PeopleSupport to continue expansion plans in RP

California-based outsourcing firm PeopleSupport said yesterday it will continue its local expansion plans in spite of the buyout by Indian firm Aegis BPO.

PeopleSupport Philippines Inc. president Rainerio M. Borja said they would like to proceed with the construction of a 750-seat office in Baguio City before the end of the year.

Operates in six sites  – Baguio City, Cebu City and Makati City – PeopleSupport has a total of 7,000 seats in the country.

Early this week, PeopleSupport announced that the company was acquired by the Indian conglomerate for $250 million.

Aegis BPO will pay PeopleSupport stockholders $12.25 per share. The firm is listed in the Nasdaq. It will be delisted and the new company will be named Aegis PeopleSupport.

Borja said the two firms will complement each other because PeopleSupport is strong in voice services while Aegis is good at software development.

Until the sale agreement is completed, Borja said there will be no change in the management of PeopleSupport. The sale is expected to be completed in the third or fourth quarter of next year.

In the second quarter, PeopleSupport posted a net loss of $1.3 million. The firm said the loss was due to to increased cost of facilities, employee compensation, and peso appreciation.

Aegis BPO is part of the Indian business conglomerate Essar Group.   – Ma. Elisa Osorio