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TechM eyes eastern Europe

Expansion drive

Calcutta, Dec. 29: The business services group of IT company Tech Mahindra, having clients in retail, BFSI, healthcare and lifesciences, is planning to expand its base into east Europe.

The company intends to set up a delivery centre, which is expected to commence operations in the next fiscal. It also plans to expand into North America.

Focus will be placed on financial services, insurance and healthcare to drive growth. The company is likely to look out for acquisitions in healthcare and high-end knowledge process outsourcing (KPO).

In Bengal, Tech Mahindra is hopeful of getting back a 12-acre plot in Bantala IT SEZ following a meeting of the board of approval in New Delhi on January 17.

The company was allotted the plot in 2006 and had built the foundation. Further construction took a backseat, one reason being pollution caused by the adjoining tanneries.

Initiatives by the state government to put in place an effluent treatment mechanism seem to have sent a positive signal to the company.

“Our next move will be to start a centre in east Europe. Currently, not all the languages can be served from our base in the UK. Between April 2014 and March 2015, it should be up and running,” said Sujit Baksi, chief executive officer (business services group) of Tech Mahindra.

“We may open another centre in North America. If all goes well, we may sign a deal in February and start operations in April. Europe is a conservative and slow outsourcing market. The US is seeing growth because of the economic revival,” he added.

Baksi said key clients were increasingly preferring near shore offerings as a cheaper alternative to offshore outsourcing. There is also a greater emphasis on value-added services.

India will serve as an important hub for judgement-based, non-scripted services, which involve the use of analytics and high-end KPO. The Philippines, on the other hand, will be the market for scripted instruction-based services.

The voice business is shifting from India to Philippines, Baksi said.

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