Private Equity leveraging India Offshoring capabilities

SOURCE: LiveMint
DATE: July 29th, 2008
ARTICLE

List of some recent transactions where PE firms are leveraging offshoring to rationalize their portfolio companies. Given that the market exit strategies are getting fewer and delayed the PE firms are looking to leverage platforms to create cost effective operational platform. The PE clients we work with are evaluating global operating platform and doing portfolio rationalization to manage operating cost. A # of these firms do have an offshore presence or relationship with offshore vendor as part of their portfolio firms and are looking for the right strategy to leverage the operations.

 Blackstone

Bought BPO firm Intelenet Global Services Pvt. Ltd in June 2007, transferred back-office
services from other portfolio companies to Intelenet. Signed a $1.2 billion contract with TCS for Nielsen Co. in October 2007.

3i Group Created internal unit to oversee offshoring for its portfolio companies, negotiated rates with  Infosys BPO that apply to all of its holdings.

Baring Private Equity Partners

Acquired HR outsourcing firm Secova in 2006, uses firm to service other companies in its portfolio from the US.

RW Baird

Works with outsourcing advisers Tholons to offshore services from its portfolio companies; everything ranging from payment processing to analytics.

FT Ventures

Setting up operations in India for some of its companies, including a document processing firm.

Cerberus

$120 million contract with TCS for US auto maker Chrysler Llc.

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