Business process management (BPM), Hinduja Global Solutions (HGS) Ltd is expected to keep the number of its employees flat in the current financial year following an uncertainty in the telecommunication sector. However, the company is likely to recruit around 1000 staff in 2019-20.
Domestic customer relationship management (CRM) business which accounts 14 per cent of Hinduja Global’s overall revenue is trying hard to move with its business as it has been struggling due to falling volumes from telecommunication clients. Around 70 per cent of the company’s CRM business in India comes from telecommunication sector, said Partha DeSarkar, CEO, Hinduja Global Solutions.
With the entry of Reliance Jio into India’s telecommunication sector, the sector has been undergoing a data revolution and has witnessed consolidation and the profitability of stakeholders in the telecommunication industry affected as a result of rising competition, lower margins, and other issues.
As on June 30, Hinduja Global had 44,854 staff in seven countries. However, over the next fiscal, Hinduja Global is expected to have a capacity addition of around 1,000 employees at its two centres in India’s Hyderabad and Jacksonville in Florida, DeSarkar added. The upcoming centre in Jacksonville will cater to consumer electronics and healthcare clients.
The company's net profit recorded a decline of 9 per cent to 313.35 million GBP ($ 400.28) in the first quarter of the fiscal year 2018-19.
In March 2018, Hinduja Global Solutions purchased loss-making AxisPoint Health for 10.96 million GBP ($14 million) in a deal. DeSarkar noted that AxisPoint was losing clients as its capacity utilisation was unable to stabilize its business to prevent it from further losses.
The company had also acquired a 57 per cent stake in Element Solutions LLC, for 3.91 million GBP ($5 million). Hinduja Global may plan to raise its stake further in Element Solutions depending on how the acquisition end up.
Meanwhile, the board of directors of the company in a release stated that the board of directors of IndusInd Media and Communications Limited (IMCL), a subsidiary of the company has appointed Vynsley Fernandes as Chief Executive Officer of IMCL, which follows the appointment of Amar Chintopanth as Chief Financial Officer and Executive Director on the board of directors of IMCL.
The company has also accepted the resignation of Ashok Mansukhani as Managing Director of IMCL and promoted Ashok Mansukhani as non-executive vice chairman of IMCL from August 1, 2018.
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