MphasiS to have 25,000 employees in 3 years
Business Line - Aug 16, 2004

Pune: IT and BPO service provider MphasiS said here on Monday it will ride on a huge demand building up from its overseas clients and ramp up operations to touch the 25,000-employee mark in the next three years.

The company is preparing to kick off its third unit in the country by the end of the current year and has short-listed Chennai and Mangalore as possible destinations, the President, BPO operations, Mr Bhaskar Menon, said.

"We will set up a centre with a capacity of 3,000 people,'' he said, adding that the Pune centre, which currently has 2,100 employees would add 900 techies in the next few months.

The company is also scouting for business in the domestic market where it plans to provide services to global level Indian players, Mr Menon said.

"All our clients are now in the UK and US and it is time we looked at the domestic scene for business which is building up here,'' Mr Menon said. The company is simultaneously working on a major structuring as a part of which it is relocating key members of top management to its Indian operations.

"By bringing in our people who have put in long years overseas what we are trying to do is bring in international work practices, attitude and thought that will give us an edge in business and add value to our operations,'' Mr Sandeep Dhar, Chief Operating Officer, said.

The company is in talks with companies in Mauritius and Eastern Europe to commence operations to service clients in the region, Mr Menon said.

"We have a project plan ready for Mauritius where we can kick off in 90 days from signing up. In Eastern Europe, we have looked at Prague, Hungary and Budapest but the labour laws in these places are complicated, so we will look at it at a later stage,'' he said.

MphasiS already has a 70-people centre in Mexico where it offers Spanish language services to clients and it is now keen to explore business opportunities in the same space in China.

We are also on the look out for forays into sectors such as research, hospitality, healthcare, telephony and airlines, Mr Menon said.

"We are always on the look-out for mergers and acquisitions in the $10-20 million range, especially in areas where we do not have the domain expertise," he added.

Replying to queries about the situation in the US/UK where there is an ongoing campaign against outsourcing to India, Mr Menon said that demand for services in these countries was huge.

"Most of our clients (23 in the US, UK) have firmed up plans to put at least 3,000 full-time employees each in India over the next three years. With elections round the corner in the US, most of the companies are keeping their plans under wraps for fear of a backlash from the anti-outsourcing lobby, he added.

Meanwhile, with clients concerned about disruption of their business process continuity following the 9/11 terror attacks , the company, is now working towards a strategy where it will not have more than 3,000 employees in any single location/city.

"This is part of our new business continuity plan which is in keeping with what all the major players in this space are doing,'' Mr Menon said.