Intelenet Global to raise headcount
The company has earmarked funds worth $40-50 mn for its next spate of acquisitions, reports Prerna K Mishra.india Updated: Apr 07, 2006 00:50 IST
Intelenet Global Services-- the BPO owned jointly by HDFC and Barclays-- plans to ramp up its employee strength to 35,000 from the existing 9,500 in the next three years.
This will include growth of international operations from 4,500 to about 15,000 employees and adding another 10,000 employees to the domestic business.
Speaking to the Hindustan Times, Intelenet Global Services CEO Susir Kumar said, “Out of the 4,500 employees servicing the international business presently, 750 are servicing Barclays which is both an investor and a client. By 2009, we would have a total of 6,000 employees working on the Barclays account alone. The rest of the growth will come from third party clients who will also have the option of trading business with equity in our company. This would easily help us to ramp up to 15,000 by 2009.”
The company has earmarked funds worth about $40-50 million for its next spate of acquisitions after it picked up stake in Spanco Telesystems in India recently.
In the international space, while Intelenet will leverage the capacities being freed by Barclays in the UK, it will acquire a company in US in the next six months. “We are looking at US companies that are EBDITA positive and PAT negative where we can shift the back office to India and increase profits incrementally. While we will grow inorganically in US and UK, we would enter South Africa, Europe and China through buying excess capacities and entering into alliances,” Susir Kumar said.
The company has entered into an exclusive tie-up with Transcom in Europe that has 15,000 employees and operates out of 42 locations. Similarly, in South Africa, it is trying to leverage the excess capacity of Absa Bank that was acquired by Barclays recently. In China, the company plans to close an alliance in the next nine months to a year.
On the domestic front, the company recently acquired 51 per cent stake in Spanco Telesystems taking on board 5,000 employees working in the BPO division Sparsh of the company.
“Entry into the domestic market with the acquisition of Sparsh was inevitable in order to cash in on the burgeoning BPO business potential thrown up by Indian banking, telecom and card companies getting comfortable with outsourcing jobs. It also helps us supplement our foreign currency revenues with rupee earnings among other things,” he added.
In the next three months, the company plans to close one or two more acquisitions that will take the strength of the domestic business to 10,000. “It would be easy to add the next 10,000 from domestic market through organic growth by 2009,” he said.