Indian IT firm plans new centers in the Philippines

By Roderick L. Abad, BusinessMirror

Posted at Apr 22 2014 07:39 AM | Updated as of Apr 22 2014 03:39 PM

MANILA - Tech Mahindra, an information technology-business process outsourcing (IT-BPO) company based in India,–is expanding its footprint in the Philippines on the back of bright prospects on the retail, banking and media industries.

In an interview with the BusinessMirror, Tech Mahindra Business Services Group (BSG) Chief Executive Officer (CEO) Sujit Baksi revealed that the company is putting up a new office either in Clark, Pampanga; Subic, Zambales; or in Cebu, where they already operate with 400 seats.

“Cebu has always been a good existing alternative location for us,” he said, citing its backup operation for Manila and expertise for Visayan language as important for the domestic market they serve. “Meanwhile, Subic, Clark and few others have been shortlisted and are now being evaluated.”

When pressed on their plan for their Manila operation–on–apart from Cebu-on–Baksi stressed that they still see no reason to increase the combined capacities of their two offices in Eastwood, Libis, Quezon City, which currently stand at 2,000 seats.

“We are looking at additional 300 to 400 new seats. However, our decision to expand has not yet been finally taken,” he said, noting the exact location for their expansion will be announced in the next three months.

While the IT-BPO firm is keen on expanding its capacity to at most 2,800 seats locally, the top executive said services will remain the same.

Tech Mahindra BSG has been operating in the Philippines since 2008, servicing multiple clients across verticals scattered in major geographies and providing them with all the support channels they need.

On a global scale, the company offers IT management and BPO services to retail and manufacturing industries in Australia and seven other countries located in Europe, the Middle East and North America.

Domestic customers are involved in banking, financial services and insurance, as well as telecommunications and media sectors.

“The Philippines is an area for growth for us,” said Baksi. “I don’t think that many other places [where we are at present] have grown from zero to 3,250 people that we have here right now.”

Beyond manpower, he said that their local operations have so far contributed significantly to their global business performance.

Out of Tech Mahindra’s $3.2-billion total revenues, he said the BPO segment accounted for $300 million–on–of which, over 8 percent or about $25 million, came from the Philippines, now a leader in the voice BPO space.

“Obviously, we have interest in growing further the Philippines for our BPO business and IT operations,” the company official said.

Confident of the continued growth of the IT-BPO in the country, Baksi said the company will focus more on growth areas such as retail, banking and media clients.