Tuesday, 17 October 2017

TeamLease to acquire Evolve Technologies

Human Resources Company TeamLease Services Ltd agreed to acquire Evolve Technologies, a smaller Pune based staffing firm, to enter the specialized telecom staffing space.
This is the second acquisition by TeamLease since July this year. It had acquired Bengaluru-based ASAP Info Systems Pvt. Ltd for Rs67 crore in July. It had then said that the acquisition would help it expand its footprint in the core IT hiring space. The acquisition of Evolve is in line with our long-term strategy of expanding our footprint into specialized areas of staffing.

India’s telecom sector has generated a lot of attention over the last one year after Reliance Jio Infocomm Ltd entered the sector. The annual revenue of the telecom sector in India is about Rs2 trillion. It is saddled with a debt of around Rs4.5 trillion. The industry also owes close to Rs3 trillion in spectrum payment charges to the government, according to industry estimates. Evolve, which posted revenue of Rs108.64 crore in financial year 2016-17, will continue to operate as a separate entity following the acquisition.

TeamLease, which has been operating since 2002, mainly offers temping services where it provides temporary workforce to its clients in bulk on a contract. This allows clients to hire without adding to their direct employee base. This employment and business model is closely associated with sectors like manufacturing, banking, BPO and retail, among others. Temping also involves hiring senior level managers on a short-term basis.

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