Mphasis to transfer domestic business portion to Karvy Data

2,000 employees to be transferred as part of the process

Mphasis today announced signing a definitive agreement to transfer a portion of its domestic business, subject to regulatory approvals, to Karvy Data Management Services (KDMSL) - a provider of business and knowledge process services in India.

The financial details were not disclosed. This is Mphasis' second definitive agreement, further to the recent signing with Hinduja Global Solutions (HGS) to transfer over 7,000 employees which was roughly two-third of the India Domestic Voice business. With this current agreement, over 2,000 employees would be transferred to KDMSL.

These developments are seen as part of Mphasis’s strategy to come out of the low margin and high people-intensive businesses to focus on niche segments.

"Specialization and consistent strategy execution holds the key to success. This definitive agreement offers tangible proof of our commitment to execute our strategic roadmap." said Ganesh Ayyar, CEO of Mphasis.

"KDMSL is optimistic about the overall business growth in India and hence better business volumes. Our pedigree and footprint in the country would enhance and integrate service offerings to clientele in addition to the existing voluminous transaction processing capabilities. We are thrilled with this acquisition." said V Mahesh, Managing Director of KDMSL.

KDMSL is a fully owned subsidiary of Karvy Stock Broking Limited (KSBL) and is headquartered out of Hyderabad.