Mphasis to sell much of domestic business to Hinduja Global


Mphasis, a leading IT services provider, said it has signed a definitive agreement to transfer a significant portion of its domestic business, subject to regulatory approvals, to Hinduja Global Solutions (HGS), a global BPM leader in optimizing customer experience for clients.

In a separate statement, HGS said the move will add 7,000 “customer experience professionals” to its rolls and seven delivery centers across six cities – Noida, Raipur, Indore, Mangalore, Pune and Bangalore.

HGS is a BPO provider that gets most of its revenue from North America. India accounts for only about 8% or so of HGS’ revenue. The deal would boost its India revenue. Mphasis said the deal was inked to help it focus on its key strengths and overseas clients.

“Focus and specialisation will be key to success in the new Digital world. I am happy to see that with this agreement, Mphasis will further intensify our focus in Digital, Governance Risk and Compliance (GRC), Application Maintenance Services (AMS) and Infrastructure Services (IS). HGS’ specialisation will bring excellent value to the in-scope domestic customers and employees in India,” said Mr. Ganesh Ayyar, CEO of Mphasis.

“Our employees have found a new home in HGS and will play a pivotal role in augmenting their India footprint. A dedicated unit has been set up to ensure smooth transfer for all employees. There would be no loss of jobs or headcount reduction,” said Elango R, Chief Human Resources Officer and Head Emerging Geographies Business Unit of Mphasis.

HGS operates on a global landscape with over 28,000 employees in 60 worldwide locations. For the year ended 31st March 2015, HGS — part of the multi-billion dollar Hinduja Group — had revenues of around US $ 458 million.

Over the last few years, HGS was forced to downsize its India business, which was largely driven by telecom outsourcing (customer contact centers). HGS downsized its India business due to low realizations and margins in the Indian domestic outsourcing sector, particularly telecom.

However, the company had recently said that it would try to regrow its India business with a focus on margins.

“We see an environment of bullishness in India where companies are getting back into investment mode and looking for ways to enable higher growth. This acquisition is opportunistic and fits well into our growth plans. It adds scale and a wider footprint even as we enhance our capabilities and gain an outstanding team of domain specialists to cater to our clientele.” Said Partha DeSarkar, Chief Executive Officer of HGS.
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