BPO, now for smart investments

BANGALORE: BPO has been India’s biggest success story in recent times and almost everyday a new enterprise is coming up that aims to service untouched segments for back office work. Berg Wealth, a new BPO company that aims to service foreign investment banks, is one of the newest entrants.

"We plan to offer technical analysis services to investment banks. Though our primary target will be banks abroad, since then with the time difference we can assure them analysis of stocks every morning on their desktops, our doors will remain open to domestic clients also," said Maltesh Somasekharappa, who will be heading Berg Wealth operations.

The company plans to begin work in the second week of March 2004 in Bangalore, with a core team of 5 people. The company plans to scale this number up to 25 employees within the next six months. While Somasekharappa will handle the operations and management part of the company, much of the money amounting to an initial investment of Rs 50 lakh, will be put in by an angel investor, who wishes to remain anonymous.

"Technical analysis is done based on stock charts. Every stock leaves a pattern over time and by studying these patterns, one can make reasonable shots at estimating the movement of the stock in the future. Many investment banks employ full time people to do the analysis and it is this function we hope to take off their hands," explained Somasekharappa. According to him, technical analysis needed more financial and stock data than company details, which can be easily accessed through data providers like Reuters.

He added that though there were some firms in the country who were involved in financial analysis, there was none, which did in-depth technical analyses. He also said that by outsourcing to Berg Wealth an investment bank can cut down on its labor costs by up to 50 percent, apart from having its analysis done ‘while they sleep’.

Somasekarappa, who is a product of the London School of Economics, believes that the company will be able to see a break-even within six months time. The company wishes to eventually become the one-stop shop for all BPO needs of investment banks including transactions.

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