Hinduja Global acquires Mphasis' India BPO biz for Rs.17cr

BANGALORE, INDIA: Mphasis has signed a definitive agreement to transfer a significant portion of its domestic business, subject to regulatory approvals, to Hinduja Global Solutions (HGS).

The business had revenues of about Rs. 140-160 crore and has now been sold for Rs.17 crore to HGS. All the 7,000 employees of the company will now be transferred to HGS.

Analyzing this major business decision of Mphasis and how this strategy will help in driving the company's road map,  Thomas George, sr. vice president & head – CyberMedia Research & Services Ltd.(CMR), said, "It’s a wise move from Mphasis so as to focus more towards their strategic and growing business around Digital, GRC and Mortgage. As a part of this transaction they will be selling off 2.3pc of their overall revenue  which is 25pc of their India business  and close to 40pc of their “Customer Services” business."

"The business sold is more a voice based Customer Services business which anyways is not a growing and lesser margin. We feel Mphasis might exit from voice based services business  in a phased manner."

Ganesh Ayyar, CEO of Mphasis, said, “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.”

“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.