Mphasis to sell part of its domestic BPO business to Karvy

HP-controlled Indian outsourcing services firm Mphasis Ltd has inked a deal to sell a part of its remaining Indian BPO business. The firm said it plans to sell a small portion of its business to Karvy Data Management Services Limited (KDMSL), part of Hyderabad-headquartered Karvy Group, for Rs 2.75 crore to trim down its domestic BPO business further.

Mphasis signed a definitive agreement to transfer over 2,000 of its employees to KDMSL, according to a release.

This follows its agreement early this month to transfer 7,000 of its employees and two-third of its India domestic voice business to Hinduja Global Services.

These divestments are part of the company’s decision to focus on a few specialised areas in IT and IT-enabled services such as digital and application maintenance and services.

“Specialisation and consistent strategy execution holds the key to success. This definitive agreement offers tangible proof of our commitment to execute our strategic roadmap,” said Ganesh Ayyar, CEO of Mphasis.

These back to back sell-offs take place amid talks that global tech major HP, that owns 60.45 in Mphasis, is trying to sell-off its stake in the Indian public listed IT company. It has engaged in discussions with many PE players.

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