong­est client wins that we’ve had across the years,” Ro­hit Kapoor, CEO of EXL, said. “De­spite win­ning a sig­nif­i­cantly larger num­ber of deals, the pipe­line re­mains strong.”

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.