Survey of more than 200 outsourcing service suppliers finds 40-plus percent of those polled had seen increased demand levels, despite economic downturn.
Demand for outsourcing is set to outpace business investments in hardware and software as the recession hits home, says a new survey.
The survey, compiled among more than 200 outsourcing service suppliers, including companies such as Accenture, Atos Origin, Capgemini, IBM, Infosys, and Wipro, and EquaTerra's own consultants, found that more than 40 percent of those polled had seen increased demand levels, despite the economic downturn.
Demand was stronger in Europe than North America (64 percent of E.U. advisors cited increased demand compared to 25 percent in the Americas). However, 38 percent cited economic conditions as causing buyers to slow or defer outsourcing efforts.
The survey suggests that outsourcing projects are changing, with a strong focus on quick return on investment replacing longer-term initiatives to improve end-to-end business processes.
Martyn Hart, chairman of the National Outsourcing Association, says, "Outsourcing has always been associated with cost savings and now with all companies setting aggressive cost saving targets for next year we may see more and more outsourcing contracts come to fruition."
There is a also a longer-term trend toward supplier rationalization in order to simplify sourcing and governance efforts. This is because buyers are seeing an increased cost and complexity from employing multiple providers in overlapping functional areas. As Hart explains: "With the focus moving back onto cost as the main deciding factor in outsourcing, having one outsourcing supplier will minimize management, due diligence and supplier selection costs."
Stan Lepeak, EquaTerra's managing director of global research, explains that "leveraging software tools to automate and improve governance operations will be central to achieving business case objectives for multi-provider outsourcing efforts."
Tuesday, November 11, 2008
Monday, November 10, 2008
Indian cos to cut IT spend by up to 30%
Indian enterprises in the several key sectors are seen cutting spending on information technology by up to 30% this year as they try to cope with lower demand for their products and services in a slowing economy.
IT heads at leading banks, retailers and public sector companies have started deferring new technology investments, such as on unified communication, and pared annual IT budgets, Chief Information Officers (CIOs) and analysts say.
Economists estimate India’s GDP growth to moderate to 7-8% in 2008-09 from 9% in the previous financial year. ET spoke to five CIOs in the banking, finance, retail and government verticals, who confirmed that that the budget cuts were underway.
“We have postponed our investment in unified communications infrastructure, which could have cost us a few crore,” the IT head of a leading public sector bank said requesting anonymity. His bank spends over Rs 100 crore annually on IT, and he said that it could be down to around Rs 75 crore this year.
Last year, Indian companies spent almost $ 5.6 billion (Rs 26,600 crore) on software services and applications. Total domestic spending on IT, including hardware and BPO services, was around $16 billion for the year ended March 2008. “CIOs are cutting their budgets by anywhere between 20 and 30%, and in some cases even more,” said consulting firm Browne and Mohan managing partner TR Madan Mohan.
The domestic market, which grew at over 25% last year, is expected to slow down to a 15% rate this year because of lower enterprise IT spending, Mr Mohan added.
Many retailers, who were running pilot projects evaluating new technologies such as RFID, have halted them. “The management does not have patience for pilots anymore. I have been asked to stay away from all new investments and only focus on maintaining the existing systems,” a CIO said.
IT heads at leading banks, retailers and public sector companies have started deferring new technology investments, such as on unified communication, and pared annual IT budgets, Chief Information Officers (CIOs) and analysts say.
Economists estimate India’s GDP growth to moderate to 7-8% in 2008-09 from 9% in the previous financial year. ET spoke to five CIOs in the banking, finance, retail and government verticals, who confirmed that that the budget cuts were underway.
“We have postponed our investment in unified communications infrastructure, which could have cost us a few crore,” the IT head of a leading public sector bank said requesting anonymity. His bank spends over Rs 100 crore annually on IT, and he said that it could be down to around Rs 75 crore this year.
Last year, Indian companies spent almost $ 5.6 billion (Rs 26,600 crore) on software services and applications. Total domestic spending on IT, including hardware and BPO services, was around $16 billion for the year ended March 2008. “CIOs are cutting their budgets by anywhere between 20 and 30%, and in some cases even more,” said consulting firm Browne and Mohan managing partner TR Madan Mohan.
The domestic market, which grew at over 25% last year, is expected to slow down to a 15% rate this year because of lower enterprise IT spending, Mr Mohan added.
