Aegis, the business process outsourcing (BPO) unit of the Essar group, is looking to acquire assets in Europe, where it has no presence. A unit in Europe, coupled with both organic and acquisition-led growths across its present locations in 11 countries, are expected to catapult the company to the top three positions in the BPO sector in the next few years. Aegis ranks amongst the top five BPO players, according to software industry body Nasscom. According to Aparup Sengupta, managing director and global CEO of Aegis, the firm has been looking for assets in Europe. It will also hire around 11,000 people in the next 12 months to expand in its present locations.
Aegis has acquired around 17 units in different parts of the world. Close to one-third of its revenues come from North America, one-third from the Philippines and a same from India, Australia, New Zealand and Africa.
The BPO firm has seen its revenues jump from USD50 million to over USD800 million in five years, betting on an aggressive acquisition-led growth strategy. This includes the integration of the acquired unit into its mainstream within a period of 90 days. The company now has a strong mergers and acquisition (M&A) team comprising 15 people. Aegis has decided not to pursue any acquisition in India as it feels that the assets in the country are heavily priced.
Sengupta said in the US, where the company added 2,500 people in September-December, Aegis had gained from enterprises outsourcing to another company within its shores rather than to a BPO unit in another country.
If I am a tier-I multinational, my total cost of ownership per hour is USD45 to USD55. At Aegis (within the US) the price is between USD27 and USD30 per hour of labour work. Some firms do not outsource to other countries. Economically, the firm is able to save, while emotionally they are comforted, as they are able to keep the jobs in the US, he said.