|
SERVICE PROVIDERS LOOKING AT RIGHT
PRICE
After galloping at a fast pace, BPO
bigwigs are now taking a break to watch their
bottomlines.
The bigger BPO companies are
finally putting their foot down and saying no to
business if it doesn’t come at the right price or is not
big enough. Top management of quite a few big vendors is
today busy chalking out what kind of work they should
not do; what kind of deals they should not sign and how
much commitment in terms of volume or time-period should
they insist on.
This is rather unusual for an
industry used to an insane price war to prevent even the
tiniest piece of business from going to a
competitor.
Commercial logic is finally ruling
the BPO landscape, where many a vendors have signed
unviable deals where chances of making profits are bleak
though the business volume and headcount is growing at a
break-neck pace. In a virtual race to clock huge growth
rates and increase headcount till now, BPO firms are
finally looking at making money.
Though no one goes on record, a
Delhi-based call centre recently said no to a large
American company because it wanted to outsource only for
six months and a Bangalore-based company said no to low
pricing.
In sharp contrast, desperate
players have been offering what many call suicidal
pricing to fill up their orders books and unutilised
capacities. Prices have dipped by 50% to 60% of even
more in the last three years to about $10 an hour and
sometimes as low as $5 per hour.
However, though prices are yet to
see a big jump, but at least the bigger vendors are
refusing to undercut beyond a point. Getting contracts
from global bigwigs have obviously not proved enough.
Quality would soon start slipping if they are not making
moolah, vendors and their consultant seem to
agree.
| 