Tata Consultancy Services (TCS), the country’s largest software services firm by revenues, is competing for 5-6 business process outsourcing (BPO) deals worth up to $150-200 million, a senior executive said. The outsourcing deals are largely in verticals such as banking and financial services, retail and energy & utilities.
“In the banking and financial services space, there is a boom in the US in the mortgage and collections space,” TCS vice-president and BPO services head Abid Ali Neemuchwala said. The Indian IT firm is also seeing demand from life sciences and healthcare, telecom and media sectors.
TCS provides BPO services such as finance and accounting, human resources outsourcing, supply chain management customer support through centres in India, China, South America and Europe.
TCS is also seeing new growth areas such as regulatory compliance and risk management emerge, in the aftermath of the financial crisis in the US and Europe.
North America and the UK remain the largest markets for TCS’ BPO business but the firm is also seeing traction in continental Europe, Latin America and India. Mr Neemuchwala said the focus of the BPO business in the domestic market is on deals in the travel and hospitality and insurance sectors. TCS is also competing for integrated IT- BPO deals in the government sector in India.
In a bid to gain clients that remain wary of making new investments in IT, the Indian IT firm is using its platform-based BPO model whereby it makes investments the platform — finance & accounting, for instance — and the client pays on the basis of his usage. “The margins are higher in this model as it’s non-linear,” Mr Neemuchwala said.
The BPO business contributed about $450 million to TCS revenues last fiscal. TCS had acquired Citigroup Services, Citi’s captive BPO unit in India, for $505 million last year. As part of the deal, Citi had signed an agreement to provide business worth $2.5 billion to TCS over a period of 9.5 years.
India’s BPO sector is estimated to have generated revenues worth $14.7 billion in FY09. The sector employs about 1 million people directly. According to a Nasscom-McKinsey study, the total addressable market for the BPO industry is $630 billion.
“In the banking and financial services space, there is a boom in the US in the mortgage and collections space,” TCS vice-president and BPO services head Abid Ali Neemuchwala said. The Indian IT firm is also seeing demand from life sciences and healthcare, telecom and media sectors.
TCS provides BPO services such as finance and accounting, human resources outsourcing, supply chain management customer support through centres in India, China, South America and Europe.
TCS is also seeing new growth areas such as regulatory compliance and risk management emerge, in the aftermath of the financial crisis in the US and Europe.
North America and the UK remain the largest markets for TCS’ BPO business but the firm is also seeing traction in continental Europe, Latin America and India. Mr Neemuchwala said the focus of the BPO business in the domestic market is on deals in the travel and hospitality and insurance sectors. TCS is also competing for integrated IT- BPO deals in the government sector in India.
In a bid to gain clients that remain wary of making new investments in IT, the Indian IT firm is using its platform-based BPO model whereby it makes investments the platform — finance & accounting, for instance — and the client pays on the basis of his usage. “The margins are higher in this model as it’s non-linear,” Mr Neemuchwala said.
The BPO business contributed about $450 million to TCS revenues last fiscal. TCS had acquired Citigroup Services, Citi’s captive BPO unit in India, for $505 million last year. As part of the deal, Citi had signed an agreement to provide business worth $2.5 billion to TCS over a period of 9.5 years.
India’s BPO sector is estimated to have generated revenues worth $14.7 billion in FY09. The sector employs about 1 million people directly. According to a Nasscom-McKinsey study, the total addressable market for the BPO industry is $630 billion.
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