Q. What according to you is the impact of global slowdown on the Indian ITeS/BPO industry?
A. The impact of the global slowdown on the Indian ITeS/BPO industry is limited, to the extent that some of the clients became bankrupt and there was pricing pressure at the beginning of the calendar year. However, there was and there is a continuous requirement for companies to outsource more and more work. In fact, the slowdown has made companies in the US and Europe to review their current policies & processes and consider outsourcing in areas where confidentiality, intellectual property and privacy was a concern.

Q. In view of the current economic crisis, what is your strategy to retain the existing client and acquire new ones?
A. In order to retain existing clients and acquire new clients we focus more on quality in order to satisfy the client. Additionally, we also utilise higher manpower and control costs in order to retain existing old clients and attract new ones.

Q. The slowdown has affected pricing in the BPO sector? For mid size and small companies, these are difficult time to compete in pricing front against the big size companies? What are your views about the same?
A. The pricing pressure has indeed been phenomenal. Favourable exchange rates helped to an extent. However, for pricing strategies, small and mid sized companies are better equipped to control costs more easily then their bigger counterparts.

Q. Hiring in the ITeS-BPO has been low over the last one year. What are your company’s plans in terms of hiring in the coming year?
A. Our company is targeting a 30-40% growth in 2010-11. We intend to hire between 200 and 300 personnel in next year.

Q. Recently, several countries are practicing nationalistic policies. Can you share your views on adopting the local employment model? What are the challenges associated with this?
A. There will not be much effect if countries practice nationalistic policies. Outsourcing is here to stay and will only increase over a period of time.

Q. How do you foresee the growing competition arising from the other emerging destinations such as the Philippines, Mexico to name a few? What are the advantages offered by them as compared to India?
A. In the next 2-3 years, it should not be a problem. However, if salary levels in India continue to spiral, as it has been in the past few years, then other destinations will start gaining significant ground.

Q. Please comment on the outlook of the Indian ITeS/BPO industry and your company in particular?
A. The constant volatility of the Dollar-Rupee exchange rate is a cause for concern - more so, because a large volume of the business comes from North America. Also, there is still a good scope for reduction in costs, if the central and state governments take significant steps to address the inefficiencies in public transport, power and education as well as become a lot more proactive in their support of industry growth by providing attractive incentives on various issues that impact the cost of running the business. As of now, the industry continues to take the burden of generating its own power, providing public services like transport and security as also huge training interventions for freshmen to make them employable.

Q. The latest economic fundamentals are indicating recovery; do you think that Indian ITeS-BPO is also recovering?
A. The Indian BPO industry has not only outlasted the recession, but actually benefited from it. For most firms it was an excellent opportunity to not just cut costs in the immediate future, but create a lean organisation that will be even more profitable once the economy recovers and deliver enhanced customer value. For us it was an opportunity to convince such firms that we can help them build a lean organisation by adopting their business processes as our own. Internally, it was time for introspection on further improving our cost efficiencies and exploring new markets. During the recession, HGSL emerged as a net hirer, opened new global delivery centres, added more clients, retained the existing clients and posted impressive financial results.

Q. Please comment on the outlook of the Indian ITeS/BPO industry and your company in particular?
A. The long term story is intact and Indian ITeS/BPO industry will continue to grow over the next 5-10 years. Our company is targeting an annual growth of 25-30% for the next five years.