Source :5 May 2010, 0148 hrs IST,ET Bureau
NEW DELHI: HCL Technologies on Monday announced a change in the leadership of its BPO arm, which has seen steady drop in profitability and revenues. India’s fifth-largest software firm announced the appointment of former chief executive & MD of TCS e-Serve Rahul Singh as president for business services.
HCL’s BPO business was headed by Ranjit Narasimhan over the past few years. He moved out to head new strategic initiatives about three months ago and the BPO business was being led by Rajiv Swarup, a senior HCL executive, in the interim.
Rahul Singh will be responsible for driving growth in the company’s BPO and business services division globally, HCL Technologies CEO Vineet Nayar said. “We welcome him to HCL as we reshape and transform the way BPO and business services are being offered to our customers, tightly integrated with IT services,” he said.
A large part of BPO and business service operations was devoted exclusively to British Telecom, mainly providing voice-based services. However, that will change as an effort to revive the fortunes. “We are now focussing on non-voice services and will restructure the business. A new plan for the business will be announced by July,” HCL Technologies CFO Anil Chanana said when the parent declared its quarterly results.
Rahul Singh, who has the experience of running Citi’s captive BPO unit — later sold to TCS — will face a tough challenge to bring HCL BPO back on track. The unit’s January-March 2010 revenues fell 18% while gross profit for the same period declined to Rs 42 crore from Rs 102 crore in the previous corresponding period. Its headcount dropped to 10,205 employees for the quarter to March 31 against 11,426 people in the same period previous year. Taking expenses and depreciation out, the firm actually made a loss of Rs 22.5 crore.
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