The Hindu Business Line : Intelenet scouts for buys in UK

BPO service provider Intelenet Global Services, a joint venture between HDFC and Barclays, said on Thursday that it was scouting for acquisitions in the UK following a demand from its clients for a near-shore-offshore solution.

"In the UK, our clients are asking for a near-shore-offshore solution, given the union issues and the outsourcing backlash. We are looking at having a presence in the UK such that about 10 per cent of the high-end transactions can be handled from the UK centre and the balance can be sent to India," Mr Sandeep Aggarwal, Vice-President - Sales, Solutions and Transitions, Intelenet Global Services, told Business Line here.

He said that the company hoped to have a presence in the UK in 2-3 months, and would go for a 500-700 seat capacity. "For this, we are exploring two options, including one where we buy a company with clients, whose work can be outsourced to India. The other option is to buy out a shared services centre of a prospective client. We can then move a portion of the existing work to India and also scout for new clients in the UK," he said.

The company is also keen to go for an acquisition in either Canada, the US, Mexico or Chile to serve the US market. "Funding the acquisition is not a constraint as we are backed by HDFC and Barclays. We expect the acquisition size to be between $10-15 million each," he said.

Intelenet, which has three facilities in Mumbai and two centres in Chennai, recently announced its decision to acquire Sparsh, the domestic business process outsourcing (BPO) venture of Spanco Telesystems and Solutions. Spanco will de-merge Sparsh into Intelenet's domestic subsidiary, which will pay 51 per cent of the agreed valuation to Spanco and issue 49 per cent of the post issue capital to existing shareholders of Spanco. This company will be listed on the BSE.

Intelenet currently has 5,000 employees, 70 per cent of whom are engaged in voice-related work and the balance in back-office operations. The acquisition of Sparsh will bring an additional 4,000 employees on board.

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