Lason to go ahead with biz model; mulls expansion

Lason India, a 100 per cent subsidiary of US-based Lason Inc, is expected to continue with its present hub-and-spoke business model and has chalked out an expansion programme to hire about 1,600 professionals for full-time employment during the next 8-10 months. The plans would entail an investment of $1.5 million during this year.

Lason, a third party BPO providing data and document management services, has decentralised its business associate model to about 40-plus 'production centres' in Class B towns in Tamil Nadu and Pondicherry.

Its three hubs in Chennai employs about 1600 professionals in outsourcing activities. The rest is distributed across 40-plus centres employing about 5,000 personnel indirectly.

With its plans to add 1,600 professionals, its full-time staff strength would go up to about 3,200 and the total employee strength will go up to 8,000-plus in the next 8-10 months.

Addressing a press conference along with Thomas W Denomme, director Lason India, Ronald D Risher, president and chief executive officer of Lason, US, said that the company would continue with the same business model and was confident of achieving its goals and objectives.

With a number of orders already in hand, the BPO business of Lason is expected to grow by 25-30 per cent during this year, he added. Its India operations contributed about 20-25 per cent to the total global BPO revenue of over $150 million.

However, he indicated that the 'hub and spoke' model needed tremendous control on processes, quality, technology, and security related issues. He also stressed the need for better managers and better communication bandwidth for this model.

Referring to Lason's rural BPO initiatives, Risher said that company was doing valuation for the rural BPO model. Lason has lined up an investment of $1.5 million to expand its operations in Chennai during this year. A significant amount of the investment would go to training besides spending on infrastructure and equipment, he said.

It also has an additional investment budget, which will go for research and development activities.

The Chennai operations also carry out R & D activities that include developing new technology platforms. It has developed imaging solutions to set standard in document scanning and document indexing and other services.

"R & D is a core part of our operations in India. About 70 people are involved in development activities in Chennai," he said. We will make Chennai operations a Centre of Excellence for R & D and technology development for all of Lason operations, he added.

In December, top two officials of Lason India -- managing director and CEO, Pradeep Nevatia, and president and chief technology officer Ranjit Pisharoty "� resigned from their posts. Their key initiatives included the decentralised business model and taking the BPO work to villages.

Thomas W Denomme, who has been involved in India-related operations over the last two years, will now head the India operations. However, he will be based out of Michigan, US.