Hinduja Global Solutions (HGS) has acquired Mphasis BPO subsidiary MsourcE India for ₹17 crore, giving it access to newer service lines such as BFSI and telecom.
With this acquisition, HGS gets access to 7,000 MsourcE employees who service telecom and banking and financial services companies in India.
“The business environment in India is getting bullish and this acquisition gives us scale at a time when companies are getting back into investment mode,” said Partha DeSarkar, Chief Executive Officer, HGS.
This is the second acquisition that the company has made in the last few months when it acquired Colibrium, a company that provides cloud computing technology for healthcare market in the US.
Further, HGS also gets seven delivery centres across six cities – Noida, Raipur, Indore, Mangaluru, Pune and Bengaluru, thereby helping the company get a stronger delivery footprint in India, company officials said. Mphasis, which is owned by HP, has been struggling in its domestic business for the last several quarters as profitability in domestic deals were not lucrative when compared to that of other geographies due to rising costs and no currency arbitrage.
This partly resulted in the company’s operating margins to slip to 15 per cent, according to analysts. Mphasis does not disclose its BPO business revenues.
All that is starting to change and HGS sees this as an opportunity. Recently, DeSarkar told BusinessLine that e-commerce, Digital India and increased consumption of technology by start-ups is proving a catalyst for increased demand. “It is starting to pickup and we want to cash in on that,” he said.