Ma Foi plans to foray into HR outsourcing space
The firm expects to bag HRO deals from clients in new economy sectors such as IT, banking, financial services and insurance.
By Writankar Mukherjee, TNN |
KOLKATA: Ma Foi Management Consultants, a Rs 450-crore human resource (HR) services firm, is evaluating the option to foray into big-ticket human resources outsourcing (HRO) space. The company is finalising its game plan to bag multi-year high-value HRO deals from Indian corporates, wherein it will outsource the entire HR function for the client.
Ma Foi expects to bag such HRO deals from clients in new economy sectors such as IT/ITeS, banking, financial services, insurance and telecom. “We are studying the possibility of entering into HRO deals. However, it is in the preliminary stage and we are yet to decide on the timeline,” Ma Foi Management Consultants chief operating officer E. Balaji told ET.
Mr Balaji feels the Indian HR market is slowly maturing which might open opportunities for HRO deals. “We are already into the recruitment process outsourcing space whereby we outsource recruitment-related operations. HRO will be a logical extension of such services,” he said.
The company’s decision to foray into HRO will require substantial investment in its employee base, technology and IT infrastructure. “This will be a huge investment and we are yet to decide on the details. But the returns are equally higher since these deals are multi-year and very high in value,” said Mr Balaji.
Incidentally, HRO has already taken shape in the West as it has multiple benefits for clients — manpower rationalisation, cost savings and focus on core functions. Some recent big-ticket global HRO deals include Accenture bagging a mega contract from Unilever and Convergys’ $1-billion deal with Johnson & Johnson.
Ma Foi is also going to double its network of finishing schools, christened Ma Foi Academy. The company runs 24 such facilities which will be ramped up to 50 by the end of 2008 on both company-owned and franchisee basis. “These institutes provide training for areas like BPO, sales and retail,” said Mr Balaji.
The company is eyeing Rs 1,000-crore turnover by 2009, with major growth expected from verticals like ITeS, energy, infrastructure, pharma and healthcare. Ma Foi currently hires around 5,000 permanent employees and temps for clients in a month which is targeted to grow up to 7,500 people soon.
Ma Foi expects to bag such HRO deals from clients in new economy sectors such as IT/ITeS, banking, financial services, insurance and telecom. “We are studying the possibility of entering into HRO deals. However, it is in the preliminary stage and we are yet to decide on the timeline,” Ma Foi Management Consultants chief operating officer E. Balaji told ET.
Mr Balaji feels the Indian HR market is slowly maturing which might open opportunities for HRO deals. “We are already into the recruitment process outsourcing space whereby we outsource recruitment-related operations. HRO will be a logical extension of such services,” he said.
The company’s decision to foray into HRO will require substantial investment in its employee base, technology and IT infrastructure. “This will be a huge investment and we are yet to decide on the details. But the returns are equally higher since these deals are multi-year and very high in value,” said Mr Balaji.
Incidentally, HRO has already taken shape in the West as it has multiple benefits for clients — manpower rationalisation, cost savings and focus on core functions. Some recent big-ticket global HRO deals include Accenture bagging a mega contract from Unilever and Convergys’ $1-billion deal with Johnson & Johnson.
Ma Foi is also going to double its network of finishing schools, christened Ma Foi Academy. The company runs 24 such facilities which will be ramped up to 50 by the end of 2008 on both company-owned and franchisee basis. “These institutes provide training for areas like BPO, sales and retail,” said Mr Balaji.
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The company is eyeing Rs 1,000-crore turnover by 2009, with major growth expected from verticals like ITeS, energy, infrastructure, pharma and healthcare. Ma Foi currently hires around 5,000 permanent employees and temps for clients in a month which is targeted to grow up to 7,500 people soon.
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