Aegis plans to hire 11,000 this fiscal

Written by Rachana Khanzode | Mumbai | Updated: Jun 1 2010, 09:27am hrs
Essar Group-led business process outsourcing firm Aegis said it intends to hire 11,000 people in the financial year 2010-11. As many as 50% of these would be from outside India. The firm currently has more than 39,000 employees, and said it was witnessing a pick up in demand from the emerging as well as onshore markets.

Aegis managing director and global CEO Aparup Sengupta said, As clients are becoming more fungible to offshore locations besides India and the Philippines, and are also ready to pay accordingly, we intend to grow our base at locations other than India. This year, we would be hiring about 11,000 employees, of which about 50% would be located outside India. Aegis has a presence in locations such as the Philippines, Costa Rica, New Zealand, Sri Lanka, Australia and South Africa.

According to Sengupta, the firm was witnessing negotiation of contracts in the banking finance service and insurance (BFSI), travel and transportation and domestic telecom sectors. The pricing in the BFSI sector is under pressure. However, there is a price improvement in the healthcare space, he added. The BPO industry has been growing at a CAGR of 15% and is expected to touch $285 billion by 2020. We have been growing at a CAGR of about 50% and we expect a similar growth level this year too, adds Sengupta. The firm is not expecting any impact of the weaking Euro and the crisis in the European economy. CM Sharma, chief financial officer at Aegis, said, We are adequately hedged and about 60% is naturally hedged as we tend to spend in the same currency. We usually take a forward cover of six months to a year time frame and are reasonably covered. At the same time we are not witnessing any major impact due to the slowdown in the European economy.

Aegis has been talking about expanding its value chain by bringing new technologies, process management, engineering technology and other services. The firm on Sunday acquired 59.13% stake held by Avaya in the Bombay Stock Exchange (BSE)-listed global business communications firm AGC Networks (erstwhile Avaya GlobalConnect), for a sum of $44.5 million (Rs 206.19 crore), at Rs 245 a share, as it strives to boost its outsourcing services. The acquisition will bring a new set of technologies in the unified communications space for our clients, Sengupta said.

AGC Networks is a converged communication solutions provider focused on the Indian and Australian markets and employs nearly 500. The company had revenues of Rs 515 crore for FY09. For the quarter ended March 2010, the company had a net profit of Rs 9.3 crore, on revenues of Rs 138.48 crore. It is also a leading player in contact centres, unified communications and networking as solutions integrator with a roster of marquee clients and cutting edge products.