HCL’s BPO company is looking to buy platform-based BPO firms in the US, UK and Australia with revenues of up to $250 million, its chief executive said. “We want to de-link revenue growth from headcount growth. So, we want to acquire companies in Englishspeaking countries that derive revenues from output or outcome-based pricing and platform-led services,” HCL BPO president and CEO N Ranjit said.
Last year, the BPO arm of HCL Technologies had acquired two firms —UKbased Liberata Financial Services (LFS) and US-based Control Point Solutions. The BPO firm aims to earn revenues of $1 billion by 2010-11 and expects about 56% or $560 million to come from acquired entities . HCL BPO had revenues of about $223 million in the year-ended June 2008.
Confident of closing at least one buyout this year, Mr Ranjit said the company’s strategy is to buy loss-making or marginally profitable entities at low prices and turning them around. So, while BPO firms typically go under the hammer at 1.5-2 times their revenues , Control Point, with revenues of $27 million, was bought for $20 million. HCL BPO paid $2 million to acquire LFS’ fixed assets and committed an investment of another $24 million. The firm is confident of turning around both acquired companies by the end of calendar year 2009.
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