Bestpraktizes India (BPI), a division of the Bangalore-based Kamath's Corporate Outsourcing Services Pvt Ltd, has decided to cash in on the outsourcing wave.
While captive and third-party players mostly cater to foreign clients, BPI will focus on domestic outsourcing, specifically for small and medium enterprises.
In order to reach out to these SMEs, BPI has just tied up with Kerala-based, Rs 250 crore (Rs 2.50 billion) Manappuram group, a general finance and leasing company.
As a result, BPI will bring in the expertise and the processes required for domestic outsourcing, while Manappuram group will provide office space in various cities and a wide network of clients.
Currently, BPI is serving clients such as Alopa Networks, Deccan Media and Eduquity. Interestingly, some of its bigger clients also include Akzo Nobel, HSBC and Nokia. Having registered Rs 50 lakh (Rs 5 million) in revenues for the previous fiscal, BPI is confident of doubling its top line growth every year.
Even though Kamath Outsourcing began in 1999, the company was not able to scale owing to lack of funds. It has mostly been a family-run venture.
The tie-up with Manappuram group will help the company scale up operations.
Kamath's domestic division will leverage the latest business intelligence technologies to provide domestic companies services such as business advisory and consultancy, accounting, payroll and tax compliance, HR and statutory and regulatory compliance.
P Prakash Kamath, CEO of Bestpraktizes, said, "Indian SMEs have come of age. They do not want to invest in non-core activities. These companies have realised that by outsourcing such activities, they can can focus on growing their business. Our job is more on the lines of providing incubation to a lot of SMEs."
BPI will help clients identify the right business opportunity and help them go through the stages of incubation, stabilisation, consolidation and growth by a simple process of hand-holding and execution. The tie-up with the Manappuram group will provide access to about 25-30 clients.
BPI will initially serve SMEs in Bangalore, Mumbai, Delhi, Mysore, Chennai and Hyderabad.
BPI's opportunity represents the over 15,000 SMEs that have a revenue of Rs 1 crore (Rs 10 billion) plus as it feels that only such companies will be more inclined to outsourcing.
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