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It looks like offshore BPO provider Mphasis (now a subsidiary of HP), is one of the losers in Santander’s decision to bring its call centre activities back to the UK (see Tide turning for offshore call centres). Mphasis' EVP and CFO Ganesh Murthy said that its call centre contract with Santander will come to an end in Q311 (which ends on 31 July), but that it would have an ‘insignificant’ impact on the business, since it accounts for below 0.5% of annual revenues (or c$5.5m). Nonetheless, the news sent Mphasis’ shares down over 5%, before regaining some ground.
Momentum is gaining in the UK for the repatriation of offshore call centre activities – a worrying sign for providers that have built their business models around the offshore model in recent years. It is interesting to note that UK BPO giants Serco and Capita have been actively acquiring UK-based and predominantly onshore call centre capability in recent months (see here). They clearly know the way the tide is turning.
