Spotlight on Infosys BPO and HRO: Growing, Growing, and Growing

Amy L. Gurchensky, HRO Research Analyst, NelsonHall

Since its inception 10 years ago, Infosys has experienced great growth and success. Its fiscal 2012 BPO revenues were $495m, more than tripling since the $147m it reported in 2007. To support its growing client list over this period, Infosys has nearly doubled its headcount to more than 21k employees and has added 16 international centers to the two centers it had in 2007.

 The company provides a balanced mix of horizontals from finance and accounting to sourcing and procurement to customer service, and of course HR.

In addition to its multi-process HR outsourcing (MPHRO) offering, Infosys’ standalone HR BPO offerings include:

  • Payroll
  • RPO
  • Learning.

The company has a very strong HRO client base in North America, which accounts for 45%. The remainder of its HRO clients are fairly distributed between Asia Pacific (30%) and Europe (25%).

While Infosys’ HR technology offering is very strong, its HR BPO business has been steadily growing, and the company is aggressive with its target revenues for HRO over the next few years. With its planned growth initiatives, I believe it has a very good chance of meeting its targets due to its:

  • High client retention rate
  • Ability to expand existing contracts to grow with its clients
  • Healthy pipeline with the possibility of a multi-process HR outsourcing (MPHRO) win in the near future.

My overall impression of Infosys at their recent analyst day was that they are genuinely nice warm people who really listen and are transparent. All qualities which I highly admire, and apparently qualities that are valued by two of its existing clients that came to speak during the analyst day:

  • A North American headquartered banking and financial services company
  • A U.S. headquartered media company.

Other reasons why these clients selected Infosys for BPO services included:

  • Executive attention
  • Trust to do the right thing
  • A broad offering for future growth opportunities
  • Flexibility
  • Technology capabilities.

The lesson reinforced by these clients is that organizations are looking for service providers who listen and genuinely understand them so together, they can create a strong, lasting partnership where both companies prosper in their respective area of expertise.

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