Headstrong plans acquisition to grow BPO biz in 3 years
Posted September 12, 2008MANILA, Philippines – Global consulting and IT services firm Headstrong is set to acquire two to three companies in the next three years, as they prepare to expand into the high-growth business process outsourcing (BPO) market, executives here said.
Arjun Malhotra, chief executive officer and chairman of the board, said Headstrong, which has been mainly in the business of "systems development lifecycle," said the company expects to hit $500 million in revenues in 2011.
About $100 million of these revenues will be earmarked for acquisitions, Malhotra said, as he disclosed that the company has already $50 million ready this year.
Malhotra said Headstrong is in a "growth phase" and shareholders are expecting the company to go into the next stage of buying these companies to take advantage of the BPO opportunities.
The executive said Headstrong is currently in talks with BPO firms that will complement its business. The company aims to have about a 10,000-strong workforce in 2011.
Meanwhile, Nora Terrado, Headstrong Philippines country manager, said the Philippine operation has been the "highest [in terms of] revenues, profits and customer satisfaction," as it bagged more work from the financial, banking, and insurance sector.
She said that the Philippine operation, which is expecting to hit $15 million in revenues in 2008, will "conservatively" hire about 2,000 professionals in the next 18 months.
"The Philippines is a jewel in our portfolio," said Malhotra, adding that the Philippine operations will likely hire up to 4,000 employees by 2011.
Headstrong Philippines reported $10 million in revenues in 2007, according to Terrado.
Headstrong Philippines is mainly based in Metro Manila, employing about 650 professionals, mostly software engineers, Terrado.
Headstrong Philippines is currently studying plans to expand outside of Metro Manila, she said.
Malhotra, however, said plans to put up facilities outside of Metro Manila will not happen this year unless they acquire companies with operations located outside of Metro Manila.
The Philippine operation, dubbed Manila Global Delivery Center, is seen to provide 15 percent of the global revenues for Headstrong, the company said in a statement.
Headstrong Philippines aims to expand service offerings in the banking, financial services and insurance sectors.
The BPO industry in the Philippines has grown by 50 percent since 2004.
Source: INQUIRER.net, September 11, 2008By Erwin Oliva
