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Follow UsBANGALORE: Valuemart Info Technologies Ltd (Valuemart), a Bangalore-based software development and BPO company, has announced the acquisition of a 51% stake in HVO Technologies Limited (HVO).
Post-acquisition, HVO will be a subsidiary of Valuemart. HVO (High Value Outsourcing) has its offices in Bangalore, Hyderabad and Silicon Valley, US, with Mumbai shortly to be added to that list.
HVO's focus is to provide high-value software outsourcing services on the VP Engg/CTO side, which is expected to earn an estimated market size of US $12 billion by 2008, as per industry research reports.
HVO Technologies Limited is headed by IT industry veteran Vinay M Aggarwal, former Sr. VP, TCS, who has more than 28 years of industry experience in software services and consulting; and JK Saroop, former Sr. GM of TCS, who has more than 20 years industry experience, including 12 years with TCS is the Global CFO of HVO.
The VP Engg/CTO market includes opportunities across software R&D outsourcing, independent solutions vendors and OEM software product development, which constitute the high end of the IT outsourcing chain. The CTO space has traditionally been occupied by captive R&D centers of MNCs in India.
“The CTO space has traditionally been addressed, for the most part, by local onsite development overseas. I expect this space to be the next major growth segment for outsourcing opportunities for Indian vendors. This also solidly establishes India's ability to move up the value chain in a big way in the software services arena. We expect to have a global reach very quickly. I welcome Valuemart's association with us and they have the right background and profile to add significant value to seize this opportunity,” said Vinay M Aggarwal, managing director and CEO of HVO Technologies Ltd.
“With this acquisition, Valuemart has entered the niche high end IT outsourcing space. HVO will help Valuemart extend its sales reach in the global markets,” said CK Vasudevan, Valuemart's director for finance and business development.
HVO is Valuemart's second acquisition in two months. Earlier, Valuemart had acquired a 74% stake in Tejas Infoscripts, a Bangalore-based legal BPO. The equity shares of Valuemart are listed at Mumbai (BSE), Bangalore and Hyderabad.