IBM will buy Daksh eServices, a business process
outsourcing (BPO) company near Delhi.
IBM hopes to enhance its ability to deliver customer
relationship management and back-office services to its clients in
various industries by this acquisition.
It also hopes to increase the scope of IBM's global network of
22 business transformation delivery centres, adding capabilities in
India and the Philippines.
The company is not new to using India to deliver low cost
services to its customers. The 9,000 employees at its Bangalore
subsidiary handle software development for both IBM and its
clients.
The proposed acquisition of Daksh by IBM is a continuation of
the consolidation in the Indian BPO industry, according to Ravindra
Datar, principal analyst for IT services and BPO at Gartner India
Research and Advisory Services.
"Successful businesses in the BPO space in India that want to
expand further abroad, need the brand, marketing muscle and
financial support from a large multinational company or a large
Indian corporate house," Datar said. "The acquisition of Daksh by
IBM will fit into this category."
Daksh eServices is one of India's largest independent BPO
companies. It offers customer care, technical support and
back-office transaction processing services to companies worldwide,
including Amazon.com.
In addition to its BPO facilities in India, Daksh set up a BPO
facility in Manila in January that is expected to employ 1,000
people by the end of the year.
The proposed acquisition of Daksh is the first that IBM has
announced in India in the BPO space. The transaction, which is
subject to Indian regulatory approvals, is expected to close in
May. The financial details of the buyout were not disclosed.
After the acquisition, Daksh will become a part of IBM Business
Consulting Services, according to a spokeswoman for IBM India, who
added that all the staff at Daksh's operations would be absorbed by
IBM after the acquisition. Daksh currently has about 6,000 staff
spread over four facilities in Gurgaon and a fifth in Mumbai.
John Ribeiro writes for IDG News Service