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LESSONS FROM A SERIAL ENTREPRENEUR - RAMAN ROY
The
Learning Never Stops for an Entrepreneur...Be on the Lookout for
Opportunities
Listen
to the customer, and factor in their inputs. Get your pricing strategy
right. And remember, profits do matter
Raman Roy
CURRENT DESIGNATION
CMD of Quatrro BPO, Founding member of Indian Angel Network, member of
TiE Board
COMPANIES FOUNDED
Spectramind in 2000, Quattro BPO in 2006. Also set up American Express
and General Electric captive units in India
ONE THING I’D DO DIFFERENTLY
Leverage technology more
THE MOST EXCITING SPACE TO BE IN
Healthcare
Entrepreneurship is a lot like the stunts shown in a Pepsi or Mountain Dew
advertisement. The only difference is that the thrill of running one’s own
venture lasts much longer than a 30-second television spot. My
entrepreneurial journey started over two decades ago with American Express,
when I convinced my superiors — after persisting for a few years — to set
up a processing centre in India. Even then, I believed the country’s
workforce could produce superior quality work that was as good as the
output of their international counterparts — at a fraction of the cost.
Later, I set up GE Capital’s India-based captive unit. The monikers of
‘father of the Indian BPO industry’ or ‘pioneer of ITservices fuelled
revolution’ are not something I am comfortable with. It’s a double-edged
sword. I have been told on a few occasions that India’s youth started
getting too much money at too early an age. Kids have stopped applying for
Masters degrees, because of the earning potential. Although I was working
for my employers, I considered myself more of an entrepreneur. We set up
the multiple platforms and capabilities, and honestly, it was just like
setting up your own venture. There were a lot of sceptics initially.
Therefore, while the names backing us were large, the environment was that
of an independent venture. I was pretty much running my own show. The
captive units in India have saved Amex and GE over a quarter of a billion dollars.
But then, something happened. A fund manager pointed out to me what I had
created, but also asked a very pertinent question — what had I received in
return? Thus was born Spectramind, which I later sold to Azim Premji’s
Wipro in 2002 for $175 million. When I left Wipro BPO (as Spectramind was
re-branded after Wipro’s buyout) in 2005, it had almost 19,000 employees.
Selling out was the right decision, because this is a very capital-hungry
business, and they were the right partners. And that is classic
entrepreneurship — identifying a gap and then entering it, creating a
business model, getting customers, scaling the venture, and finally,
exiting at a premium. The learning never stops for an entrepreneur. I have
had the luxury to learn from one venture to the next. But there are a few
things I would change, if I could: access to technology, get better talent,
fine-tuning the process. Also, one should always be on the lookout for
newer opportunities. For instance, healthcare has a massive potential in India.
Even as the more economically advanced nations struggle to meet the medical
needs of their citizens, India can step in. The Indian healthcare industry
can provide opportunities worth billions to the insurance, financial
services and technology sectors over the next 5-7 years.
Here are Some Tips for Aspiring Entrepreneurs:
Create the Right Team:
Bring together a group of people with the right competence and
capability to deliver on schedule. India has a familyfocused
entrepreneurial mindset, which hasn’t changed for hundreds of years. Bring
in the professionals.
Set out a Common Vision:
People have to pull in the right direction. Listen to the customer, and
factor in their inputs. Get your pricing strategy right.
Profits do not Matter:
I disagree quite strongly with this notion. The customer pays your
salary. Therefore, being in loss for perpetuity isn’t the smartest move.
There has to be a path for profitability. Identify it, and work towards it.
Raising Money:
An entrepreneur has to have something to show before approaching risk
capital. A venture, which is barely off the drawing board, can’t ask for
too much. The entrepreneur, in that case, ends up losing leverage.
As told to Biswarup Gooptu
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