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.
