- Blackstone Sells Stake In BPO Co Intelenet For $634M; Serco New Owner
In one of the biggest private equity exits from an Indian firm, Blackstone, along with other shareholders of the business process outsourcing company Intelenet, have struck a deal to sell the firm to UK’s Serco for £385 million ($634 million or Rs 2,850 crore). This includes contingent cash payments of up to £50m through to December 2013. These are dependent on the delivery of additional revenue to Intelenet from Blackstone portfolio companies and Barclays.
- As Indian companies grow in the U.S., recruiting in US on the rise
New York — Ray Capuana paces the rows of cubicles in a haggard high-rise a stone’s throw from Wall Street as his people hustle the phones and hope for a bonus check.His employees are not bond traders, though. They are call center workers. Many are African Americans without college degrees. Some lack high school diplomas. They work for a Mumbai-based company called Aegis Communications.
- Outsourcing Education: Does It Matter If Someone in India Corrected Your College Paper?
Plenty of American businesses have outsourced jobs across the globe, and now colleges are jumping on the bandwagon. Colleges are hiring online “tutors” to check student work for grammar and other English mistakes and provide the kind of feedback students used to get from professors or teaching assistants before budget cuts resulted in staff layoffs and unmanageably large class sizes.Here’s how it works: Schools like West Hills Community College in central California hire services like Virginia-based RichFeedback.
- Pramod Bhasin Steps Down As Genpact CEO; Tiger Tyagarajan Takes Over
In a surprising move, Pramod Bhasin, who founded Genpact Ltd (GE Capital International Services) in 1997 as a unit within General Electric, will be stepping down from the role of the company’s chief executive and board member. He will continue as a non-executive vice chairman. NV ‘Tiger’ Tyagarajan will takes his place as the new President and CEO, who will be essentially coming back to this role as he was the CEO between 1999 and 2002 (it’s not clear what role was Bhasin occupyuing at that time).
- 3i Infotech Sells US Payments Unit To Cerberus Capital For $137M
Three years after striking back-to-back deals to acquire two firms in the USA within a span of just seven months, ICICI Group-backed IT & ITES firm 3i Infotech has decided to sell both the assets for just a tad over what it paid to buy them to strengthen its balance sheet.The company has decided to sell its US-based Global Billing & Payments unit, comprising of Regulus Group and J&B Software, to an affiliate of private equity firm Cerberus Capital Management, L.P.
- BPO sector likely to grow faster than IT services
Acquisitions by Indian outsourcing companies are continuing unabated, driven by an increasing need to both deepen and broaden their capabilities in their search for growth and scale.A key driver of this activity is a little noticed long-term trend that should become more obvious as the years roll by: that of the business process outsourcing (BPO) sector growing faster than information technology (IT) services outsourcing.
- Analysis: Will Costs Drive Firms Home?
For years, the U.S. manufacturing sector seems to have been sliding into the Slough of Despond.Companies have been eagerly outsourcing to lower-cost venues such as China, India and Mexico. And with the production go jobs. Occasionally a company might bring some manufacturing back to the U.S. But it’s a trickle, and the exceptions seem to prove the rule. General Electric, Caterpillar, a handful of others—the list is short.
- EXL to buy Outsource Partners for $91 mn
Nasdaq-listed outsourcing company EXL Service Holdings Inc. said on Tuesday it has agreed to acquire Outsource Partners International (OPI) for $91 million (`400 crore).OPI is one of the largest pure-play providers of complex finance and accounting outsourcing services outsourcing in the market, Rohit Kapoor, president and chief executive of the New York-headquartered EXL, said, explaining the acquisition.
- Firstsource Solutions To Form JV With Lankan Telco Dialog Axiata
Mumbai-based Firstsource Solutions Ltd (formerly known as ICICI OneSource) is planning to form a joint venture with Sri Lanka-based Dialog Axiata Plc., a telecom service provider. Firstsource will invest and acquire 74 per cent of Dialog Business Services, the recently formed BPO venture of the Dialog Axiata Group, and rename it as Firstsource-Dialog Solutions.
- HOV Services Arm Merges With SourceCorp; Lands $625M Funding
Business process outsourcing company HOV Services Ltd, which is a part of the portfolio of Santa Monica-based private equity firm Handson Ventures, has completed the merger of its subsidiary HOV Services LLC with private equity firm Apollo Management’s portfolio firm SourceCorp.The combined US-based firm, named as SourceHOV Inc., becomes a 50:50 joint venture between HOV Services Ltd and SourceCorp with annual revenues of around $481 million and over 14,000 people on board.
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