Hinduja Global Solutions acquires 3i Infotech's HRO business

13 Aug 2011

Hinduja Global Solutions, a leading provider of outsourcing solutions, has acquired 100-per cent equity stake in HCCA Business Services (P) Ltd, a prominent human resource outsourcing (HRO) services provider, from 3i Infotech Ltd.

The transaction also includes the payroll processing activities of 3i Infotech in the UAE and other Gulf countries, HGS said in release.

HCCA is a leading HRO provider serving marque customers in the banking, financial services, insurance and other industry verticals.

The company offers payroll, statutory compliance and employee life cycle support to over 30 clients in India. HCCA is a profit making company and currently has more than 500 employees. Harish Chopra, founder of HCCA and current CEO, will now become a part of HGS and drive the HRO practice.

The acquisition marks HGS's entry into HRO domain. It builds on HGS's global delivery capabilities and presents both companies an opportunity to cross-sell to their existing clients. Consequent to the transaction, HCCA would become a wholly-owned subsidiary of HGS. This would also enable HGS to get a footprint in the Middle East market.

The HCCA transaction is the second acquisition by HGS in this month. Earlier this month, HGS acquired On Line Support Inc (OLS), a profitmaking Canadian customer relationship management company with FY'11 revenues of C$63.4 million. The two acquisitions will add annual revenues of around C$68 million  to HGS, taking HGS's combined revenues to US $ 320 million from $242 million in FY'11 - a 30 per cent increase on a an annualised basis.