Looks at acquisitions to get entry into newer geographies, offer new services.
Infosys BPO, the business process outsourcing arm of India’s second-largest IT services firm Infosys is pitching for more number of transformational deals across various sectors to fuel its growth as a part of its new strategy.
“We are seeing lot of transformational deals across various verticals like banking, financial services and insurance, manufacturing and utilities. Clients are now more and more looking at sourcing both IT as well as BPO services from one vendor. To this respect, the transformational deals won by Infosys will also help the BPO business,” said Swami Swaminathan, CEO & MD of Infosys BPO.
In the fiscal ended March 31, 2011, Infosys BPO reported revenues of $323.06 million with a net profit of $43.16 million.
Infosys BPO which services 103 clients as on September 30, 2011, derives close to 40 per cent of its business from the transformational deals executed by Infosys.
“Besides, our focus on products, platforms and solutions will also act as a catalyst for growth of the BPO revenues,” he added.
Swaminathan said Infosys BPO was also actively looking at acquisitions to get an entry into newer geographies and introduce new service offerings.
“For us, acquisitions are not to increase the topline or to commoditise any service offering. Acquisition is key to our strategy. However, we have not finalised any target as of now, though some people are in touch with us,” added Swaminathan.
The United States accounts for about half of Infosys BPO’s revenues, while 38 per cent of its revenues come from Europe. Infosys BPO has around 12 centres across the globe out of which seven are located outside of India. In 2007, Infosys acquired the finance and accounting BPO business of Philips spread across three countries, to boost its BPO business.
In 2009, Infosys BPO acquired US-based McCamish Systems for $58 million which gave it an entry into the platform-based BPO services space. Infosys has a cash and cash equivalents of around Rs 18,601 crore as on September 30, 2011.