Many retailers, who were running pilot projects evaluating new technologies such as RFID, have halted them. “The management does not have patience for pilots anymore. I have been asked to stay away from all new investments and only focus on maintaining the existing systems,” a CIO said.
Monday, November 3, 2008
India’s Outsourcing Market
Technology has made the world a global village and this impact is felt not only by the common man but also by the companies in developed countries especially the United States. The phenomenon of outsourcing refers to shifting the non-core jobs of an organization to another organization usually located in a different geographical location in order to increase efficiency and reduce costs.
This phenomenon certainly benefited a lot from the modern networking and communication technologies since it has become very easy for companies located in different parts of the globe to coordinate and cooperate to get the work done in other regions where labor costs are relatively lower and ample skilled labor is available.
Outsourcing in India
One of the countries commonly referenced with the word outsourcing is India which is one of the fastest growing economies of the world today. India has an immense pool of skilled labor and educated people who have a good knowledge of English and are willing to work at relatively lower wages than an average source in say Europe or USA.
All these factors have combined to make India the outsourcing king of the world. Figures from National Association of Software and Service Companies (Nasscom) which is the primary association representing the IT industry in India, noted that India would earn approximately US $ 60 billion by the end of this decade, through the outsourcing exports, and the rate of growth of outsourcing industry would be in the region of nearly 33%.
From this projected growth of 60 billion US dollars, nearly one third would be from IT services and software exports while another one sixth would be from business process outsourcing and call center businesses. In fact so great is the projected growth that the current educational infrastructure would not be able to deal with the shortage of skills and by the end of the current decade; India would be short by nearly half a million of trained workforce for the outsourcing industry.
Figures also show that during the first half of the last year (i.e. 2007) India far surpassed other major players in the Asia Pacific region, namely Japan and Australia, bagging nearly 30% of the contracts while Japan and Australia followed suit by having a share of 22 % and 2% respectively.
The Downside
Despite such heavy growth and potential for further growth, some experts also express reservations about this trend of outsourcing being continued in the long run. There are several reasons cited for these doubts. One strong reason is that with the rise of outsourcing and relatively lower rise in skilled manpower availability, the wages are tending to rise. Since cost savings is one of the major lucrative factors which govern the choice of outsourcing destinations it would go against India in the longer run.
It is estimated that work which cost somewhere in the region of 125 USD per month now costs somewhere in the region of 200 USD per month. This may not seem to be a significant rise but given the number of workers this is certainly a cause for concern.
Nations such as Malaysia, China, Mexico, New Zealand, West Africa and so forth are becoming equally lucrative as outsourcing markets. This would certainly affect the position of India though there is no such danger that outsourcing will be fully gone in favor of these countries. India with its vast supply of skilled English speaking population and a good infrastructure of educational institutes does have the assurance that at least in the near future its position will be very strong regarding outsourcing.
The The fears of the Indian outsourcing market being eroded are echoed in the research findings from research firm Gartner Inc which states that unless something is done about rising wages and labor shortages in India, that companies abroad would certainly be shy of outsourcing to India in the future. They cite the example of Ireland to prove that even Ireland lost substantial outsourcing business due to such problems and India was at advantage at that point, but now Ireland will be at the receiving end if these trends continue.
Data Center Outsourcing & India
When we talk about outsourcing we normally mean IT services, business process outsourcing, legal process outsourcing and so forth, but this discussion cannot be complete without discussing the aspects of data center outsourcing as well. Now logically we might think that data centers would be the last thing a company would like to outsource mainly because of confidentiality issues relating to the vital and important data which is stored on the servers of a company.
The main reasons which prompt parent companies to outsource data center services include complexity of business demands in the current technological arena, data growth, staffing issues and so forth. Though currently India only holds about 2% market share of the total data center outsourcing business, it is expected to grow by nearly 22% in the years to come. These data center operations which are given by foreign companies to specific vendors are also known as managed service providers or MSPs. In recent months we have heard of several major players in the market such as IBM and HP developing global data centers for the purpose of managed data center services.
This phenomenon certainly benefited a lot from the modern networking and communication technologies since it has become very easy for companies located in different parts of the globe to coordinate and cooperate to get the work done in other regions where labor costs are relatively lower and ample skilled labor is available.
Outsourcing in India
One of the countries commonly referenced with the word outsourcing is India which is one of the fastest growing economies of the world today. India has an immense pool of skilled labor and educated people who have a good knowledge of English and are willing to work at relatively lower wages than an average source in say Europe or USA.
