HTMT Eyes Coimbatore

HTMT Global Solutions, the BPO arm of the Hinduja group, is expanding its operations in metro and non-metropolitan locations, as it expects more business from its domestic and overseas clients. On Wednesday, the company opened its second delivery centre in Chennai and shared plans to open two more — in Mysore and Durgapur — by the end of the year. HTMT is also finalising plans for an acquisition, which would help it gain a foothold in the European market, a top official said. “We are planning to expand in Tier-II locations. Apart from more centres in Durgapur and Mysore, we are also looking at Coimbatore and Vijayawada.

The manpower expenses in these locations is 10-15% times cheaper, but the real estate is not always cheap,” said HTMT CEO Partha De Sarkar. Real estate prices will be an important determinant for HTMT, since the company prefers owned premises over leased ones. Mr Sarkar said that buying is a preferred option since leasing contracts have a short duration and have annual escalation. Investing in real estate would mitigate these shortcomings. Despite uncertainties surrounding the US economy, the company was positive about more business flowing in from the region. It currently accounts for 42% of the company’s revenues. “There is still scope to fill 5-5.5 million seats in call centres still left in the US. The fundamentals of the US economy is strong and we will add more seats to our centres there,” Mr Sarkar added.

While 75% of its services are voice-based, the rest comes form non-voice segment. HTMT expects to balance this proportion by acquiring a non-voice services firm in the UK. “We are looking at four targets and will decide by the end of the year. The acquisition will also give an entry to the European market,” Mr Sarkar added. Also, the bearish market condition would help HTMT get a more reasonable valuation. “M and A activities are low now, so it’s a good time to buy,” Mr Sarkar added. Apart from developing its European business, the company is mulling a joint a venture in the US to get into the legal process outsourcing space.

While it firms up its vertical foray, it will continue to add seats and people across centres. As on 1 June 2008, the company had a headcount of 12,800- with 2,200 employees working out of its Chennai centre. The newly opened delivery centre in Nandambakkam is spread over 48,000 sq ft and has a capacity of 1200 seats. This centre would cater to their domestic and international businesses. With the launch of this centre, HTMT now has 11 delivery centres across India in Bangalore, Chennai, Durgapur, Hyderabad, Mumbai and Mysore.

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