Tech Mahindra acquires 100% stake in HGS BPO for Rs 484 crore

The software major and leading system integrator, Tech Mahindra has announced the acquisition of Hutchison Global Service (HGS), the BPO arm of Hutch.  Tech Mahindra which is a part of $ 15.4 billion Mahindra Group has signed a deal worth $87.1 million (Rs 484.03 crore) to acquire 100% stake in Hutchison Global Services.

Tech Mahindra acquires HGS. Bloomberg TV shot

According to the company sources, the deal will bring them in new revenue of $845 million over the next five years. This means the software major will see additional revenue of $170 million per annum. The deal would provide significant opportunity for Tech Mahindra to expand their BPO operations and will prove to be a key component in their business strategic plans for the future.  As per the industry experts, the new acquisition will allow Tech Mahindra to leverage the existing and acquired capabilities to provide services to varied customer base and industry verticals.

Tech Mahindra which is part of Mahindra Group was incorporate in the year 1986 as a joint venture between Mahindra & Mahindra and British Telecom Plc. They have been a leading global systems integrator for years and serves many Fortune 500 clients. They expanded their IT operation in 2009 by acquiring Mahindra Satyam which was earlier known as Satyam Computer Services.

Tech Mahindra which primarily focus on telecommunication industry has already set up their operation in more than 31 countries across the globe. Their business offering mainly include IT solutions, network technology solutions, BPO, BPM, cloud services and business transformation services to name a few. Among the BPO services they provide, they have been positioned as the leader in customer relationship management and other services include enterprise support services and consulting services.

The new deal with HGS, one of the largest international captive telecom BPO will boost the growth and firm the position of Tech Mahindra in the customer service segment. As per the statement released by company, the deal is a part of their strategic plan to expand and grow in the global BPO market.

HGS serving telecom brands like Three (UK & Ireland) and Vodafone (Australia) employs more than 11.500 employees and have set up BPO facilities across 5 centers in Mumbai and Pune. They are specialized in providing inbound and outbound customer life-cycle services.

Tech Mahindra sources however, confirmed that for the time being HGS would continue to operate as a separate entity. With this mega deal, Tech Mahindra is making an attempt to combine their domain knowledge with HGS’s service portfolio to become the undisputable leader in the global BPO market especially for the telecom vertical.

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