All these factors have combined to make India the outsourcing king of the world. Figures from National Association of Software and Service Companies (Nasscom) which is the primary association representing the IT industry in India, noted that India would earn approximately US $ 60 billion by the end of this decade, through the outsourcing exports, and the rate of growth of outsourcing industry would be in the region of nearly 33%.
From this projected growth of 60 billion US dollars, nearly one third would be from IT services and software exports while another one sixth would be from business process outsourcing and call center businesses. In fact so great is the projected growth that the current educational infrastructure would not be able to deal with the shortage of skills and by the end of the current decade; India would be short by nearly half a million of trained workforce for the outsourcing industry.
Figures also show that during the first half of the last year (i.e. 2007) India far surpassed other major players in the Asia Pacific region, namely Japan and Australia, bagging nearly 30% of the contracts while Japan and Australia followed suit by having a share of 22 % and 2% respectively.
The Downside
Despite such heavy growth and potential for further growth, some experts also express reservations about this trend of outsourcing being continued in the long run. There are several reasons cited for these doubts. One strong reason is that with the rise of outsourcing and relatively lower rise in skilled manpower availability, the wages are tending to rise. Since cost savings is one of the major lucrative factors which govern the choice of outsourcing destinations it would go against India in the longer run.
It is estimated that work which cost somewhere in the region of 125 USD per month now costs somewhere in the region of 200 USD per month. This may not seem to be a significant rise but given the number of workers this is certainly a cause for concern.
Nations such as Malaysia, China, Mexico, New Zealand, West Africa and so forth are becoming equally lucrative as outsourcing markets. This would certainly affect the position of India though there is no such danger that outsourcing will be fully gone in favor of these countries. India with its vast supply of skilled English speaking population and a good infrastructure of educational institutes does have the assurance that at least in the near future its position will be very strong regarding outsourcing.
The The fears of the Indian outsourcing market being eroded are echoed in the research findings from research firm Gartner Inc which states that unless something is done about rising wages and labor shortages in India, that companies abroad would certainly be shy of outsourcing to India in the future. They cite the example of Ireland to prove that even Ireland lost substantial outsourcing business due to such problems and India was at advantage at that point, but now Ireland will be at the receiving end if these trends continue.
Data Center Outsourcing & India
When we talk about outsourcing we normally mean IT services, business process outsourcing, legal process outsourcing and so forth, but this discussion cannot be complete without discussing the aspects of data center outsourcing as well. Now logically we might think that data centers would be the last thing a company would like to outsource mainly because of confidentiality issues relating to the vital and important data which is stored on the servers of a company.
The main reasons which prompt parent companies to outsource data center services include complexity of business demands in the current technological arena, data growth, staffing issues and so forth. Though currently India only holds about 2% market share of the total data center outsourcing business, it is expected to grow by nearly 22% in the years to come. These data center operations which are given by foreign companies to specific vendors are also known as managed service providers or MSPs. In recent months we have heard of several major players in the market such as IBM and HP developing global data centers for the purpose of managed data center services.
Wednesday, October 22, 2008
India's tech spending seen growing 17-24% by 2010
Asia Pacific’s IT spending is expected to grow about 10-16% till 2010, beating developed markets, according to a study by consulting firm
Zinnov. India and China, in particular, represent large untapped markets in the region.
While India’s IT spending is likely to grow between 17.6-24% by 2010, China would grow 10-13%, according to the study. This is in comparison to the 3.3-6.5% increase expected in global IT spending. Expenditure on hardware, software and IT-BPO services comes under IT spending.
“With the shrinking IT budgets of the developed world set to shrink further, IT services companies have been working on realigning growth strategies and looking at opportunities in countries such as India and China,” said Zinnov advisory services engagement manager Chandramouli CS.
India’s IT spending currently totals $17 billion, while China’s IT spending stands at about $21 billion.
Zinnov says North America would see its IT spending grow about 5% and Europe, 4-5%. Spends in the US would move in the range 2.5-6%, reflecting a dip in the nearer future and then picking up towards 2010.
Mr Chandramouli says companies in emerging markets, which are in their growth phase, have a greater requirement for building IT infrastructure. A recent CIO survey in India showed that most domestic companies don’t have scalable IT systems.
The opportunity in India and China is also highlighted by the large presence of small and medium businesses (SMBs) in these emerging markets. According to IDC, about 23.4 million SMBs – nearly one-third of the global total – are located in Asia-Pacific, excluding Japan.
