Sundaram Finance BPO arm Targets Singapore market

Sundaram Business Services (SBS), the BPO arm of Sundaram Finance Ltd., has announced that it will be targeting the $550m Singapore BPO market. As a first step, the company has announced the opening up of an office there.

Sundaram Business Services had recently announced plans to expand its presence in the super-fund administration outsourcing space in Australia whereby it expects to service over 2000 funds in the next 12 months.

With a strong focus in the BFSI space, SBS' 'Non-Voice' support service offerings include high end accounting services, credit processing, deposit processing, employee administration and insurance related processing services.

On the reasons for targeting the Singapore market, P.S. Raghavan, Executive Director and Head, Sundaram Business Services said, "Quality of service is a prime consideration for Singapore companies in the choice of their outsourcing partner. It is estimated that Finance and Accounting (F&A) outsourcing is expected to be the most active area in Singapore with a potential of over $250m."

"Our stated intent is to expand in our chosen areas of business- Insurance and Accounting & Payroll. With SF Group's unique understanding of the financial services space, with its five decade expertise, and our core values of transparency, fair business practices and outstanding customer service and 'do what you know best' philosophy, we believe we are well positioned to leverage our strengths to tap into the F&A outsourcing market in Singapore. "

Currently, SBS has overseas presence in Australia and UK, where it has outsourcing engagements with Total Super, one of Australia's leading self managed superannuation fund (SFMF) administration firms, and a leading well established accounting firm in the UK.

SBS is in the process of hiring over 200 professionals, including qualified accountants and management graduates, this year. Sundaram BPO currently has over 450 employees housed in a 30000 sq. ft BPO facility in the heart of Chennai as well as subsidiary facilities in Mumbai and Delhi.

On the outlook, Harsha Viji, Senior Vice President, Sundaram Business Services said, " Singapore is a mature market with a high growth potential. Our expansion into Singapore is in line with our plans to aggressively target select overseas markets, which offer us opportunities in our niche area of operations, and coincides with the growing recognition of our BPO services in the APAC region."

SBS, which began in 2001 as a captive BPO for Sundaram Finance, has expanded its business to external clients who now account for over half of the business. In India, SBS has over 10 customers.

Sundaram Finance ended FY06 with disbursements of Rs. 3422 crores and a Net Profit of Rs. 170.59 crores (including a one time income).