When people hear the term BPO (business process outsourcing) in India, they immediately think of young adults starting work at unusual hours and competing for space in office transportation. In places like Noida in the National Capital Region or Sector V in Kolkata’s Salt Lake, known for its IT centres, activity continues late into the night. These locations are bustling with individuals barely out of their teenage years who have recently joined the workforce.
In modern office buildings, called call centres, employees are arranged neatly in rows, seated behind computer screens with headsets equipped with microphones—typically connected to internet-based telephones. They handle calls in accented English from frustrated customers in far-off locations like the U.S. or Australia, inquiring about issues like malfunctioning computers or delayed flight status.
This description might accurately depict India’s BPO industry in the early years of the current millennium. During that time, companies worldwide recognised the potential of outsourcing voice-based customer services to Indian cities like Noida, Kolkata, or Bengaluru, where English proficiency is widespread. The reasoning behind this was the significant cost savings achieved through labour cost differentials compared to their home countries.
The Evolution of Business Process Outsourcing
Changes are happening in the business landscape, particularly evident in the evolution of call centres. WNS (Holdings) serves as a notable example. Initially established as a customer service department exclusively for British Airways in 1996, WNS later expanded its services to cater to various industries beyond aviation in 2003. However, its performance gradually declined after that.
In 2009, rumours circulated that WNS was on the brink of being sold. However, the company failed to attract potential buyers due to its unattractive performance. WNS, which originated with customer service centres in Mumbai and Pune, went public on the New York Stock Exchange in 2006, trading at approximately $25 per share in June. By June 2009, the stock had significantly depreciated, trading at $9 per share.
The decline in WNS’s value reflected broader changes in the industry. The preferred terms now are BPS (business process services) or BPM (business process management), signifying the industry’s evolution in India. Although the distinction between these acronyms is subtle, it mirrors the nuanced changes within the Indian industry. While voice-based services persist (though much of it has moved to countries like the Philippines, where labour costs are lower and English proficiency is increasing), the emphasis has shifted towards comprehensive management of business processes for clients, such as finance and accounting, utilising skilled workers with domain expertise, and cutting-edge technologies like artificial intelligence (AI), machine learning, and data analytics.
A Significant Leap
What prevented WNS from facing a disgraceful collapse in 2009 was a timely shift to a new business strategy driven by specialisation in certain domains and the utilisation of technology, all led by a new leader. This shift has propelled the company to become one of the most promising entities in the BPM sector a decade later. In the fiscal year 2017-18, WNS reported a net revenue of $741 million, with a compounded annual growth rate (CAGR) of 11.19% and a net profit of $118 million, boasting a five-year CAGR of 21.56%. According to WNS’s most recent financial reports, the company’s revenue over the trailing twelve months (TTM) is $1.30 billion. In 2022, the company earned $1.20 billion in revenue, marking an increase compared to the $1.05 billion revenue generated in 2021. Revenue represents the total income a company generates from selling goods or services.
A significant portion of WNS’s transformation can be attributed to its CEO, Keshav Murugesh, aged 55, who joined the company in 2010 when institutional investors held nearly 87% control. The board saw the necessity of bringing new leadership to rescue the sinking company. Murugesh, trained as a chartered accountant, commenced his career at ITC and played a key role in establishing ITC Infotech, the IT arm of the tobacco-to-hotels conglomerate. Subsequently, he joined the U.S.-based IT firm Syntel in 2002 and assumed the role of CEO in 2009. At Syntel, he spearheaded a significant shift in the company’s operational model by relocating a considerable portion of its operations to centres like India, thus enhancing the margin profile. He also established a BPO arm.
WNS has achieved notable recognition and awards. It won the Association for Talent Development (ATD) BEST Award and was recognised as one of India’s top 25 most secure workplaces at the KelpHR PoSH Awards 2023. Additionally, in 2023, the company was honoured with the CFONEXT100 Award. Furthermore, the WNS Cares Foundation received the SABERA Award 2023.
