UBS Indian BPO captive on the block ?
Date: June 18th, 2009
Original picture: panoramio.com
According to recent article in economictimes (LINK) UBS is putting their BPO/KPO unit for sale. The death march for captives in India continues if the story is true. Citibank, AOL and number of others have exited the captive business and running a cost center in India. UBS center was one of the more recent one’s set up over the last 3 to 4 years with much fanfare in Hyderabad. UBS also is supposed to have large relationship with other Indian vendors including Wipro and Infosys.
According to the article UBS has around 2,100 people in India and 250 in Poland and is looking for a price tag of $200 million.
Interestingly UBS earlier had carved out a piece of the ISC center in hyderabad , the KPO business serving investment bank and did a management buyout and retaining 50% stake in the new organization. The KPO unit is called Verity Knowledge Solutions.
At this rate , captives are going to be part of history soon. Vendors with expertise and existing relationships with their companies in the US are best suited to be the new owners of these units. Cost of running captives in India, plus the upside potential continues to be factors why companies are looking to exit.
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