PRAMOD BHASIN: I remain convinced that one day this industry (the BPO sector) is going to become India’s largest private-sector employer. Unlike the information technology industry, we take people from all backgrounds for every type of work. It involves back-office as well front-office work and I think the range of opportunities that it presents to a country is phenomenal. At Genpact, we have all kinds of people — economists, MBAs, PhDs, and simple graduates with English and math skills. We then provide them training for voice skills, accounting, and even U.S. GAAP (Generally Accepted Accounting Principles), because there is no other way you can get trained resources. We have around 300 trainers and virtually run a small university.

The industry is booming and it will continue to boom. It has changed the way companies work. I think there is scope for moving up the value chain and in building real competencies. On the opportunities front, I feel that globally, this industry would be in the range of $ 200-300 billion. So, we have barely scratched the surface. Talent and infrastructure is clearly a big challenge.

• PRAGATI VERMA: You say talent and infrastructure are your biggest challenges. What about rupee appreciation?

It’s not that much. It’s an old phenomenon. When I went to England to study, the pound was worth $ 2.41. It dropped to $1.31 and later went back up to $ 2.10. These things happen. It is a challenge, as it puts pressure on our costs. But there are multiple levers for increasing productivity. There are other costs we can reduce, like telecom and hiring costs. I also think that people worry about the differentiation in salaries going down, but there is some simple math I will do for you. If I were to give a salary increase of 15 per cent to someone who earns $ 3,000-4,000 a year, it’s about $ 600 a year. That is still lower than a five per cent salary increase to someone in the U.S. who earns $ 40,000 a year in absolute terms. So the gap continues to expand for a period of time. There will be pressure, but it is manageable.

... contd.