News : Mphasis Pulls Back on BPO Business
Mumbai, India, March 11, 2015 -- Software services firm Mphasis is pulling back on its domestic BPO business as it looks to raise margins that have touched an all-time low, people with knowledge of the matter told ET.
Bengaluru-based Mphasis has been struggling over the last few years as its major shareholder Hewlett-Packard passes on less work to it and its mortgage transaction business slowed on weak US home loan demand.
In its latest quarter, Mphasis reported operating margins that are lowest in the company's history. As a part of a drive to get the margins to higher level, Mphasis is pulling back on its domestic business.
"They have been trying to exit unprofitable contracts and are not bidding aggressively for new business.They may look to exit it all together, but in the domestic sector, there is limited opportunity for a sale," said one of the people quoted earlier.
When asked about the pullback in BPO, an Mphasis spokesperson said the company does not comment on rumour and speculation.
Though the company does not specifically break out its domestic BPO revenue, Mphasis' results have been showing signs of the pullback in the BPO segment.
Posted by Veronica Silva Cusi, news correspondent
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Published: Thursday, March 12, 2015