The Hindu Business Line : Giving business that edge of value

It was overwhelming to see row upon row of desk, each hosting a pair - comprising computers and human beings. The silence that pervades a floor hosting 650 young workers, with faces and thoughts focused intently on their PCs, is strange.

As you trudge through pathways between these desks, you sight your man just outside his corner office. Since we have heard so much about BPO work being done successfully out of India, eWorld wanted a peek into that world.

Hemant Kulkarni, Head of the Financial Shared Services group of SCOPE International, BPO arm of the Standard Chartered Bank, took us through his world — a world of numbers that added value to StanChart; members of his team - be they managers or entry-level workers - management dilemmas; and opportunities abroad.

Growing skills at every turn

Scope's financial shared services group started in India in 2002 and now has 300 people across 13 countries.

Why India? Kulkarni reasons, "In the realm of business, finance gets involved very quickly when a company wants to launch a new product or explore a new geography. This is thanks to our strengths in number crunching, financial modelling and the like."

In the case of StanChart, because of quick growth, finance did not have immediate access to resources in the various regions. India then became a location of choice because of the availability of manpower and the ability to access that manpower at lower costs.

Kulkarni is quick to clarify, "Cost is only one reason. But the advantage of having a shared resources centre is enormous. We add value to the group as a whole."

How? He explains, "We are involved with operations of StanChart in excess of 50 countries. The onus is on us to standardise operations so that we use resources optimally across the globe." According to him, the centre has been able to pick efficient processes used in one country and apply them for other nations where processes need to increase in efficiency.

Kulkarni concedes that cost arbitrage has definitely been a factor in the BPO boom. But setting up a hub such as the one he heads, BPOs have also been able to add value and provide capacity that was not there earlier. "We have been able to migrate work here. We have helped design new products and taken over new areas allowing CFOs to devote more time to important tasks," he says.

For instance, there are teams that provide accounting reports based on UK GAAP accounts and international standards, based out of Chennai. There are teams that provide ALCO (asset liability committee) reports for London. He says, with obvious pride, "There is skill enhancement that is going on here. We have also moved talent from here to other locations such as Singapore."

A hub of a difference

Giving an example of how having a hub has made a difference, Kulkarni points to how they have streamlined their travel claim process after examining the procedures and practices followed across different countries in South-East Asia.

He says, "We found that Hong Kong followed a practice of self-declaration and this was further followed by a 15 per cent sample check by audits. This was found to be working satisfactorily, and we are now implementing this across the group."

Interestingly, the headcount - at 300-odd for FSSC - has reached saturation. Kulkarni sees only about 40 or 50 people being added this year, an average of a 15 per cent increase, which is not too much, given the manpower additions by third-party BPO companies.

So much for the benefit to the employer. How about employees? What kind of educational qualification does Kulkarni expect from his recruits? Typically, chartered accountants, he says.

Leadership exposure

He says the BPO boom has certainly had its impact on his profession and that the role is getting redefined. As he points out, "The industry has given Chartered Accountants an opportunity and has forced them to develop leadership skills. Earlier, the `people' dimension was absent and the focus was more on being a numbers person."

Today, there are 90 CAs working in SCOPE. But it's not all CAs that he recruits now. "We typically recruit people with at least two years experience. But we now also look at graduates with a B.Com degree. We impart in-house training.

For, there aren't that many CAs available. Also, being a CA is not a precondition to growth in the organisation."

This also helps cut down costs.

Interestingly, career options go beyond just Indian shores. Between five and 10 people in his team have left for permanent foreign postings. "So, employees also look at such growth opportunities with a keen eye."

Rich experience

Kulkarni himself has worked with the who's who of the BPO world — American Express in Delhi between 1995 and 1998 and General Electric between 1998-2001. He also did a short stint as an entrepreneur in 2001-02 and then moved to SCOPE in 2002.

For Kulkarni, who was working in Motorola, soon after qualifying in his Chartered Accountancy exams, a career in BPO way back in 1995 was unchartered territory. But when he got a call from a headhunter, he was intrigued about the prospect of working for a back office operation, which involved exposure to other countries. He said yes, and hasn't looked back since.

bharatk@thehindu.co.in

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