Business process management firm Hinduja Global Solutions (HGS) is overhauling its portfolio in a bid to cater to growing market needs, with a broader focus on digital, said Partha De Sarkar, its Global CEO.
In an interaction with Moneycontrol, Sarkar said the company had taken the first step in restructuring early this year with the divestment of its India domestic customer relationship management (CRM) business in January. “Domestic divestiture is the first step. We are looking at the businesses that we want to invest in and grow,” he added.
Sarkar explained that the company’s India (domestic CRM) business was a high headcount and low margin affair and was part of the restructuring exercise. “We are right now in the middle of it,” he explained, adding that HGS is currently looking at how each of its businesses is performing.
Digital focus
HGS is also looking at capabilities that it needs to build and those that can be gotten through acquisitions in the key areas of focus, including digital.
“Digital has fast tracked almost by a decade. So, we are looking at how to make digital a stronger part of the portfolio. How do we add muscle as far as digital offerings are concerned. That is the big part of the restructuring we talked about,” Sarkar explained.
The HGS chief said that analytics would be a big focus for the company. The company handles millions of calls per day and with speech and text analytics becoming powerful, all these transactions can build insights. This will, in turn, drive business outcomes. For instance, usage of analytics can help the company understand why a competitor is doing better and what the company can do to make its customers stick.
The company is also focussing on driving tech partnerships. It has partnered with players such as Automation Anywhere and UiPath, which are robotic process automation service providers, and possess capabilities that are in high demand. It has also partnered with cloud service providers such as Amazon Web Services.
“We are signing up with many technology partners and we are kind of ramping up our system integration capability. These are product companies and they are not into the deployment game. So, we help them in deploying their product to our clients,” Sarkar explained.
While the company has been doing this over the last two years, adoption has leapfrogged due to Covid-19 and is hence an important focus area for the company, he added.
Apart from digital, the company will also look at its verticals and geographies as a part of its restructuring to see if any of these businesses are not a strategic fit anymore, as was the case with the India CRM business.
Financials
For the quarter ended June 2020, the company registered revenue of Rs 1,235.8 crore, which amounted to growth of 1.5 percent year on year, and a decline of 3.1 percent from the previous quarter (ended March 2020).
The US and Jamaica account for about 38 percent of the company’s overall revenue and India operations are at 25.3 percent, excluding the domestic business sold in January. The Philippines, UK/Europe and Canada account for about 17 percent, 7.6 percent and 11.7 percent, respectively.
In terms of verticals, close to 56 percent of its revenues come from healthcare and insurance followed by telecom, with 14.6 percent. Consumer and retail account for 11 percent while banking and financial services contribute 8.4 percent to its top line.
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