KPO Firm in India Expands Operations to Other Cities
FirstObject Technologies Limited, a KPO service provider in India with operations in Hyderabad, is planning to invest $2.5 million to set up 150-seater facilities at the Visakhapatnam Special Economic Zone (VSEZ) and at the Software Technology Parks of India (STPI)-Kakinada.
The bad news is recent strikes that have affected some KPO service providers in India based in Hyderabad prompted the company to scout for new locations outside the city. The good news is, it is proving to be a boon to other Tier-II and Tier-III cities as FirstObject and other KPO firms in India continue to find ways to minimize the risk to its delivery model.
Hyderabad is one of the major centers of this business in the country and many KPO service providers in India are based there. It was primarily the US and European banks and finance and insurance companies looking to outsource their operations to BPO and KPO firms in India who found Hyderabad an ideal location.
This year Hyderabad is expected to replace Bangalore and Mumbai as preferred destinations for IT companies looking for KPO services in India, according to “IT Outsourcing to India – Analysis of Cities” by Gartner Inc.
The 2004 report cited improving infrastructure, overall skills availability, good quality educational institutions and active political support as some of the important drivers for making Hyderabad a top location for KPO companies in India.
Unfortunately, recent labor-related disputes have affected KPO firms in India that operate in Hyderabad. “Almost 15 productive days were lost because of the recent strikes. This is affecting our regular functioning and client servicing,” Vivek Hebbar, chairman of FirstObject Technologies Limited told Business Standard. He also cited attrition and non-availability of required manpower in Hyderabad as factors for expanding its KPO services in India to new sites.
The two new facilities of the KPO company in India will focus on developing MBBS, law, management, engineering and other high-end courseware for Indian and foreign colleges and universities. Additionally, it will provide courseware for entrance tests like IIT-JEE through an ASP platform.
Discussion with the officials of the VSEZ and STPI-Kakinada had already started and FirstObject. VSEZ is the major industrial center in the state of Andhra Pradesh where several industrial units in the public and private sectors are located. (STPI)-Kakinada is part of a nationwide network that provides KPO companies in India that specializes in software development with export-oriented unit scheme, world-class data connectivity, consulting and infrastructure solutions.
The company says operations in SEZ and STPI-Kakinada will start by March of this year, proof of the resilience and flexibility of the KPO industry in India.
FirstObject, entered the KPO industry in India almost two years ago with Bloomberg, Reuters and Dow Zones among its active clients. The KPO firm in India currently employs more than a hundred people in the country and around the globe. It services its KPO clients from Hyderabad. It plans to acquire 50 new clients across businesses by March 2010.
