BPO companies show the sector has been quite resilient

The latest quarterly results of the BPO companies show the sector has been quite resilient in the face of multiple challenges: strengthening rupee, subprime problems and a possible demand slowdown in the US. However, high attrition rates, in excess of 50% in some cases, continue to be a serious concern for the industry. The listed BPOs that are delivering services primarily from India — Genpact, WNS, EXL and Firstsource — have notched up good sequential and year-on-year growth in revenue.

The bottom line, too, has grown well except in the case of WNS, which has taken a one-time hit due to its client mortgage lender First Magnus Financial Corporation going bankrupt. The BPO companies have managed to contain the currency risks largely through hedging. Genpact, for instance, is substantially hedged for its rupee costs for 2008 and 2009.

Geographical diversification has helped as well. Firstsource now has a better revenue split with the share of the US and UK coming down to 45% and 42% respectively, and that of India going up sharply to 13.2%. Most companies in the sector have even managed to improve operating margins.

BPO - Acronym & Definition

There may be many popular meanings for BPO with the most popular definition being that of
Business process outsourcing or Business Process Outsourcer

OTHERS
Acronym Definition

BPO	Baltic Ports Organization
BPO	Bank Payment Order
BPO	Bartlesville Project Office (US DoE)
BPO	Base Post Office
BPO	Base Procurement Office
BPO	Basic Postflight Operations
BPO	Basic Protection Officer (International Foundation for Protection Officers)
BPO	Benevolent & Protective Order (of Elks of the USA)
BPO	Benzoyl Peroxide
BPO	Berlin Philharmonic Orchestra
BPO	Blanket Purchase Order
BPO	blood program office (US DoD)
BPO	Bond Pad Opening
BPO	Boston Pops Orchestra
BPO	British Post Office (British Telephone System)
BPO	Broker Price Opinions
BPO	Broker's Price Opinion (FNMA)
BPO	Buffalo Philharmonic Orchestra
BPO	Bundesparteiobmann (German; Austria, Europe)
BPO	Busch Post Office (Rutgers College)
BPO	Business Process Object
BPO	Business Process Optimization
BPO	Business Process Outsourcing