These also represent an untapped market with a large potential. For instance, the SMB share of IT spending in India is forecast to grow from 38% per cent currently to over 50% by 2015.
Zinnov. India and China, in particular, represent large untapped markets in the region.
While India’s IT spending is likely to grow between 17.6-24% by 2010, China would grow 10-13%, according to the study. This is in comparison to the 3.3-6.5% increase expected in global IT spending. Expenditure on hardware, software and IT-BPO services comes under IT spending.
“With the shrinking IT budgets of the developed world set to shrink further, IT services companies have been working on realigning growth strategies and looking at opportunities in countries such as India and China,” said Zinnov advisory services engagement manager Chandramouli CS.
India’s IT spending currently totals $17 billion, while China’s IT spending stands at about $21 billion.
Zinnov says North America would see its IT spending grow about 5% and Europe, 4-5%. Spends in the US would move in the range 2.5-6%, reflecting a dip in the nearer future and then picking up towards 2010.
Mr Chandramouli says companies in emerging markets, which are in their growth phase, have a greater requirement for building IT infrastructure. A recent CIO survey in India showed that most domestic companies don’t have scalable IT systems.
The opportunity in India and China is also highlighted by the large presence of small and medium businesses (SMBs) in these emerging markets. According to IDC, about 23.4 million SMBs – nearly one-third of the global total – are located in Asia-Pacific, excluding Japan.
These also represent an untapped market with a large potential. For instance, the SMB share of IT spending in India is forecast to grow from 38% per cent currently to over 50% by 2015.
Saturday, October 11, 2008
Towards More Efficient Data Centers
The main three areas of focus of data center 3.0 are consolidation, virtualization and automation. The trend in data centers is to go from many data centers in an enterprise to fewer. The main drivers are power, cooling, space constraints, and the massive proliferation of underutilized machines. The focus of our consolidation is to bring greener data centers and improve capex and opex.
Also, Application delivery is something that CIOs need to concentrate on. Suppose I send you a file and you make some changes, and this goes back and forth a thousand times, and each file transfer takes 4 milliseconds, I can spend 40 minutes for the exchange of one PowerPoint presentation. Instead, if I consolidate on what is called the wide area application services (WAAS), my network looks into your content and instead of sending the entire file, and it sends only the changes back and forth. Now, in this case, I'm using my bandwidth more efficiently. We have built this into our networks.
One more area of importance is compression. Today, all sorts of traffic like file traffic, Web traffic, exchange traffic, and video traffic flows through the network. Compression can make the network respond faster and give huge savings. It will also allow remote users to “feel” local by giving them very good response time. Think of the benefits for areas like finance, where one millisecond can represent millions of rupees.
Also, Application delivery is something that CIOs need to concentrate on. Suppose I send you a file and you make some changes, and this goes back and forth a thousand times, and each file transfer takes 4 milliseconds, I can spend 40 minutes for the exchange of one PowerPoint presentation. Instead, if I consolidate on what is called the wide area application services (WAAS), my network looks into your content and instead of sending the entire file, and it sends only the changes back and forth. Now, in this case, I'm using my bandwidth more efficiently. We have built this into our networks.
One more area of importance is compression. Today, all sorts of traffic like file traffic, Web traffic, exchange traffic, and video traffic flows through the network. Compression can make the network respond faster and give huge savings. It will also allow remote users to “feel” local by giving them very good response time. Think of the benefits for areas like finance, where one millisecond can represent millions of rupees.
Remote Infrastructure Management
The Indian offshoring success story is a phenomenon that has changed the way business is done globally. And India has constantly innovated to push the outsourcing envelope. After having created Application Development and Maintenance (ADM) and Business Process Outsourcing (BPO), we now have another addition to the outsourcing saga: Remote Infrastructure Management Services (RIMS).
RIMS comprise of day to day management of IT infrastructure needs of an organization from a remote location (although services are available that combine remote with on-site). RIMS constitutes management of networks, security, servers, storage devices, applications, desktops and a 24x7 help desk. Increasingly, enterprises worldwide have been waking up to the challenges involved in ensuring the availability and the predictability of their networks and devices -- and have stumbled across this RIMS solution.
Traditionally this need has been fulfilled by in-house teams or outsourced to local as well as large traditional IT services players.
