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