The Hindu Business Line : US equity firm invests $30 m in Sutherland

OAK Investment Partners has invested $30 million (around Rs 130 crore) as equity funding in the US-based Sutherland Global Services Inc, a global business process outsourcing (BPO) firm with operations in the US, India and Canada.

The US private equity firm, with a total of $4.2 billion in committed capital, has taken a minority stake in Sutherland, said Mr Dilip R. Vellodi, Chairman and CEO, Sutherland Global.

Mr Vellodi holds a majority shareholding in the firm while employees' stake is about 10 per cent. Sutherland would leverage Oak Investment's track record in healthcare and retail, he told newspersons here today.

Sutherland would deploy the funds in infrastructure creation in India and meet the growth in the number of employees. The company's staff strength would increase to around 9,000 in 14-18 months globally, from the present 6,500. About 85 per cent of the recruitment would happen in India, especially in Chennai and Mumbai where the company employs over 3,200 professionals in its four development centres, he said. "India will be the engine of growth while we will continue to grow in other regions. However, growth in India would be at a higher pace," he said. The company has over 3,000 employees in the US and a few hundred in Canada.

According to Mr Vellodi, the company's compounded annual growth rate (CAGR) since its inception in 1986 has been about 40 per cent. The growth, globally, would be 30 per cent to 35 per cent, while in India it would be significantly higher. The company, which provides customer management services, including technical support and help desk for its customers, had revenues of about $150 million, he said.