Driving the outsourcing of IT infra is the fact that, technology is changing rapidly and today even SMBs are deploying servers and network storage devices (their 180 GB desktop hard drives are not good enough!). As price of devices fall and technological changes become more rapid, it is labor which maintains the IT infra that has become the single largest contributory factor to costs.
You can see the developing picture: lowered device prices, higher technology quotient, wide usage of technology across industry, compliance requirements, growing shortage of qualified talent, increasing cost of IT infrastructure management, retention issues with IT talent...The answer? Offshore IT infrastructure management to markets where talent is easily available and where tools and processes have been developed to manage your infrastructure remotely.
The good news is that newer trends in technology, such as virtualization and cloud computing are creating win-win situations for the customers as well as for the vendors. These technologies are paving the way to consolidation and standardization of IT infrastructure for global players. The reduction in complexity makes it less risky for the clients to outsource to RIMS vendors.
On their part, vendors have enhanced their capabilities in managing diverse technologies by creating training, to rapidly improve the skill sets of their employees, and are placing a growing emphasis on rigorous quality processes. Additionally, as the industry is maturing, IT infrastructure management tools available in the market have simplified. These tools are integrated with governance features which address the management of multiple vendors.
Beyond the technology and delivery aspect, one significant change these technologies are bringing is that of mindset. CIOs are now more comfortable with the thought of having the IT operations hosted and delivered out of locations outside the enterprise premises and Global Delivery Models are strongly gaining acceptance in the IT infrastructure management domain.
The good news for RIMS adopters is that Indian vendors have been innovating not just on the service front, but on the pricing front as well. Today there are several pricing models to choose from ? device based, outcome based, input based and a combination of all.
Not surprisingly, the mid-sized deals segment of the market has become an important source of growth for RIMS providers.
RIMS is clearly a specialist play. The rigorous processes and operations combined with the critical nature of business makes it imperative for the vendors to specialize. A RIMS vendor focused in this area would be able to provide enhanced quality of service as a result of aligning tools, processes and skill sets to the industry needs.
And to us, the biggest trend is the choice that RIMS adopters are making ? by carefully choosing specialist players over others to manage their infrastructure.
RIMS comprise of day to day management of IT infrastructure needs of an organization from a remote location (although services are available that combine remote with on-site). RIMS constitutes management of networks, security, servers, storage devices, applications, desktops and a 24x7 help desk. Increasingly, enterprises worldwide have been waking up to the challenges involved in ensuring the availability and the predictability of their networks and devices -- and have stumbled across this RIMS solution.
Traditionally this need has been fulfilled by in-house teams or outsourced to local as well as large traditional IT services players.
Driving the outsourcing of IT infra is the fact that, technology is changing rapidly and today even SMBs are deploying servers and network storage devices (their 180 GB desktop hard drives are not good enough!). As price of devices fall and technological changes become more rapid, it is labor which maintains the IT infra that has become the single largest contributory factor to costs.
You can see the developing picture: lowered device prices, higher technology quotient, wide usage of technology across industry, compliance requirements, growing shortage of qualified talent, increasing cost of IT infrastructure management, retention issues with IT talent...The answer? Offshore IT infrastructure management to markets where talent is easily available and where tools and processes have been developed to manage your infrastructure remotely.
The good news is that newer trends in technology, such as virtualization and cloud computing are creating win-win situations for the customers as well as for the vendors. These technologies are paving the way to consolidation and standardization of IT infrastructure for global players. The reduction in complexity makes it less risky for the clients to outsource to RIMS vendors.
On their part, vendors have enhanced their capabilities in managing diverse technologies by creating training, to rapidly improve the skill sets of their employees, and are placing a growing emphasis on rigorous quality processes. Additionally, as the industry is maturing, IT infrastructure management tools available in the market have simplified. These tools are integrated with governance features which address the management of multiple vendors.
Beyond the technology and delivery aspect, one significant change these technologies are bringing is that of mindset. CIOs are now more comfortable with the thought of having the IT operations hosted and delivered out of locations outside the enterprise premises and Global Delivery Models are strongly gaining acceptance in the IT infrastructure management domain.
The good news for RIMS adopters is that Indian vendors have been innovating not just on the service front, but on the pricing front as well. Today there are several pricing models to choose from ? device based, outcome based, input based and a combination of all.
Not surprisingly, the mid-sized deals segment of the market has become an important source of growth for RIMS providers.
