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LPO’s remain positive
Pune Mirror
November 2008
You would expect the melt-down to have everyone in the outsourcing business to be feeling the heat. While the BPO sector does seem to be under pressure, the higher end LPO sector seems to be doing just fine.
While the mood at the fifth edition of the ITES/High End BPO/KPO summit was cautious, it was clear that no one was throwing in the towel.
Ganesh Natarajan, CEO, Mindcrest said, “We have actually seen a bit of an upturn recently because litigation work has gone up since the melt-down began. You see, when a company like Lehman Brothers falls off the map it generates a huge number of lawsuits,” Natarajan said. Also more regulation from the government, as is happening in the United States means more litigation, he added.
Vishal Aggarwal, Senior Manager, LPO, Wipro BPO said, “Most of our clients are corporates. The legal department being a support function budgets are being frozen or slashed in the United States. All that means is more work for us.”
Has the downturn meant that there has been a reduction in pricing. Natarajan denied that and so did Sushant Gupta, CEO, SG Analytics. “Yes, decision making has slowed down and restructuring is happening there but there is an expectation that that will lead to a fresh wave of outsourcing,” Gupta said.
