The Hindu Business Line : Secova eServices buys US firm

Mr Venkat Tadanki,Co-Founder and CEO, Secova eServices Ltd; flanked on the left by Mr.V. Chandrasekaran, Vice-President, Technology and Infrastructure; and on the right by Mr Sanjeev Misra, V-P, Operations; at a press conference in Chennai on Tuesday. - - Shaju John

Chennai , Aug. 10

Secova eServices, the Chennai-based human resources business process outsourcing firm, has acquired EmpactEBS, an American firm that is into benefits processing, according to Mr Venkat Tadanki, co-Founder and CEO. Mr Tadanki, declining to give the exact size of the deal, said the value was sub-$5 million.

Through the acquisition, Secova brought into the firm about 60 employees and 15 customers of Empact, which has been in business for over seven years. Secova's staff strength is now about 90, of whom about two-thirds are working in the US and the rest in Chennai. By the year-end, Secova will have about 200 employees, 80 per cent of whom would work in India and the rest in the US. The company has development centres in Chennai and in New Jersey, US, Mr Tadanki said at a press conference here today.

The acquisition will provide impetus to Secova in its customer acquisition initiatives in the US. Using Empact's service model in benefits administration coupled with Secova's offshore outsourcing expertise in Human Resource and payroll, the new entity will extend a broad range of HR and benefits services including. health and welfare and pension benefits.

According to him, various research firms, including Gartner, have projected the size of the global HR BPO market to be about $40 billion, with a 14 per cent annual growth. Secova would focus on mid-size companies withupto 20,000 employees.

The HR BPO market from the segment was about $20 billion, he said.

More Stories on : Mergers & Acquisitions | Outsourcing | Human Resources

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