RIMS is clearly a specialist play. The rigorous processes and operations combined with the critical nature of business makes it imperative for the vendors to specialize. A RIMS vendor focused in this area would be able to provide enhanced quality of service as a result of aligning tools, processes and skill sets to the industry needs.
And to us, the biggest trend is the choice that RIMS adopters are making ? by carefully choosing specialist players over others to manage their infrastructure.
The Indian IT growth
With GDP growth of about 9 percent and wider expectations from analysts that in near future Indian economy can rule the globe, Indian business is on a roller coaster ride. Indian business, especially IT and ITeS segment is the backbone of this commendable GDP growth. Although IT sector was doing reasonably well, however it seems retrenchment has hit India also. The Indian counterparts have been constantly appraised, no wonder Indian IT industry has spearheaded towards consolidated global expansion.
Sky is the limit, when you know where you are heading to. Correlating these words with success of Indian IT, these are the key acquisitions made by Indian IT.
1. Infosys, the leading IT giant of India, recently announced its plans to acquire UK based consultancy, Axon Group plc. The deal will be cash based and company will purchase SAP consultant Axon for USD753 million. The deal will be a landmark in Infy’s history as will give a ready made access to existing market of Axon in Europe. Also, Infosys can leverage Axon’s strength and consultation expertise to win big transformation deals in US and Europe, where Axon has a strong foothold. Last year, the Indian software giant announced its plans to acquire Philips Global’s finance and accounts BPO for assured revenue of USD200 million.
2. The second big acquisition is made by outsourcing giant, Wipro Technologies. The outbound deal by Wipro purchasing US based InfoCrossing for price USD 600 million. It is a mega deal. Such acquisitions are key propellers for Indian IT firms as they help companies to enhance their foothold in domestic market along with the added advantage of resourcing. The biggest advantage of this acquisition is the direct entry to US markets where Infocrossing has strong foothold. Also, the company can leverage its hosted and managed services to provide IT outsourcing solutions.
3. The another key acquisition was made in BPO segment. In July, this year WNS Holdings Ltd. announced its plans to acquire BPO business of UK based insurance major, Aviva. WNS acquired Avivas BPO business Aviva Global Services for USD 228 million. Under the purchase agreement, company took over all shares of AGS and took complete control over operations in Bangalore, Colombo, Pune and Chennai. Beside these captive operations, the WNS will offer BPO services to Avivas UK and Canadian operations.
These were the acquisitions that transformed the Indian IT scenario and made Indian companies to unfurl their flag of expansion on foreign lands. Such acquisitions offer not only a strong presence in domestic markets but also provide them chance to be renowned as global brand.
Sky is the limit, when you know where you are heading to. Correlating these words with success of Indian IT, these are the key acquisitions made by Indian IT.
1. Infosys, the leading IT giant of India, recently announced its plans to acquire UK based consultancy, Axon Group plc. The deal will be cash based and company will purchase SAP consultant Axon for USD753 million. The deal will be a landmark in Infy’s history as will give a ready made access to existing market of Axon in Europe. Also, Infosys can leverage Axon’s strength and consultation expertise to win big transformation deals in US and Europe, where Axon has a strong foothold. Last year, the Indian software giant announced its plans to acquire Philips Global’s finance and accounts BPO for assured revenue of USD200 million.
2. The second big acquisition is made by outsourcing giant, Wipro Technologies. The outbound deal by Wipro purchasing US based InfoCrossing for price USD 600 million. It is a mega deal. Such acquisitions are key propellers for Indian IT firms as they help companies to enhance their foothold in domestic market along with the added advantage of resourcing. The biggest advantage of this acquisition is the direct entry to US markets where Infocrossing has strong foothold. Also, the company can leverage its hosted and managed services to provide IT outsourcing solutions.
3. The another key acquisition was made in BPO segment. In July, this year WNS Holdings Ltd. announced its plans to acquire BPO business of UK based insurance major, Aviva. WNS acquired Avivas BPO business Aviva Global Services for USD 228 million. Under the purchase agreement, company took over all shares of AGS and took complete control over operations in Bangalore, Colombo, Pune and Chennai. Beside these captive operations, the WNS will offer BPO services to Avivas UK and Canadian operations.
These were the acquisitions that transformed the Indian IT scenario and made Indian companies to unfurl their flag of expansion on foreign lands. Such acquisitions offer not only a strong presence in domestic markets but also provide them chance to be renowned as global brand.
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