Business process outsourcing firm Hinduja Global Solutions Ltd is planning to expand in the US and Europe through acquisitions. It is also contemplating a joint venture in China.
The company currently has $110 million cash on its books. It is looking at buying two companies in the US and Europe, each worth around $50 million to $70 million. ?We are looking at the US market and also Europe, mainly the UK, as we do not have a presence in that country. We are seeking acquisitions in these regions and hopefully will be there by the end of this year,? said Anand Vora, CFO, Hinduja Global Solutions.
The company is also targeting tier II cities such as Nasik and the regions around Delhi.
?It?s time to move to tier II cities in the country. You get a good amount of talent pool there at a lower rate as compared to the metros. Moreover, the attrition rate is also much lower in these locations,? said Vora. He added, ?However in recent times, the attrition rate in general has gone down and hiring has also taken a dip.? Currently, the company has a headcount of 14,100, which could rise to 14,500 by the end of March. The domestic market, which contributes around 20% to the company?s total revenue, has seen a slight downturn.
?Though we have not seen any major impact of the global slowdown, there has been a slight fall in the domestic market, mainly in the outbound service segment which constitutes around 20% of our domestic operations. Inbound services, on the other hand, contributes the remaining 80%,? said Vora.
The company is also expecting revenues for 2008-09 (Apr- Mar) to touch $200 million, up from $160 million during the previous year. So far, this financial year, the company has posted revenues of $140 million.
