Tech Mahindra acquires Hutchison’s BPO arm for $87 million

Tech Mahindra Limited, the information technology arm of Mahindra and Mahindra Ltd,  today announced the acquisition of 100 per cent stake in business process outsourcing firm Hutchison Global Services Private Limited for $87.1 million in cash.

Hutchison Global Services (HGS), the BPO arm of telecom services company Hutchison Whampoa Ltd,  provides customer lifecycle operations to clients in the UK, Ireland and Australia and has an associate base of over 11,500 employees.

HGS operates out of Mumbai and Pune and is among the largest captive BPOs in the telecom domain.

This acquisition builds on the significant relationship between Tech Mahindra, a leading provider of solutions and services to the telecommunications industry and the Hutchison group across multiple countries.

''The acquisition will provide significant enhancement of Tech Mahindra's expertise in the customer management space and will thus be a key component of its strategic plans going forward. In addition, the acquisition will enable Tech Mahindra to leverage the acquired capabilities and scale for expanding the scope of their existing services to other parts of the Hutchison group, and also to other customers and verticals,'' Tech Mahindra said in a release.

As part of the deal, the clients of Hutchison Global Services have committed to procure services worth $845 million over a 5-year period, and have agreed to Hutchison Global Services being their exclusive provider of certain agreed services in India.