NIRVANA BPO: If anyone grows too fast, he is compromising

Nirvana is more than two years old. But its growth is slower by the
industry's standards....

This is planned approach. You can either grow rapidly without building adequate
capability and then slow down; or follow a strategy centered around sustaining
year-after-year growth. We wanted to build certain capabilities, which we
thought were absolutely essential.

We spent almost two years in building our core. Investments in the operating
platform have been huge in this period. This made us assemble one of the best
teams in the business, and offer better scale and operating depth. It would be
wrong to say that we were late in getting work, we were slow but not without a
purpose.

I believe amortization of platform over which everything works is the key to
success and the industry is also realizing it today. Now that we have our
processes in place, we expect explosive growth next year.

But what about lost time?

There is a maximum rate that one can grow at. If anyone grows faster than
that, then he is compromising somewhere. Many BPO companies in India do not have
a strong middle management. This has created a situation where a disaster is
just waiting to happen. At Nirvana we have tried to avoid the trap and
consolidate before increasing the sustained rate of growth.

So what is next?

At present we have a 500-person team involved in 17 processes of six
customers, spread across tech support, transition management, and consumer
finance. By first quarter next year we expect to breakeven. We are looking at
expanding to two more locations in India and another in East Europe. And, we
would also hire 1000—2000 persons next year as part of our expansion plans.

What do you think about other companies?

Initially, there was a rush to gain customers and ramp up the business; and
BPO companies-even some of the larger and successful ones-have expanded
without building on their core. This led to low level of customer satisfaction,
as these companies were unable to keep pace on the scalability part. But things
are changing now. This fast-growing industry is running to keep itself intact
and not fall apart. Companies are now trying to integrate their operating system
with those of the clients. This will help them to tackle the scalability issues
and also serve the clients better.

The industry is growing at 30—40 percent, which is good but not really
extraordinary. Where is the 'immense opportunity' we have been hearing
about?

As I told you earlier, there is a natural pace at which any growth is
possible. It should not be seen as a lack of confidence. From service delivery
point, it is difficult to grow beyond that rate and still maintain quality. I
see it as a good sign.

Anurag Prasad