In an interaction with Akshay Chhabra, Managing Director of One Point One Solutions

We have invested heavily in building a strong sales and operations team, and see a strong business in markets such as the USA, Australia and the UAE, states Akshay Chhabra, Managing Director of One Point One Solutions

In Q4FY23, the company’s revenue from operations surged by 2.97 per cent, while the net profit zoomed by 104.86 per cent. What were the contributing factors to the company’s performance? 

We have delivered good growth rates in the overall profits of the company, which has increased both operational level and PAT level margins.

We have been working on providing solutions which optimise costs for clients and increase our margins as these are unique solutions, we provide to make sure that it would be a win-win for both of us. The whole industry is moving towards this model of providing optimal solutions using many technological and advanced tools to provide structured delivery which would not only deliver next-level solutions at best costs.

The profile of the clientele has changed from telecom & DTH concentration to BFSI, which has contributed to the profitability growth. Currently, more than 55 to 60 per cent of the revenues come from BFSI and the revenues from Telecom and DTH has come down to 5 per cent of the revenues.

The higher utilisation of overall capacity we have also gave us the edge on margin improvement.

The company has expanded its BFSI business by adding marquee client Kotak Mahindra Bank. Are there any future plans or collaborations in the pipeline for the company's BFSI business after partnering with Kotak Mahindra Bank? 

We have had our expertise in the collection portfolio business for more than a decade and we have signed prestigious clients such as Kotak Mahindra Bank and other marquee clients in the segment. These additions reinforced our credentials of being a major player in the BFSI segment. Apart from the BFSI segment, we have also added clients in the new-age tech and utilities space. Even our seat utilisation and realisation have gone up and with increased contribution from a high-value business.

At the moment, what are your top 3 strategic priorities? 

The first is to expand our presence overseas with expansion in the USA, UAE and Australia. This will help us build a sizable international business with better margins. 

We have hired top professionals from the industry to drive our growth. This is extremely crucial as having a sound team provides the company with immense talent. Industry veterans from Sutherland, TCS, Teleperformance etc., have been inducted into the company and they come with rich experience and they are very well-networked to strike deals and win new businesses.

In the domestic space, we are pitching for more value-added business. We have five locations across the country and we plan to optimise the capacity and thereby increase our turnover and profitability. Further strengthening our BFSI offerings to capture market share and good growth numbers during the current year.

What is the current competitive landscape for your company, and what are your plans for enhancing your competitive position? 

We are the only listed domestic company with the size of its own. This business is growing and there is an increase in business as companies see cost savings in outsourcing operations. There is enough scope for everyone to co-exist and there are huge opportunities for all the players in the business.

According to a NASSCOM report, the Indian BPM industry with revenues at USD 44 billion, experienced double-digit growth of 14 per cent in 2022, as compared to 2021. It added that client expectations from BPM services are evolving rapidly. Nearly half of the enterprises’, strongly view their BPM relationships as shifting from transactional relationships to one strategic business partner.

Can you provide more details about the company's expansion plans in the USA markets? 

As a leading provider of Business Process Management (BPM) solutions, we have set up a wholly owned subsidiary company in the US named One Point One USA Inc, in the state of Delaware, USA. The company has hired consultants for the US market and we have identified small and medium enterprises across all industries in these regions that can benefit from BPO services.

We have invested heavily over the last one year in building a strong sales and operations team. We see strong business in markets such as the USA, Australia and the UAE. We have partnered with lead generation and research firms in the USA for signing clients.

According to Global Data, the Business Process Outsourcing market size is valued at USD 339.3 billion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 2.8 per cent during 2023-2026. Cloud computing is another technology that has fuelled the adoption of BPO services as it enables BPOs to offer business processes and IT software as a service.

Globally, corporates are cutting costs and getting rid of non-core activity, this will lead to an increased deal pipeline and higher conversion ratio for One Point One in the USA and in other international markets.