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Mah Satyam BPO turns profitable, delivers 8% growth QoQ
Published on Mon, Nov 09, 2009 at 18:46   |  Updated at Tue, Nov 10, 2009 at 14:49  |  Source : CNBC-TV18
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For the first time in four years, Mahindra Satyam's business process outsourcing (BPO) arm has made profits. Sources say that a quarter-on-quarter (QoQ) revenue growth of 8% has been seen this quarter, reports CNBC-TV18’s Kritika Saxena.

Two factors led to the profitability – strong cost rationalization by Mahindra Satyam’s BPO arm and a strong leveraging of Tech Mahindra’s operations and workforce.

Vijay Rangineni, CEO of Mahindra Satyam BPO says the company brought back focus on the renewed EBITDA on profit lines and that helped us to bring that renewed focus.

Revenues from new clients have grown by 4% this quarter. It has added two clients in the domestic market and has seen a large pharma client double its work. It is also close to signing three large deals in the telecom space. Moreover, its has saved up to 30% of its total costs.

Rangineni says, “We needed to make sure that our costs structure was aligned to the market realities so what we needed to focus was rationalization of our facilities, taking a look at our HR spend as a part of total revenue. Also, take a look at each cost component line”

The BPO arm has hired 1,200 employees this quarter and will hire 200-300 employees in the next two-three months.

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