Headstrong looking to acquire 3 BPO companies

MANILA, Philippines - US-based Headstrong is on the lookout for three business process outsourcing (BPO) companies to acquire within three years to double its revenues to $500 million by 2011. Headstrong said in a news conference on Thursday that it is counting on its Philippine operations to reach its revenue and headcount targets. The company is also on a buying spree to grow faster. The company is prepared to spend at least $50 million to acquire companies in any part of the world that can help Headstrong expand its services, Arjun Malhotra, Headstrong Chairman and Chief Executive Officer (CEO), said. Headstrong is focused on what the BPO industry refers to as high-end outsourcing services such as consulting, software application outsourcing, and product development. Malhotra said it is particularly looking for a BPO company that is into knowledge process outsourcing (KPO), a segment that currently represents only one percent of Headstrong’s business. “We are particularly looking for companies that will add depth, expertise, and new services to Headstrong, regardless of size and revenues," said Malhotra. Headstrong calls its global expansion plan as Headstrong 2.0, carrying on from the recent trend in the internet called as Web 2.0, or the next generation internet. Included in the plan is to grow the number of employees worldwide to 10,000, with 4,000 of these coming from the Manila operations center or the Manila Global Delivery Center (MGDC). Nora Terrado, Headstrong Philippines country manager, said they will do everything to look for the needed human resources despite the fact that talent is scarce in the industry. She said Headstrong has short-, medium- and long-term strategies, including aggressive recruitment among Manila's colleges and universities. She added that Manila is still the place where most of the graduates of information technology (IT) are produced. For this year alone, Headstrong in Manila is planning to hire from 80 to 100 software professionals to expand its operations. These will add to the existing 650 employees in the MGDC. Headstrong said it has already invested $18 million in the Philippines for infrastructure and people. Malhotra said it is willing to further invest in the Philippines. With these further investments, the Philippine operations are expected to provide 15% of Headstrong's global revenues by 2011. Puneet Pushkarna, President of the Southeast Asia and Australia operations, said the rest of the Asia Pacific operations, including Japan, contributes another 15% to current global revenues. This comparison indicates the size of the Philippine business. Around 63% of Headstrong Philippine's clients are from North America. - GMANews.TV