Inorganic Growth New ITES Mantra

New Delhi: | Updated: Apr 30 2002, 05:30am hrs
Several IT-enabled services (ITES) companies are taking the inorganic growth route to spread their wings at home and abroad.

Companies in the business process outsourcing (BPO) space like GE Capital India, Spectramind, Paras CallTech, as well as other ITES companies like Euro Info Systems Pvt Ltd and Polyplex Infotech Ltd are seriously considering the inorganic route to growth.

“Overseas companies are looking at Indian ITES companies to scale up their existing operations as these Indian companies already have most of the processes in place,” National Association of Software and Services Companies vice president Sunil Mehta said.

Leading ITES company, GE Capital India is also planning to adopt the inorganic route in the BPO space. This was confirmed by a highly placed source close to the company. However, the company did not officially respond to a fax sent by the paper.

Others like Spectramind are also keen on acquisitions but say they will strike when the iron is hot. “We are most certain to grow through inorganic route and are open to any win-win option,” Spectramind CEO Raman Roy said, adding that there were no immediate deals in the pipeline.

At present, Spectramind has about 1,800 seats and is looking at adding another 550 in the next 45 days. Of the $20 million raised from Wipro and ChrysCapital, Spectramind still has $4 million.It is looking at cash-and-stock dealstowards this end, Mr Roy said.

On the other hand, call centre consultancy firm Sapphire’s CEO Mahendra Saxena is of the opinion that consolidation and inorganic growth will majorily be centred around call centers. Outside the BPO space, Euro Info and Polyplex too are going inorganic. While Euro Info, a legal transcription and ERP implementation company, is looking at entering Europe through this strategic partner within this year.

Another company in this space, Polyplex is also looking at acquiring an US-based insurance company with a valuation going upto $5 million.

Polyplex recently turned profitable on an investment of Rs 2 crore, according to its CEO Deepak Kapoor. It offers solutions for companies in the publishing area and handles insurance backoffice activities for insurance companies.

Polyplex is not looking at external funding for its expansion plan but is looking at sourcing its acquisitions through internal resources and promoters.