Spanco to expand to China, Malaysia

Close on the heels of opening a business process outsourcing (BPO) unit in Singapore, Spanco Telesystems and Solutions plans to set up centres in China and Malaysia to cash in on the language capabilities of these countries.

The BPO major is also looking at tripling the number of its global seat capacity to 15,000 in the next two years from the current 5,000.

Spanco is in advanced negotiations to acquire two domestic companies, valued at Rs 100 crore each. The company is expected to close the acquisitions in the next three months. The names could not be ascertained.

The company is looking at setting up a 400-seater centre in Malaysia in the next six months and a 500-seater facility in China by the end of this financial year at a combined investment of around Rs 100 crore.

When contacted, Spanco BPO Executive Director and CEO Sandeep Soni confirmed the development and said the company was looking at expanding operations beyond Indian shores.

"Malaysia is a cheaper destination than Singapore and, apart from the cost-arbitration, the country has skilled workforce to handle other languages such as Mandarin, Chinese and Malay. It is also a trade-friendly country. Setting up operations in the country would thus help in expanding our base in this part of the world," Soni said.

China will emerge as a new destination for BPO services and Spanco is scouting for partners to commence operations in the Chinese mainland. The company is looking at offering banking, financial services and insurance (BFSI), telecommunications, gaming technology and entertainment support from these centres.

Spanco has operations in West Asia (Muscat and Doha), the UK (Newcastle), the US and opened an office in Singapore last week.

Meanwhile, the company is tripling its global seating capacity to around 15,000 seats in the next two years.

The capacity addition will come from proposed centres in Malaysia and China and ramp up capacity in India, the US and the UK.

The company intends to add 1,000 seats in the US and the UK, while it is adding 2,500 seats in Mahape, Navi Mumbai. The capacity addition would help Spanco in emerging as one of the top three BPO providers in the country, Soni added.

Spanco forayed into the BPO sector as late as December 2007 through its subsidiary Spanco BPO.

The telecom system integration company has set up customer support centres in Gurgaon and Mumbai and is planning to expand to other cities in the country.

SPREADING WINGS

To set up centres in China and Malaysia at an investment of Rs 100 crore

Will establish a 400-seater centre in Malaysia in the next six months and a 500-seater operations in China by the end of this financial year

Plans to triple global seat capacity to 15,000 in two years

Close to acquiring two BPO companies for Rs 100 crore each

Apart from cost-arbitration, Malaysia has skilled workforce and is a trade-friendly country

Spanco is scouting for partners to commence operations in the Chinese mainland