The BPO arm of Infosys has clocked $135 million in revenues in the first quarter of 2013 fiscal, a 23 per cent growth over the fourth quarter of FY12. The revenue jump is attributed to its transformational projects instead of plain vanilla BPO services.
Further, it has seen margins go up by 4 percentage points over the previous quarter. Infosys BPO expects to grow in the 16-20 per cent range this fiscal.
To keep this growth going, Infosys BPO is looking at acquisitions and planning to open development centres in locations outside India. Currently, Infosys BPO does back office work in areas such as manufacturing, financial services, procurement and HR. The company is looking to acquire clients for back office work in verticals like manufacturing and healthcare.
“We will look at acquisitions in certain domains where we can grow faster,” Mr Swami Swaminathan, Head of Infosys BPO, said. Further, the company is present in 6 locations in India and 12 centres abroad, serving clients in Australia from Mexico, for instance.
“Clients are increasingly asking us to look at ‘rightshoring’ locations and for our competitive advantage, we constantly evaluate the best locations for the best services," said Mr Swaminathan.
According to Infosys officials, 35 per cent of its current revenues comes from development centres outside India where the company has 20 per cent of its workforce. The higher margins give a fillip to Infosys overall as the company faces pricing renegotiations, according to analysts. The company has also seen growth in Asia Pacific (APAC). The current rate of nine per cent there is double the 2010 value.