Convergys to focus on domestic market

Convergys to focus on domestic market

Sees opportunity in India’s telecom sector

Tuesday, June 03, 2008

After the tie-up with BSNL for providing billing solutions, Convergys will focus on its information management business, piggy backing on the growth of the Indian telecom.

Sushma Naik of CyberMedia News caught with Douglas E Brueckner, senior vice president- Global Software Development, Convergys Corporation and Paresh Shah, vice president and general manager of Convergys' Information Management.

With the recent BSNL tie-up, you have just become a player in the Indian market. How do you see your growth from here?

Shah: Convergys has begun working on the dynamics of the BSNL deal. We will provide billing and other of our services to them. In the meanwhile we are on the lookout for similar deals with many other operators. With some we are on advanced level of discussions and some we are just starting out, announcements will soon be made.

Brueckner: India is a very exciting market for us, especially with the telephony sector. Today there is lot more opportunities with the upswing in allotment of spectrum here. 3G will also open up host of opportunities for providing more content-based data. With such advanced level of services, Convergys can offer its services from call center to business analytics to the telecom operators.

What are the other sectors that Convergys is looking to explore?

Brueckner: There is a boom in cable and satellite (direct to home) services. We see a strong market opportunity and will pursue for upgrading, billing and so on. Since this sector is also poised to mature with complex service offerings similar to the telecom, Convergys will look to offer a cohesive set of services to those who have disparate systems of data handling.

Shah: We missed the bus in the 90’s when telecom deregulation happened. This time when new entrants are coming to the Indian market and there is upgradation by service players, we will ride on the wave.

Could you provide some information on the testing center and the plans for it?

Brueckner: Convergys testing center in India is mainly for its in-house products. This has been largely successful. We have done a number of small deals on an experimental basis to test software of customers, names which we cannot reveal right now. Most of this is in the domain we already operate in. We are looking actively to generate revenue from the testing center services.

The largest chunk of your business is from the outsourcing business. Has it been hit by the falling dollar rate? Does India make cost sense with global economies slowing down?

Brueckner: We still see a lot of potential as before in the call center business we are still strong on it. Most of our contracts are in the local currency, so we are hedged against dropping dollar rates. India is not only driven by cost but also by the English knowledge capabilities, so that would continue.

Shah: We are also looking at addressing the Indian domestic call center potential clients. We are also doing in-depth research for adding analytical capabilities to have higher end Knowledge Processes Outsourcing kind of services in the future.

In terms of headcount what are your growth plans in India?

Shah: We do not have projections but we are constantly adding. We are coming with a new additional facility in Hyderabad, which is our main R&D center. We are also looking strong to bring new products to address the telecom market needs.

Brueckner: Convergys will look to improve margins and add revenue in our outsourcing business. In the Information Management line of business we are looking to grow the business with opportunities in India and APAC region.

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