Cognizant to buy UBS back office ? – techgoss news release
Date: 10/1/2009
SOURCE: TechGoss.com
As per the article in techgoss (Cognizant to buy UBS back office) looks like Cognizant is all set to buy UBS back office and make a decent size foray into BPO. Cognizant which has primarily focused on IT services, in the past has tried their hand on establishing a BPO business but never seem to have fully engaged in building it out. This could be an interesting foray into the BPO space with a captive acquisition and committed revenues and give Cognizant a BPO Platform to scale on. Cognizant which has a large percentage of their revenues coming from financial services firms could use this bolt on acquisition to expand their service offerings to their existing IT clients.
UBS supposedly has hired Deloitte to look for a potential buyer of their BPO operations in Hyderabad and Krakow, Poland. Like many other captives, UBS seem to be looking to get out of running their own operations in India and handing the workings to a vendor. UBS had spun out its analytics group into a management buyout firm – Verity Knowledge Solutions where UBS was going to have a stake in the firm. Around 150 people were expected to be part of the Verity Knowledge Solutions.
A number of firms were looking to buy out the UBS centers including Infosys, Wipro, WNS, Genpact.
A recent article in Economictimes put the number of people in UBS BPO at around 2100 in Hyderabad and 250 in Krakow Poland with the center being valued at $200 million. (LINK) . It will be interesting given the fact that UBS has Infosys, Wipro also as their key preferred vendors for IT and BPO. Wipro also supposedly helped set up the captive in India for UBS.
With UBS still struggling to get out of the hole and aggressive cost cutting , maybe their is enough business for all the vendors to share!
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