Q&A: Rajesh Subramaniam, deputy MD and CFO of Firstsource

Q&A: Rajesh Subramaniam, deputy MD and CFO of Firstsource

In a recent interview, Rajesh Subramaniam, deputy MD and CFO of Firstsource, discussed the headwinds facing the Indian BPO industry elaborately. Nevertheless, he also predicts investor interest returning to the sector, going ahead. Excerpts.

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Goutam Das
  • Mar 15, 2012,
  • Updated Mar 15, 2012 12:04 PM IST
In a recent interview, Rajesh Subramaniam, deputy MD and CFO of Firstsource, discussed the headwinds facing the Indian BPO industry elaborately. Nevertheless, he also predicts investor interest returning to the sector, going ahead. Excerpts. From a long-term horizon, it is still an attractive industry to invest. My customer contracts are annuity. I don't have uncertainty of revenue. IT services has to hunt and kill more frequently than BPO which is like a feast that goes on. This is not a 40 per cent return on equity business. But can I generate 20 per cent going forward? Yes. Can I grow at 20 per cent CAGR over the next 5 years if I get all my ducks aligned? Yes. The lack of investor interest has gone too far to the left. In 2005, it was two far to the right. The interest should come back.  

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In a recent interview, Rajesh Subramaniam, deputy MD and CFO of Firstsource, discussed the headwinds facing the Indian BPO industry elaborately. Nevertheless, he also predicts investor interest returning to the sector, going ahead. Excerpts. From a long-term horizon, it is still an attractive industry to invest. My customer contracts are annuity. I don't have uncertainty of revenue. IT services has to hunt and kill more frequently than BPO which is like a feast that goes on. This is not a 40 per cent return on equity business. But can I generate 20 per cent going forward? Yes. Can I grow at 20 per cent CAGR over the next 5 years if I get all my ducks aligned? Yes. The lack of investor interest has gone too far to the left. In 2005, it was two far to the right. The interest should come back.  

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