KPMG India to buy HR Outsourcing firm?
Date: 18-12-2007
Source: The Economic Times
KPMG India, which recently started its human capital practice, plans to acquire a mid-sized specialised HR firm. The firm is scouting for targets with a strong presence in the compensation space, leadership development and HR outsourcing operations.
The firm expects nearly 30% of its future human capital practice revenues will stem from inorganic growth. "We are exploring targets for acquisitions in India and in the Saarc region. An acquisition will help us trigger revenue growth to reach our target of $20 million from this practice by 2009-10," KPMG India partner and head (human capital practice) Ganesh Shermon told ET.
KPMG India floated its dedicated human capital practice this September to tap the current HR consultancy boom in India. It has already bagged some 24 bluechips and plans to tap its existing clientele in other practices to grow this business. "We expect nearly $5-7 mil-lion revenues in the first year itself," Mr Shermon said.
The firm also plans to rope in key senior professionals from other HR consultancies in India. However, KPMG intends to offer niche HR services to differentiate from existing HR and recruitment consultancies operating in India.
"We have identified our core areas - talent management and retention, change management, human resource integration in M&A, leadership development and HR transformation solutions. The focus will be to tap the mid-sized ownership managed businesses and help them emerge into professionally managed ones," said Mr Shermon.
HR consultancy is emerging into a big business in India. Latest studies see the human capital practice is set to grow in Asia (particularly emerging economies like India & China) by over 25% as compared to developed markets like the US at 6%.
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