With the booming BPO sector, the concept of initiating franchise contracts to expand is a unique idea. Industry giants, Reliance World and the Aryan Group have come up with the unique strategy to expand the BPO sector via franchising. In an interview Deepak Kapoor, Director- Corporate Affairs, Aryans Communication Link (P) Ltd shares with us this unique and inviting concept.
Abha Garyali (AG): Share with us the journey of Aryans Communication.
Deepak Kapoor (DK): Aryans Communication Link is a privately held organisation started in the year 2002 at Bengaluru, with its operations in the National Capital Region. After successful operations for six years, in the US mortgage and banking sector, the company is restructuring to gear up after the effects of the global recession. We have recently restructured our entire business strategy and operations. One of the most innovative Infrastructure outsourcing contracts in the BPO industry has been signed up with a technology giant, Reliance World which is going to provide us with complete infrastructure to run our BPO operations across the country with a commitment of 1,000 seats over the next three years.
AG: What inspired you to start the unique concept of franchising in the BPO sector, especially in smaller towns?
DK: We have been studying the Indian markets for quite some time. There is still a lot of untapped potential in franchising of the BPO domain. Not many players have had the unique idea to franchise in the BPO sector, which has a great scope in India. Moreover, tying up with ‘Reliance World’ and getting their brand name was an added advantage for us to start franchising. Regarding our plan to franchise in smaller towns, I have seen that there is a lot of potential in the people of tier II and III cities and smaller towns. The youth of these small cities and towns had been leaving home to find opportunities in other cities. Most of them find suitable jobs in call centres. We with the support of Reliance, who have their Reliance Web outlets across small towns, hope to offer these youngsters the perfect opportunity to find suitable jobs in their home towns. Moreover, this can also be the perfect opportunity for ‘Aryans Communication’ to make a mark in the Indian BPO industry.
AG: What was the major reason for tying up with the industry giants ‘Reliance’?
DK: Tying up with Reliance was the best way of expanding our BPO centres to provide franchise opportunities across the country. Today, I can say that the best infrastructure of the country can be provided to our franchisees by Reliance World. Reliance Webstores will offer:
AG: What strategies have you adopted for expansion of the BPO sector?
DK: The best strategy to employ at the present time is to initiate franchising. ‘Aryans’ has taken this big step towards expansion of the BPO sector and hope to achieve its goals soon.
AG: When did you start franchising? How many centres do you have at present?
DK: Aryans BPO entered into exclusive infrastructure leasing arrangement with Reliance in 2009. Till now we have two running franchisees, one in Chandigarh and the other is in Gurgaon. The third one has recently come up in Belgaum, in Karnataka. These have been running profitably since the last three months. These franchisees have also increased the profit margin of the company by 20.3 per cent.
AG: What are the future target locations for your expansion?
DK: The Reliance World has 240 outlets in 104 cities, which includes tier-II and III cities as well as in small towns. In the state of Punjab we are eyeing 12 outlets in towns like Patiala, Ludhiana, Barnala, Jalandhar etc. Therefore we plan to expand pan-India in all metros as well as smaller cities and towns.
AG: How much does a franchisee need to invest in the BPO franchise? What is the breakeven period?
DK: An aspiring franchisee needs an investment ranging from Rs 18 lakh to Rs 30 lakh, depending on the size and location of the outlet. For an 18 seats BPO the investment would be Rs 18 lakh which would include the cost of infrastructure, technology, support and training etc.
AG: What kind of training and support would you offer to your franchisees?
DK: Aryans Communication Link Pvt Ltd will offer:
AG: What kind of background is necessary for securing a franchise of your company?
DK: In the initial phase we are looking for young people who are technological savvy and have a good educational background. They should have some prior experience preferably in sales and marketing and should have a sound financial background. In the second phase we would like to recruit housewives and retired people who have the capability and the aspiration to run a BPO. The franchisees need to have an in-depth knowledge of their local area also.