Bangalore: Tech Mahindra Ltd , India’s No. 5 software firm, plans to set up back-office operations in North America and Europe and could do this through acquisitions, the president of the company’s back office operations said on Monday.
Tech Mahindra, a unit of India’s utility vehicles maker Mahindra & Mahindra , earlier in the day said it had set up back-office operations in Philippines after it won a three-year multi-million dollar contract from a telecom firm there.
“We have plans to invest in a facility in Europe and North America this financial year, either through acquisition or organically,” Sujit Baksi, president of the company’s BPO business said.
The business process outsourcing (BPO), or back-office business, which accounts for about 6% of Tech Mahindra’s revenue, would see significant growth in this fiscal year to end-March 2012 driven by Africa, where it handles operations for Bharti Airtel , he said.
“The internal target is to take it to 10% of the current revenue in the current financial year without any acquisition, based on the pipeline we have today,” Baksi said by telephone.
In 2010, Tech Mahindra said it was one of three companies selected by Bharti to handle customer service operations for the telecom firm’s newly acquired mobile networks in 16 African nations.
The company was also chasing a couple of deals similar to the Bharti deal and hoped for a closure in the next two quarters, Baksi added.