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The Rise of the Domestic Call Center
Continued from page: 7

Monday, February 11, 2008
Old is Gold
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With an estimated revenue of Rs 58 crore, Magus stands sixth in the DQ Domestic Call Center Top 10 list.

It is among the oldest independent companies in the list, with an experience of close to two decades. The company, unlike many others which started out at that time, has focused on the inbound customer services business and draws 90% of its revenue from there. Magus positions itself as a customer retention company with its extended definition of customer, including consumers, employees, and channel partners of its clients. In fact, Magus is one of the most acknowledged dealer-support service providers and has a successful track record in the demanding media business.

Like most companies in the list, Magus draws a whopping 85% of its revenue from its telecom clients that include the top three private GSM service providers in India, though the company has a total client base of around 20.

Despite a much-hyped move by Bharti Airtel to consolidate its customer services outsourcing, which was followed by Vodafone and Idea, Magus is one of the few older service providers that all these companies still retain.

Magus has witnessed a growth of around 45% CAGR in the last four years and expects that to continue in future. While it expects the share of its telecom business to come down marginally, it is focusing on new areas like banking, entertainment, and retail. The company will continue to focus on inbound customer retention even in the new verticals that it expects to grow.

The Tata Entry

SerwizSol, a wholly-owned enterprise of Tata Sons, may be a small entity in the huge Tata empire but if plans go well, it could be Indian domestic BPO industrys own Convergys or Genpact. Starting as the in-house customer service operations of Tata Groups telecom services entities, SerwizSol is tapping other clients, starting, of course, with another group entityTata Sky.

Though the Tata group companies still account for an estimated 70% of its revenues, the company is building a framework to cash in on the domestic consumer opportunities. To start with, the company has managed to sign in a few clients in BFSI and travel, including a low-cost airline.

Like a mature captive operation of a large company, SerwizSols distributed delivery is not spread too thin, as in the case of its peers in similar revenue bracket. Its delivery operations are consolidated in three placestwo 1,800-seat centers in Pune and Hyderabd, and one 1,000-seat center in Mohali. The other advantage of the company is that being an in-house operation, it has expertise in all the areas of customer lifecycle management.

However, the company is positioning as a customer care organization, also eyeing the potentially long-term opportunities of consumer care for all consumer companies, even as most other service providers are looking at verticals such as telecom, BFSI and travelthe areas that are easier to tap but are seeing commoditization. This means the company has to look at a micro-marketing strategy.

Though SerwizSol has so far grown organically, it may have to look at inorganic ways to grow further.

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