Hughes open to BPO services for third parties

A year after Hughes Software Systems launched its business process outsourcing services for group companies abroad, the company is now looking at offering the services to outsiders also.

"We are in talks with 3-4 new non-Hughes clients. These are companies in the US and in the UK. These are the countries where all the action is," Hughes Software Systems president and managing director Arun Kumar said.

Hughes Software Systems had set up its dedicated business process outsourcing services division, Hughes BPO Services, during the last financial year . It is based at Gurgaon, on the outskirts of Delhi.

It started off by providing services to Hughes Network Systems Corporation Inc. and to the HNS Direcway network in the US.

At the moment, the division employs some 300 people. But the number could be significantly ramped up once the new deals are signed.

The Hughes BPO contact centres provide online customer care services using voice, chat an e-mail across multiple industry segments such as IT and networking, telecom, automotive, insurance, banking and financial services.

Kumar also disclosed that the shareholding of foreign institutional investors in the company has risen from around 7-8 per cent to almost 15 per cent in the last six months.

Hughes Software Systems had recently revised its guidance for the financial year from 40 per cent to 60 per cent for topline growth and 55-60 per cent to 80-85 per cent for bottomline growth.

"We have had five quarters of sequential growth. And I expect it to continue in the next year," he added.

Kumar further said that there were no visible signs of the pressure easing in the near future.

"Most of the growth in the sector is volume-led. I don't expect a significant turnaround in pricing in the near future unless companies are able o give more value," he said.

As regards the prospects for software companies in 2004, Kumar said that he expects IT spending as well as spending on research and development by companies to remain at more or less the same levels as 2003. "However, thanks to offshoring, more can be done with the same budgets," he added.