Print

Comment

Email

Digg

Del.icio.us

Reddit

Twitter

The year signaled the coming of age for Hinduja TMTs BPO operations: it got demerged from the parent and the new entity, HTMT Global Solutions (HGSL), got listed separately on the Indian bourses. The demerger meant the emergence of a focused BPO player, besides proving the Hinduja groups growing confidence in this business. On its part, HGSL too, with over $100 mn in cash reserves, has embarked on a mission of scouting for new acquisitions, especially in the KPO space, and to add consulting capabilities.

The highlight was, however, the $30 mn acquisition of US-based AFFINA, that brought into HGSLs fold not only 65 clients, but also seven delivery centers across the US and Canada. This acquisition helped HGSL to scale up significantly with headcount getting doubled in one year. New verticals like consumer electronics, retail, FMCG, and government got added, and today it operates from fourteen cities, seven of which are in North America, one each in the Philippines and Mauritius, and five in India.

If the AFFINA acquisition was beneficial to HTMT Globals scale-up in the short run, its adverse impact was to make the company even more dependent on the US market. And, with dollar depreciation now more than a passing threat, the new adult entity could soon land in trouble. Most of its competitors have already ventured into Europe, and even though the company is now actively scouting Europe and Latin America for acquisitions, it is already a little late. However, the domestic business is now significant, accounting for more than 15% of its total revenue. That is a high-growth area.

Also, AFFINA, though it has given scale to the company, is primarily a voice-based business, where margins are a challenge. That explains why HTMT Global forayed into legal services with the formation of Centric LPO, a JV with UK-based Centric, in association with Fox Mandal Little, one of Indias oldest legal firms.

With as many as four CEO changes in the last five years, there was little stability at the top. However, Partha Sarkar, who had been operating as the COO before he took over the top post, has been with the company for some time and can provide the much-needed stability. DQ

Page(s)   1