IT major HCL Technologies has identified business process outsourcing (BPO) as a key growth area, and expects at least 15 per cent of its revenues to come from BPO related activities over the next three years.
While BPO related work is not a very sizable contributor to the company's overall revenues at present, considering the present rate of growth of the company, income from BPO related services could rise to over Rs 300 crore within the next three years, Arun Duggal, chief financial officer of HCL, said.
"The company will follow a strategy to leverage its expertise in technology domains and industry verticals. We are currently involved in a transition from rule-based to knowledge and judgment based processes. We will also leverage relationships that we have nurtured and built in major global BPO markets," Duggal said.
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In another strategic decision, the company has identified Europe as a key region to propel its growth and it would further increase its presence in Europe through alliances and acquisitions, Duggal said.
He, however, did not divulge any conclusive proposition that the company was working on in this regard.
The company already has two BPO units, HCL E Serve a wholly owned subsidiary of the company, as well as a 90 per cent owned subsidiary, which is an alliance with British Telecom.
HCL Technologies had entered into a strategic alliance with British Telecom (BT) by acquiring a 90 per cent stake in BT's Apollo Contact Center, located in Belfast, Northern Ireland.
The BPO activity is relatively new for the company, with some of the potentially high value-add processes in the pilot phase.
However, the company has initiated certain processes from the concept level onwards, which have directly resulted in business extensions, and has also engaged in certain non-conventional spaces to create a new set of opportunities for value-added services, Duggal said.
The acquisition by HCL Technologies was the first by an Indian company to establish IT enabled services operations outside India. The strategic alliance is part of HCL Technologies' aggressive expansion plan in Europe.