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

The acquisition of new clients, increasing seat utilisation and the rise in the share of business from existing clients were the main drivers of the rapid development. Because of higher seat occupancy across all sites and increased efficiency, we have been able to increase our profit margins, asserts Mr Akshay Chhabra, Managing Director, One Point One Solutions.

1. What is your outlook on the Indian IT-BPM sector?  

The IT-BPM sector in India accounts for 8 per cent of the country's GDP. With 4.14 million workers, the industry is the biggest employer in the private sector. In India, this sector accounts for 55 per cent of the total outsourcing market. Investments in the IT sector are made easier by benevolent government policies and incentives. The country now features a number of IT centres because of the quickly expanding metropolitan infrastructure. The overall revenue of the IT-BPM sector (excluding e-commerce) surpassed the $200 billion threshold to reach $227 billion in FY2022. In FY2022, it is predicted that this sector will generate close to $ 178 billion in export revenue (excluding e-commerce).  

The outlook for this sector is definitely positive with a boost from the government as the amount allotted for the IT and telecom sector in the Union Budget 2022–23 was Rs 88,567.57 crore ($11.58 billion). The government has also established the Software Technology Park (STP) Scheme, a fully export-oriented programme for the creation and export of computer software, including the export of expert services via physical or electronic medium.    

India is the most popular offshore location for IT companies worldwide. Emerging technologies are now opening up a whole new range of options for leading IT firms in India.

2. One Point One Solutions has recently made a strategic alliance with Bahwan Cybertek. What are the synergistic benefits that this alliance will bring about to both enterprises?  

Through our strategic alliance with Bahwan CyberTek (BCT), a global provider of digital transformation solutions & services, we will pool combined resources to provide services for digital transformation, such as smart follow-the-sun virtual customer service and cloud-managed services.  

Clients will benefit significantly from BCT's extensive subject expertise, experience, technological prowess in comprehensive cloud management services and One Point One's world-class infrastructure & processes.  

BCT's AI/ML, cybersecurity, and automation know-how will be complemented by One Point One's Network Operating Centre (NOC) and tested Virtual Service Desk capabilities to create managed services that are prepared for the future. Through virtual SaaS-based customer service, integrated capabilities will assist enhance service delivery and support BCT's exponential expansion in the Middle East and North Africa (MENA) area, we for ourselves will benefit from a strengthened portfolio and by offering a value proposition to our clients worldwide.    

3. The company has reported an operating profit margin of 23.20 per cent in Q4FY22 as compared to the operating profit margin of 7.21 per cent in Q4FY21. Can you explain the factors that helped achieve such a stellar performance?  

The acquisition of new clients, increasing seat utilisation and the rise in the share of business from existing clients were the main drivers of the rapid development. Because of higher seat occupancy across all sites and increased efficiency, we have been able to increase our profit margins.  

Since the economy opened up and every industry is concentrating on gaining new clients and improving the experiences of its current clients, there is a rising need for BPM services. Since demand for our services strongly correlates with development in the service sector, we would stand to gain the most from the fastest-growing Indian economy.  

4. What are your top three strategic objectives? 

Our top three strategic capabilities are as follows: 

-To grow at 30-40 per cent CAGR over the next five years.   

-Target global clientele increase revenue shares from international business thereby, increasing capacity utilisation.  

-Increase domestic business capacity utilisation, the share of government business and high margin billable hours.    

5. What are your plans to expand the delivery centres in the country in the next 2-3 years?  

Currently, with our offices in Mumbai, Gurugram, Bengaluru, Chennai, and Indore, we have 5,500 seats available on a one-shift basis. By the conclusion of the current fiscal year, the present capacity utilisation level, which is 3,500 seats, is anticipated to exceed the ideal level for one shift.  

Depending on the demand scenario and onboarding of global clientele, there is adequate potential for development to double the existing capacity to 11,000 seats, working two shifts.