Capgemini eyeing BPO space
SOURCE: NDTV
DATE: June 16th, 2008
Mohit Soapbox:
Will be interesting to see how Capgemini manages its growth. There is an upwards trend in opportunities in Europe and Europe based firms have struggled to take advantage of the opportunities. Global firms and Indian based vendors have been able to position their offerings better for the growing European markets. A merger of Capgemini and an Indian Vendor still seems like a remote possibility. I still wonder if Indian firms are ready to do large non-Indian acquisitions. Wipro has done one earlier with Infocrossing but they continue to operate as separate entities. Will it take a strategic acquisition by and Indian firm to become a ‘global’ brand or are the Indian firms ready to embrace global management
ARTICLE
Global consulting and IT services firm Capgemini is ramping up its presence in emerging markets like India to counter a slowdown.
One area where Capgemini is looking to scale up is the BPO space where they are actively searching for targets.
Dismissing the many rumors of a possible takeover by a large Indian IT firm, Capgemini says there is no possibility of a merger with an Indian IT firm like Infosys or Wipro.
“I see no value in it at least not for the next 5 years,” said Paul Hermelin, CEO, Capgemini.
Hermelin accepts that Wipro founder Azim Premji did meet with Capgemini’s founding chairman early this year but says that a deal with an Indian IT firm does not make strategic sense.
Capgemini may have ruled out getting acquired but it is actively looking at acquiring assets in India to strengthen its position against the Indian IT players.
In particular, Capgemini is looking to build its presence in the BPO space at a time when off-shoring from the European market is picking up.
“We are looking at a lot of options and BPO is on our radar, for which decision will be taken soon,” said Salil Parekh, Executive Chairman, Capgemini India.
The bid to build its BPO presence is part of Capgemini’s strategy to beat the slowdown in western markets.
As western economies slow down companies like Capgemini are trying to ensure they have a strong presence in developing markets to maintain growth in their own operations.
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