Secova buys US benefits processing co

CIOL Bureau
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CHENNAI: Secova eServices, an Indian HR player, has acquired US based EmpactEBS, a benefits processing company with a delivery center based in New Jersey. According to the company, this acquisition is said to be valued between $1 million to $5 million bracket has earned for Secova 15 customers and manpower. Meanwhile, Secova, which was set up in July last year, has acquired five more customers.

EmpactEBS, a seven year old company has been addressing the health and welfare benefits segment in HR. "With Empact's presence in the area of benefits administration coupled with Secova's expertise in the areas of HR and payroll, this new entity will be able to extend a broad range of HR and benefits services at a competitive cost," said Co-Founder and CEO of Secova eServices, Venkat Tadanki.

He claimed the where companies spend $500 on an individual per year for their HR processing, Secova promises to deliver it at $300 on an individual per year.

The acquisition of EmpactEBS will also fortify the company's management strength with the founders of EmpactEBS, Joseph Bevacqua and Joel Carter now being part of the Secova Board of Directors. The acquisition will also provide the necessary domain expertise for Secova enabling it to successfully serve the company's global customers with global support both onshore and offshore.

According to Tadanki, Human Resources, which forms 25 percent of the overall BPO, is unexplored. The company intends to focus in the mid market segment which, according to him is a $ 20 billion market, though untapped. "But in four years time 10 percent of HR BPO from this segment will come to India," he added.

Secova expects to record revenue of $ five million during the next 12 months, whereas the revenue for the next three years is expected to hit $24 million. Additionally, the company expects that in the next 18 months, 20 percent of their HR activity will happen on shore (New Jersey facility) and the remaining will take place offshore.