SMEs need to find a niche for themselves, says Genpact's Pramod Bhasin

In order to deliver excellent services to clients and edifying a influential position in the market, the small and medium enterprises (SMEs) should focus on building real expertise, said Pramod Bhasin, the non-executive vice chairman and former president and CEO of Genpact in an exclusive interview.

 

 

Where are you right now in your business process management (BPM) journey?

 

Pramod Bhasin: The BPM journey is still in its infancy. There are a few clear reasons for this. Clients are just beginning to realize the full potential offered by companies that deliver BPM services, which one day will be bought just as you might buy manufactured parts or courier or banking services. The penetration levels into these services is still very low both in terms of usage by individual customers as well as by geography. In addition as the service providers mature and build real expertise in their chosen areas, the value they can deliver to customers will continue to increase. BPM is a relatively new science and we will be able to pioneer a new way of managing business processes for the world.

 

 

 

What are key challenges that SMEs face in the BPM sector today? What should be done to overcome the same?

 

Pramod Bhasin: The key challenges that SMEs face in this area are go to market and finding the right niche to play in. SMEs need to find a niche for themselves - there is no point trying to imitate companies many times their size but they must use their own nimbleness and speed and ability to serve a unique set of customers really well, to carve a place for themselves. Going to market and reaching customers across the world is also expensive and hard to do for people without that experience - so partnering with businesses or individuals who are based where the customers are can really help accelerate the process of finding customers and working with them over the long term. This is not an area where SMEs, even though they are strapped for cash, should try and save expenses- this is compulsory and needs careful thought and attention.

 

 

 

What kind of opportunities exist for them?

 

Pramod Bhasin: The opportunity for SMEs in the area of BPM is enormous - there are so many niches and areas of expertise that can allow them to build a business and deliver excellent value and information to customers - such as Analytics, or Supply Chains, or Legal Support or SOX compliance. There are many more areas which provide really compelling opportunities. SMEs must really focus on building real expertise so that they can deliver value to clients which customers may not be able to do themselves.

 

 

 

What importance a specific marketing strategy holds in a business?

 

Pramod Bhasin: SMEs must have very focused marketing strategies built upon a clear set of expertise or niche services they plan to offer, given limited funds you have to optimize the strike rates with which you win clients and cannot afford to be broad and generic in their marketing efforts. However all marketing has to be built on a foundation of real value - if not it can't sustain any momentum. Building real expertise and then picking customers who can really use your services and then delivering excellent service to them can be extremely rewarding. Finding innovative ways to get to market can become a real differentiator as they compete for customers.

 

 

 

How do you observe the growth of Indian economy at the moment?

 

Pramod Bhasin: The overall lack of growth of the Indian economy has really hit the SME sector hard but the situation is now improving and will give rise to plenty of opportunity be it in the area of skills or energy or healthcare and many more. I do think the worst is behind us as the Governmentt seems to be getting its act together. All companies across the world will increasingly focus on the SME sector - in the past, it has been the cost of acquiring each new customer and the relative lack of profitability from the SME sector that has held businesses back - but now with the advent of 4G, social media and increased digitization this will change.