MphasiS to double BPO headcount, expand in tier-3 cities

The business process outsourcing (BPO) arm of IT major MphasiS plans to double its headcount in two-three years from the current 18,000 people by expanding in tier-III cities.

 A majority of the headcount will increase in India due to cost and scale issues. MphasiS has expanded its India operations by opening delivery centres in cities such as Hyderabad and tier-II and III cities such as Indore, Pondicherry, Vadodara and Ahmedabad. “India is a growth market for BPO and we will expand in places where we already have centres as well as in other places depending on our clients’ needs,” said Raj Patil, president, Business Process Outsourcing Business Unit and Chief Sales and Client Services Officer, MphasiS.

Sources close to the development say that the new delivery centres will come up in collaboration with the company’s clients and their expansion plans. The company hired more than 3,000 people in the last quarter and its BPO revenues increased by 3.8 per cent sequentially. Its BPO services include voice, transaction based services and knowledge based processes.

The headcount increase will happen through organic growth in newer geographies and new service lines.

Besides geo-expansions in the country, places like the Philippines are also on MphasiS’ radar. In fact, the company is also looking at emerging industry verticals like energy and utilities for larger transactions.

The EDS-owned company is currently seeing greater transaction volume in financial services while healthcare is a double –digit growth vertical. The company had posted consolidated revenues of Rs 1,048.5 crores for the quarter ended 30 April 2009.