ITC Infotech to pull out of BPO JV with US firm Sitel

The move comes after the five-year pact between the two companies ended in May this year. Deserting the option to extend the agreement, ITC Infotech has communicated its unwillingness to renew the deal, it is learnt.

ITC Infotech had an equal joint venture with US-based BPO major ClientLogic, which acquired Sitel Corporation for $450 million in last year. This merger was later christened Sitel Corporation.

According to sources, the contract had a clause by which ITC Infotech and Sitel can terminate the joint venture immediately or over a period of 18 months. "It is likely that these players will be going on their own ways," the sources said. No comments were available from these companies.

The JV employs around 2,500 people and services many Fortune 500 companies by providing tech support and voice-based operations. The joint venture has a topline of $25-30 million, the sources said.

Besides the JV, Sitel has four centres in India which are being operated as subsidiaries. Cumulatively these centres employ around 4,000 persons and their topline is estimated to be $60 million.

"Sitel is eager to consolidate its Indian operations under one umbrella," the source said. This is the second time Sitel is consolidating its joint venture operations in India. The company had a joint venture with TCS, which was later bought out.

Sitel globally employs around 70,000 people across 145 centres in 28 countries and is majority owned by Canada's Onex Corporation and a few private equity funds.