UBS sells Indian BPO arm to Cognizant

Deal also includes a services contract between the two firms

UBS's new outsourcing strategy focuses on buying rather than building

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.