16 Oct 2009
Swiss financial services giant UBS has agreed to sell its Indian business process outsourcing (BPO) unit to outsourcer Cognizant in a deal that includes a multi-year services contract.
According to reports, the sale of Hyderabad-based UBS India Service Centre, which employs 2,000 employees, is part of a new outsourcing strategy of buying rather than building.
The deal will also see Cognizant providing IT, BPO, knowledge process outsourcing and remote infrastructure management services to UBS worldwide.
"Cognizant's broad banking and financial services expertise as well as its cultural fit with UBS complement the competencies provided by the India Service Centre today, while providing technology capabilities that expand the services we can buy from India to support our cost savings, efficiency and flexibility objectives," said UBS group chief operating officer Ulrich Korner.
The sale is expected to complete by year-end, subject to regulatory clearance. Financial details were not disclosed.
Consolidation times are back? Yet again! With erstwhile customers becoming service providers, the BPO game will only see the cut throat competition increase. Customers will now become choosier in selecting their service provider. More emphasis will be placed on the expertise and pedigree of the service provider. Acquisitions of this kind will actually make the game better and tougher for existing service providers.
One of the best acquisitions that happened in the last few months has been Tech Mahindra acquiring Satyam. Mahindra Satyam is currently doing well, and this can be gauged by the speed at which the company is adding new clients. Recently I read an interview of Mahindra Satyam BPO?s CEO in Shared Services Outsourcing Network website. The CEO seems to be pretty upbeat about the acquisition and is sharing details of the synergy between Tech Mahindra and Mahindra Satyam. You can read the interview at http://www.ssonetwork.com/topic_detail.aspx?id=6018&ekfrm=6
I am sure the combination of Tech Mahindra and Mahindra Satyam will be unchallengeable in the near future.
Posted by: Rick Mackey 02 Nov 2009
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