Hewlett-Packard-owned EDS closes in on Fidelity BPO

The deal expected to close in 3-4 weeks, with EDS securing a long-term outsourcing contract worth over $500 million from Fidelity

 

Hewlett-Packard (HP)-owned EDS is leading the race to acquire Fidelity's IT captive operations in India in a transaction worth roughly $150 million, three people close to the development said. ET has also learnt that the deal is expected to close in 3-4 weeks, with EDS securing a long-term outsourcing contract worth over $500 million from Fidelity, the world's largest mutual fund company.

 

Fidelity is also a significant client for Infosys Technologies, with over 3,000 employees working on the account. The domestic tech giant secures roughly $50 million annually from the contract. People familiar with the discussions said Fidelity could consolidate its outsourced work, if a deal with HP-EDS combine is concluded. If this happens, Infosys could end up losing one of its top 10 clients.

 

Source: The Economic Times