EDS acquisition has little impact on Mphasis - Business as usual for subsidiary firm

By Subhankar Kundu @ Thursday, May 15, 2008 2:01 PM

Section - Business/Financials

HP's $13.9 billion acquisition of EDS seems to have had no impact on its IT & BPO subsidiary firm , Mphasis. Mphasis looks to be sticking to its usual business operations despite the acquisition of its parent company. Mphasis initiated its enterprise labs in Chennai and is betting big on operations in India. Two years back, when EDS acquired a major stake in Bangalore-based Mphasis, the company diversified its services into infrastructure management business. Prior to this acquisition, its primary focus was on BPO and application services.

The Chennai division is the company’s first in the Asia-Pacific region and will provide engineering, development and testing services. At present, the workforce is 2000 and is set to increase up to 3600 by the year end. The company also has plans to open a BPO in a smaller destination, probably in Trichy or Coimbatore.

Mphasis CEO Jeya Kumar confirmed that there will be no change in its usual business plans. Kumar refused to comment further citing the regulatory issues. X