Infy eyes mid-ticket BPOs in US, Europe

Companies which can bolster our offering and have a unique platform or IPR to offer transaction based services will be a good fit - Infosys

 

After the failed effort to acquire UK-based SAP consulting major, Axon Plc, which was eventually bagged by HCL Technologies for £441 million in December last year, Infosys Technologies is looking at a string of mid-ticket acquisitions in the US and the European market. Business Process Outsourcing (BPO) is one of the areas where the company is actively scouting for acquisitions.

 

"BPO is one of our target areas for acquisition. We are also looking at companies in the consulting and the infrastructure management space," said a company official. However, the official added that the company was not looking at big-ticket acquisitions and has an outlay of $100-$200 million for deals in each of these services. Infosys had cash and cash equivalents of over $2 billion as on March 2009.

 

"Infosys BPO is strong in the telecom and financial services verticals. Therefore, companies which can bolster our offering in this space and have a unique platform or IPR to offer transaction based services will be a good fit," said the official. In an effort to derive better margins and reduce the dependency on headcount, majority of India's top BPOs are trying to move away from voice-based offerings as they increase their focus on transaction-based services and experiment with newer models of pricing like output-based pricing.

 

Source: The Financial Express