Japan’s Outsourcing Inc acquires majority stake in India’s Alp Consulting

Alp Consulting, Bangalore

As another evidence to the growing interest of the world in India’s rising employment market, Japan-based staffing firm Outsourcing Inc has acquired the majority stake in Alp Consulting, a Bangalore-based hiring firm which has provided employment to more than 4,000 employees in India. Outsourcing Inc paid $5 million which is equivalent to around 31.2 crores in Indian rupees for 51% stake in Alp.

History of Alp Consulting

Alp Consulting was set up in 1996 to provide staffing and human resources solutions to IT companies. It grew rapidly and spread its operations across six major cities in India – Chennai, Delhi, Hyderabad, Mumbai, Noida and Pune. When Outsourcing Inc started scouting for acquisitions in India last year, Alp Consulting’s name came up as one of the most lucrative candidates.

Outsourcing CEO expects Indian employment market to grow rapidly in future

When asked about his expectations from the Indian market, Outsourcing Inc CEO Haruhiko Doi said “Unlike Japan, India’s working population is set to grow up to 240 million in the next 20 years. We look forward to growing at a fast clip.” According to the data provided by Indian Staffing Federation, India is the third largest market for staffing services in the world behind China and Brazil. The current global staffing market value is estimated at a mighty $180 billion which is almost equal to INR 11.23 lakh crores.

Acquisition in tune with Japanese traditions

The deal between Outsourcing Inc and Alp Consulting valued Alp at 61 crore Indian rupees which is higher than what most US-based or Europe-based companies would have estimated. But Japanese companies are known to value companies at a higher rate than others. Ajit Isaac, the CEO of Ikya Human Capital Solutions, says “Japanese companies have been traditionally valuing companies at higher multiples than their United States and European counterparts. May be it’s the promise they see in the market”. Isaac had sold his company PeopleOne Consulting to Swiss staffing major Adecco in 2008 and bought Hyderabad-based hiring firm Magna Infotech for 100 crore Indian rupees in 2010.

Plans for the near future

The acquisition was done with the immediate goal of meeting the staffing and outsourcing needs for the Japanese MNC’s which are rapidly expanding operations in India. Outsourcing Inc currently provides services to 17 Japanese MNC’s and 19 overseas firms. Some of its clients are the Japanese giants like Suzuki, Toyota and Soni.

With this deal, Outsourcing Inc plans to start reaping the benefits of the already large and continuously growing Indian staffing market.




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