IT services provider Mphasis on Tuesday said it has signed a definitive agreement with Hinduja Global Solutions (HGS) to transfer a significant portion of its domestic business.
The agreement facilitating the transfer is subject to regulatory approvals.
"Focus and specialisation will be key to success in the new digital world. I am happy to see that with this agreement, Mphasis will further intensify our focus in Digital, Governance Risk and Compliance (GRC), Application Maintenance Services (AMS) and Infrastructure Services (IS). HGS' specialisation will bring excellent value to the in-scope domestic customers and employees in India," Mphasis CEO Ganesh Ayyar said in a statement.
However, the company has assured of no loss of jobs as a result of the transfer of business, stating its employees to "have found a new home in HGS and will play a pivotal role in augmenting their India footprint".
"A dedicated unit has been set up to ensure smooth transfer for all employees. There would be no loss of jobs or headcount reduction," said Mphasis' chief human resources officer and head, emerging geographies business unit Elango R.
Speaking about the agreement, HGS CEO Partha De Sarkar said: "We see an environment of bullishness in India where companies are getting back into investment mode and looking for ways to enable higher growth."
He said the resulting acquisition is opportunistic and fits well into his company's growth plans.
"It adds scale and a wider footprint even as we enhance our capabilities and gain an outstanding team of domain specialists to cater to our clientele," he said.