Aegis, Essar group's business process outsourcing (BPO) and back office services arm, is seeking to raise up to $400 million (Rs1,975 crore) through an initial public offer. The feasibility is still being worked out but the issue could be around the middle of this year, Aegis chief executive Aparup Sengupta said on Thursday.

Talking to CNBC-TV18 on the sidelines of the NASSCOM India forum in Mumbai, Sengupta said his company was talking to bankers to raise $300-400 million through an IPO as well private equity funding. It would largely comprise equity with very little debt.

''I would say that we are still in the conversation stage. We are looking at strategic as well PE (private equity) investors to come into this cycle. Once we get the sense as to what we need to do, maybe sometime middle of this year,'' he said when asked about the timeline.

''We are in conversation with bankers and will take another three-four months to finalise things. But I am looking at the UK, the US and India as the primary markets for the IPO,'' he said.

Sengupta expects the company to log an overall growth of 25 per cent this year.

The company plans to tap China too, but more as a delivery destination than a source of funds.

''The way it is going, China could overtake India in the BPO, market, said Sengupta. ''Who knows, Huawei might even overtake Big Blue (IBM) in another five years. China is making all-out efforts to improve the soft skills of its people.

''But more than a threat, I consider China as an opportunity. As an organisation, I would like to include it as a delivery destination,'' he said.

The company also plans to expand its presence in the Middle East, Africa and Latin America.

Underlining the company's international credentials, Sengupta said more than 50 per cent of Aegis's global workforce is non-Indian.

''I do not want to be a company which calls itself a global player but operates out of India with Indian employees,'' he said.

At the same time, he was upbeat about India, where Aegis derives 35 per cent of its revenue. He saw India contributing $300 million to the company's order book this year.

In a clear hint that companies should outsource more back-end operations, Sengupta said that amid the general economic slowdown, Western as well as Indian companies could easily cut costs by this means.

''Around 80 per cent of a company's work is still handled internally. They can easily outsource accounts, payroll, etc, which is not their core strength. However, by outsourcing, I do not mean offshoring,'' Sengupta said.

On the company's exposure to telecom companies whose licences have been cancelled by the Supreme Court earlier this month, Sengupta said it would have very little impact on Aegis, as its exposure was less than 1 per cent.

''We have lost almost nothing. People whose licences got cancelled - either we are not servicing them or we are servicing a minuscule volume for them,'' he said.