Spanco Tele to hive off BPO operations

Spanco Telesystems & Solutions, a leading telecom integration and back office services major, is hiving off its business process outsourcing (BPO) operations into a wholly owned subsidiary, Spanco BPO Services.

The move will create five different BPO companies under Spanco BPO Services effective March 1.

Confirming the development, Chairman and Managing Director Kapil Puri said,"The demerger, apart from unlocking value for shareholders, will make it easier to bring in equity or joint venture partners to the company."

The demerger, which will create five companies for separate geographies, will help bring in more focus to customers in these locations, Puri added.

The company's US operations would be brought under Spanco Respondez Services (International), UK operations under Spanco UK, West Asian operations under Spanco GKS Solutions, Indian operations under Spanco BPO and its call centre operations for Indian Railways would be Bharat BPO.

The railway call centre operations, a 50:50 joint venture with Spice Communications, a Modi group company.

All the BPO operations will come under Spanco BPO Services, while the parent company Spanco Telesystems & Solutions will continue with its telecom integration business.

Spanco BPO Chief Executive Officer and Executive Director Sandeep Soni said that the demerged company could have over 3,000 employees by April. At present, the BPO business employs 2,000.