Essar’s AGC Networks to enter new markets
Jan 8th, 2018
At a time when IT companies are shrinking their geographical presence, Essar Group company AGC Networks is foraying into new shores, starting with the UK this year.
Further, the systems integrator will also set up facilities in Malaysia, Thailand and Indonesia.
AGC Networks is a subsidiary of Essar Telecom (holding arm for Essar Group’s investments), and the group is now incubating smaller companies such as AGC Networks, after it sold its BPO firm Aegis in 2017.
“We will add UK to our portfolio and the next journey would be to augment some of our APAC theatres. These countries – Malaysia, Thailand and Indonesia – are some of the larger markets and a lot of companies have presence there, and the plan is to expand to these places in 2018,” said CEO and Executive Director Sanjeev Verma.
“The process of new forays have started. We call it follow the customer. We have landed up in a few countries where our customers have opened their hubs,” he said.
At present, the IT company has operations across nine countries. Its global customers — mainly banks, large technology companies and top hospital chains — are from BFSI, IT and ITeS and healthcare sectors.
The company’s investments will be mainly to recruit personnel for these centres.
AGC Networks is also looking at increasing its manpower by more than 20 per cent and will add about 100 personnel in India and 50 overseas to its existing total of 750 employees. “Most of the hiring will happen in India to support our overseas customers. The headcount addition will come on the back of our growth in India, and also through the organic and inorganic growth,” Verma said, adding that the company is also open for inorganic opportunities.
AGC Networks is now expecting its business to grow at about 15-20 per cent organically this year. The growth will be 50:50 from both domestic and global markets.
The company’s journey started in 2010, when Essar Group acquired the entire 59.13 per cent stake held by the US-based Avaya in India-listed AGC Networks for Rs.206.19 crore.