Outsourcing Partner International - You will be automatically redirected to EXL Service website in the next five seconds
One more outsourcing website has been re-directed now. EXL Service which was founded in India in 1999, and now listed with NYSE has taken over another giant in outsourcing – Outsourcing Partner International (OPI). OPI was founded in 2002 through the merger of a big four accounting firm's business process outsourcing (BPO) division.
There are some commonalities between the two companies. Both are pure-play BPO providers with FAO and analytics capabilities, and serving financial services clients. Everest Global, an outsourcing analyst firm has given a warning note to other players saying that now Capgemini, HP, Infosys BPO, TCS, Wipro, and WNS – need to sit up and take note of this acquisition. There is now a new kid on the block with the scale and capability to give them a run for their money.
Is it going to be true?
Will this acquisition tempt buyers more towards the combined entity?
As far buyers are concerned their ultimate goal is to get value for money. In pure-play BPO, the selection of a Buyer is no way better than your selection of a restaurant for your lunch. As far as your get value for the money with good ambience combined with good taste, you continue to go to the same restaurant. Sometimes you look for variety and look for nearby restaurants also. Unlike in software outsourcing where the buyer ultimately gets tied up with technology and its complications, pure-play BPO is more of temp jobs. This is the true vagary of this segment. In pure-play BPO, buyer is not concerned about the volume of your business but looks for the value of the money spent.
It almost looks like that the investors of OPI has abandoned the outsourcing trend initiated and now look for better value of their investment elsewhere. There is a remote possibility that the increased scale will tempt buyers to go for a provider in pure paly BPO segment. If the combined entity could have increased its portfolio of services definitely it would have increased the market value. All looks like a Gay marriage.
There are some commonalities between the two companies. Both are pure-play BPO providers with FAO and analytics capabilities, and serving financial services clients. Everest Global, an outsourcing analyst firm has given a warning note to other players saying that now Capgemini, HP, Infosys BPO, TCS, Wipro, and WNS – need to sit up and take note of this acquisition. There is now a new kid on the block with the scale and capability to give them a run for their money.
Is it going to be true?
Will this acquisition tempt buyers more towards the combined entity?
As far buyers are concerned their ultimate goal is to get value for money. In pure-play BPO, the selection of a Buyer is no way better than your selection of a restaurant for your lunch. As far as your get value for the money with good ambience combined with good taste, you continue to go to the same restaurant. Sometimes you look for variety and look for nearby restaurants also. Unlike in software outsourcing where the buyer ultimately gets tied up with technology and its complications, pure-play BPO is more of temp jobs. This is the true vagary of this segment. In pure-play BPO, buyer is not concerned about the volume of your business but looks for the value of the money spent.
It almost looks like that the investors of OPI has abandoned the outsourcing trend initiated and now look for better value of their investment elsewhere. There is a remote possibility that the increased scale will tempt buyers to go for a provider in pure paly BPO segment. If the combined entity could have increased its portfolio of services definitely it would have increased the market value. All looks like a Gay marriage.
posted by Outsourcing Tycoon @ 01:58
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