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Hinduja Global Solutions' consolidated net profit rose 66% year-on-year to  ₹81.3 crore in September quarter
Hinduja Global Solutions' consolidated net profit rose 66% year-on-year to 81.3 crore in September quarter

Bengaluru BPO company to hire 3,200 people over next 6 months

  • The hiring plans come on the back of a strong deal pipeline that the company has been witnessing across various segments, says HGS Global CFO
  • As of 30 Sept, 2020, HGS had 235 core BPM clients and 699 HRO/payroll processing clients

After posting strong results in the September quarter, the Hinduja Global Solutions (HGS), the BPO arm of the diversified Hinduja group, said it plans to hire around 3,200 people in H2FY21 across various geographies, including the UK, the US and India.

The hiring plans come on the back of a strong deal pipeline that the company has been witnessing across various segments.

"We expect to hire around 3,200 people in the second half of the year...Pipeline looks encouraging. For instance, in the UK, we had won a short-term project related to COVID-19 from one of the government departments...We have now won another big order and we expect to add a significant number of people," HGS Global Chief Financial Officer Srinivas Palakodeti told PTI.

He added that for this new client, the company is adding 700 staff in the UK, and these roles will be all work-from-home.

"There is also a lot of interest in terms of digital services, it could be social care, engaging customers on any of the social media platforms...online reputation management...we have won some engagements there," he said.

Palakodeti added that the hiring is across almost all the geographies - the US, Canada, Jamaica, the Philippines and India. At the end of September 2020 quarter, the company's total headcount stood at 39,578 with 45 per cent staff in India.

The Philippines accounted for 24.9 per cent of the headcount, followed by US/Jamaica (18.8 per cent), Canada (7.4 per cent) and UK/Europe (3.9 per cent).

Palakodeti explained that some of the hiring is also on account of open season enrolment in the US, where open enrolment season is a period when people can enroll in a health insurance plan.

This is when employees of organisations can also make changes to their elected benefit options. Companies like HGS ramp up hiring to address the spike in workload related to the healthcare industry during this time. Earlier this week, HGS announced its financial results for September quarter.

Its consolidated net profit rose 65.6 per cent year-on-year to 81.3 crore in September quarter - the highest-ever reported by the company. Revenue increased 9.4 per cent to 1,332.5 crore during the quarter under review from 1,217.9 crore in July-September a year ago.

"Led by robust healthcare volumes and strong performance in other verticals, HGS reported excellent results in Q2 FY2021. Overall revenues for Q2 stood at 13,326 million, an increase of 11.9 per cent year-on-year on a like-to-like basis," HGS Wholetime Executive Director and CEO Partha DeSarkar said.

Technology and Telecom vertical accounted for 14.2 per cent, while Consumer and Retail vertical revenue contributed 10.6 per cent of the September 2020 quarter revenue.

During the quarter, HGS added 12 new logos across verticals for core business process management (BPM) services and eight for HRO/ Payroll processing, and signed 49 opportunities for expansion of business with existing clients.

It signed engagements with 17 clients (new and existing) for HGS Digital services (RPA, digital, analytics and Social Care services).

Profit was boosted by a one-time tax reversal charge, he said.

"Despite the current market environment, we continue to see big demand from clients...We won new business or expanded contracts across verticals in Q2, including signing of one of HGS' largest engagements in the UK public sector to be delivered in a Work@Home model," he said.

DeSarkar added that the company's sales pipeline for the second half of the fiscal year looks strong, and with open enrollment and the holiday season coming up, it is confident of good FY2021 performance.

The company declared its second interim dividend of 6 per share.

As of September 30, 2020, HGS had 235 core BPM clients and 699 HRO/payroll processing clients. Its headcount was at 39,578 at the end of the said quarter.

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