Major India-based BPO pure-plays see revenues fall

(By Anthony Miller – Friday, 8th May 2009 9:45am). Just time for a quick review of two important India-based BPO pure-plays, Genpact and WNS. Both suffered sequential revenue decline in the quarter ended 31st March ’09, Genpact by 6% (to $266m) and WNS by 1% to $133m, though this was in fact -4% excluding ‘pass-through’ revenue repair payments. This brings WNS’ FY revenues to $539m, or $386m excl. RRP, a 33% rise yoy, helped by the AGS (Aviva Global Services – see WNS wins mega 8 year $1b BPO contract with Aviva) and Call 24/7 (also UK-based) acquisitions.

Although Genpact is twice WNS’ size, it is WNS that is far more influential in the UK, which is the source of some 60% of its revenues. Genpact is incredibly opaque over its financials, but we suspect the UK contributes no more than 15% to the total (see Genpact ups the ante on 2009 growth). Although part of the reason for WNS’ high UK business skew is of course its airline BPO activities (it was BA’s Indian captive), WNS is also the UK market leader in motor claims processing (see TIG – first half ups and downs). At current course and speed, WNS forecasts flat revenues through to March next year, though expects earnings to rise 9%. TechMarketView subscription service clients will be able to see more on both these players – and indeed the other India-based majors – in the next edition of OffshoreViews.