Barclays buys 50% in HDFC arm Intelenet

The UK-headquartered Barclays Bank Plc will buy out the 50 per cent shareholding of Housing Development Finance Corporation Ltd (HDFC) in Intelenet Global Services Ltd, its business process outsourcing arm (BPO), for Rs 164 crore.

HDFC and Barclays today also entered into an alliance whereby more jobs will be undertaken at the BPO arm.

At present Intelenet Global undertakes 700 jobs of Barclays, which will be ramped up subsequently, said the company's chief executive officer Susir Kumar.

It may be recalled that last month Tata Consultancy Services (TCS) offloaded its 50 per cent holding in Intelenet Global for Rs 161 crore, as it wished to exit from entities where it did not have control prior to its initial public offering.

"The differential in pricing reflects the transaction cost incurred," said Kumar.

At that time of buying out TCS' holding, HDFC chairman Deepak Parekh stated that the housing finance major had proposed to sell the additional stake to a third-party.

"Intelenet Global was looking for a partner with a strategic fit. One which would be a long-term investor, give us domain expertise in banking, and contribute to Intelenet's business," said Kumar.

A separate team will be set up solely to look after Barclays Bank's business, with its own chief operating officer, he added.

"We intend to be a long-term player in the BPO space, and Barclays was looking for an opportunity to acquire an established business platform with some immediate capacity, with access to experienced staff," said Parekh.

Barclays will bring significant expertise in the area of international financial services, and thereby augment Intelenet's delivery capability and fuel growth.

Today 100 people at Intelenet work on jobs outsourced by Barclays to India. Intelenet has over 4,300 employees and 19 clients.

Last financial year, Intelenet earned Rs 117 crore in revenue, with a net profit of Rs 10.8 crore. With Intelenet expected to become the preferred vendor for Barclays, the BPO's financials are expected to increase in the current year.