The New York Stock Exchange-listed global business process management (BPM) services provider WNS is looking at acquiring companies specialising in domains like consulting, financial services and actuarial services. “We continue to be opportunistic and are looking at specialised players in areas like consulting, financial services and actuarial services for acquisitions. Having said that, we have done two big-ticket deals this year and it is too early to talk about anything afresh,” said Keshav Murugesh, WNS chief executive officer.
The company, which started operations in 1996, has had a healthy acquisition strategy since inception and has done more than 10 acquisitions to provide strength to its offerings. As part of its strategy to provide more specialised offerings to its client in various verticals, WNS has already done two major acquisitions in 2017. In March this year, the company announced its largest buyout deal worth of about $95 million wherein it bought US-based HealthHelp to strengthen its healthcare and insurance verticals. It had also acquired strategic procurement BPM solutions provider Denali Sourcing Services for $40 million.
WNS ended Q1 of FY18 with $194.5 million in cash and investments and $116.9 million of debt. Some of the major industry verticals WNS operates in are travel, insurance, banking and financial services, manufacturing, retail and consumer packaged goods, shipping and logistics, healthcare and utilities. The company operates in about 13 countries and has over 52 delivery centres and employs over 34,789 people. For the first quarter of FY18, WNS had reported a revenue growth of 21.7% at $180.1 million as against the same period last year. It also reported a profit of $16.7 million for the April-June period.
Going forward, the company is witnessing a strong deal pipeline. WNS said there will be more outcome relationships with the clients as against the traditional model of billing. On the impact of automation in the industry, Murugesh said people need to get skilled. “In the last fiscal we have grown about 16-17% in revenue, but our workforce grew only about 9%. This means the addition of people will not be directly related to the revenue growth. But with changing technology we will be creating more jobs,” he said.
– Pradeesh Chandran