Developing a “vertical” mind set

While Indian BPOs are beginning to make a strategic shift in their offerings to address the requirements of verticals, we are yet to see a more intensive focus and skill-building. In the current environment, one is seeing few “gurus” and domain specialists. BPOs are primarily focused on “per seat realizations”-a trend that cannot be sustained on a long term basis. BPO players need to add value through focus, from a verticals standpoint.

The strong verticals focus by vendors has to be bolstered with relevantly skilled manpower with domain knowledge that can understand and redress the pain points of customers. As CRM becomes important for organizations across verticals keen on attracting and retaining clients, they are outsourcing this activity to BPOs that possess the necessary vertical knowledge. Keeping this in view, BPOs need to hire and sustain their pool of domain specialists, well versed in specific businesses. As more and more Indian companies join the outsourcing bandwagon and demand for good quality service increases, BPO companies also need to explore new opportunities in smaller cities. For telemarketing English is not required. Local language is enough and these services can be provided from smaller cities where there is no cost pressure.

At the same time, BPOs must innovate to provide solutions to domestic customers that are particularly suited to their particular verticals. Innovative products, services, processes and business models have to be unveiled by India's leading BPO organizations that enhance their verticals focus. “Innovate to differentiate,” needs to become a guiding principle for Indian BPOs intent on expanding the domestic market opportunity in India.

Clearly, domestic BPO has a great chance to survive and thrive. Some smart repositioning by India's leading players, a strong vertical focus, leading to higher value add for customers and a rightly skilled workforce can enable companies to harness the power of the domestic market and build on this new revenue stream. At the same time, companies must leverage the knowledge and domain strengths offered by Intelligent Communications solutions providers who have experience in vertical markets, and cutting-edge offerings that help them help their customers.