Customer services provider Convergys to buy Stream Global

Customer services provider Convergys to buy Stream Global

M&A/ Alliances, Outsourcing News/ PR
Customer management services provider Convergys Corp (CVG.N) said it would buy rival Stream Global Services Inc from its private equity owners for $820 million in cash in its largest ever deal to expand its client base and international presence. Shares of Cincinnati, Ohio-based Convergys jumped 20 percent after the bell on Monday.Stream's STRGB.UL clients include Hewlett-Packard (HPQ.N), Microsoft Corp (MSFT.O), Dell Inc, Salesforce.com Inc (CRM.N), Western Digital Corp (WDC.O) and Nike Inc (NKE.N).The deal is expected to add 35 cents to profit, excluding items, in the first year after closing, Convergys said.The company reported per-share earnings of 86 cents for the year ended December 31, 2012. The combined company is expected to exceed $3 billion in revenue, said Convergys, whose top customers include AT&T Inc (T.N) Comcast Corp (CMCSA.O) and…
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Cognizant opens new delivery centre in Costa Rica

Cognizant opens new delivery centre in Costa Rica

Locations, Outsourcing News/ PR
BANGALORE: IT services major Cognizant today said it has expanded its delivery and operations footprint in Americas with the opening of a delivery centre in San Jose, Costa Rica. The centre, Cognizant's fifth in Latin America and 15th in the Americas, was inaugurated by Laura Chinchilla-Miranda, the President of Costa Rica, the company said.The centre, it said, will enable Cognizant's global customers leverage the operational, technical and linguistic capabilities available in the region, while delivering deep local insights and time zone advantages to the company's growing roster of customers in North and South America. It will further strengthen Cognizant's ability to help customers address the dual mandate of driving operational efficiencies to fund innovation and business transformation, the company said in a release. "Our new center in Costa Rica marks…
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BPO firm Hinduja Global Services sets $1 billion revenue target

BPO firm Hinduja Global Services sets $1 billion revenue target

Other News/ PR, Outsourcing News/ PR
MUMBAI: Business process outsourcing company Hinduja Global Services expects to reach $1 billion (Rs 6,200 crore) in revenue in the next three years, as its core BPO business expands, helped by the US healthcare overhaul and expansion into new verticals such as Indian e-commerce and elearning. Part of the Hinduja Group, the company was first called Ashok Leyland Information Technology before it was merged with Hinduja Finance Corporation to form HGS."We are growing at above 20%. If things go well, in three years we could cross $1 billion. We'll be about $420 million this year. We would have to double, which we've done," CEO Partha De Sarkar told ET.The company doubled its top line from Rs 1,000 crore at the end of 2011 to about Rs 2,000 crore at the…
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Firstsource bags deals worth Rs 550 cr

Firstsource bags deals worth Rs 550 cr

Deals & Contracts, Outsourcing News/ PR
RP-Sanjiv Goenka Group controlled BPO firm Firstsource Solutions Ltd has bagged new long-term orders worth $87 million (approximately Rs 550 crore). According to Sanjiv Goenka, Group Chairman, "hits" (new orders) have gone up despite a slowdown across key markets. "We have struck deals worth of $87 million (during the first half)," he told Business Line. The company had failed to secure any new deals last year. Goenka is also the Chairman of Firstsource, which primarily operates in the BFSI (banking, financial services and insurance), healthcare and telecom and media segments. Of the over Rs 2,800-crore consolidated income, the Mumbai-headquartered company reported last fiscal, 46.2 per cent was from its North American operations and 34.2 per cent from the UK. India and the rest of the world contributed around 19.6 per…
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IT outsourcing spending may go up in 2014

IT outsourcing spending may go up in 2014

Other News/ PR, Outsourcing News/ PR
MUMBAI: Early indications are that 2014 will see an acceleration in spending on information technology outsourcing, which should be visible in the deal wins and commentary as Infosys kicks off the fiscal third-quarter earnings season on Friday. Most industry executives are gearing up for a pickup in discretionary projects as well, in the quarters to come, which are good-to-have but not vital to day-to-day operations. "The demand environment will be solid, and discretionary spending particularly in the area of digital transformation," said Ganesh Natarajan, CEO of Punebased Zensar Technologies."I expect investments in cloud, mobility, analytics and big data to substantially accelerate in 2014 and beyond," he said. Spending on discretionary projects is a good indicator of demand."We are bullish on the IT services sector, demand remains good in the US…
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US outsourcing firm opens office in Dubai

US outsourcing firm opens office in Dubai

Locations, Outsourcing News/ PR
US-based outsourcing firm Altour Management Technology has expanded and opened a new office in Dubai, a press statement said. Altour Tech is growing and the new office is an addition to the main outsourcing center located in Addis Ababa, Ethiopia. Altour Tech's Dubai office is a 24/7 operational outsource center. Altour Tech's President Manny Amare said there is no better time to open a new office in Dubai than now. "There are many opportunities that exist in today's market, especially in the Middle East," said Amare. "The outsourcing community is strong in Dubai and gives companies the kind of exposure needed to compete." Altour Tech provides dedicated resources and expertise in data processing, data entry, virtual admin support, web development and graphic design. Altour Tech helps its clients automate their…
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Data protection norms in EU may hurt Indian IT sector: Nasscom

Data protection norms in EU may hurt Indian IT sector: Nasscom

Locations, Outsourcing News/ PR
NEW DELHI: Even as outsourcing demand from Europe revives after the debt crisis, data protection regulations in the region governing trans-border data flows could hurt the $108 billion Indian IT-ITeS industry, sectoral body Nasscom today said. "Challenges that I see are the US Immigration Bill and the data security in Europe. These are areas that we are working on...I had gone (there) in September and had conversations with EU." "...security in Europe has the potential of going into directions which will not be conducive for (those) countries as well as our (IT) industry. They will get hurt and we will also get hurt," Nasscom President R Chandrasekhar told reporters on the sidelines of the 3rd annual Action for India forum. He added that engagement is a continuous process and Nasscom…
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HCL to set up 100-acre IT city in Lucknow

HCL to set up 100-acre IT city in Lucknow

Locations, Outsourcing News/ PR
Technology group HCL  has said it would set up a 100-acre IT city in Lucknow, a move that will help create job opportunities for about 25,000 people in Uttar Pradesh. The Uttar Pradesh government has awarded the project to Vamasundari Investments, the investment arm of HCL, the group said in a statement.No financial details were available.About 60 acres of the proposed IT city will be allotted to IT and ITeS, including a hi-tech skill development centre with a capacity to train more than 5000 people, it added. The remaining 40 acres is intended for support infrastructure and initiates of social impact, it said. "IT City shall play a crucial role in the overall economic development and boost up industrial growth of the state. Apart from this, it will directly create…
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iGate bags $80 million contract from Orange Communications

iGate bags $80 million contract from Orange Communications

Deals & Contracts, Outsourcing News/ PR
BANGALORE: iGate has secured a $80 million outsourcing contract from Orange Communications to transform the telecom provider's IT infrastructure and rationalize its vendor landscape in Switzerland.Orange mobile network covers 99% of the population in Switzerland. Under the terms of the agreement, iGate will transform and manage all enterprise systems, including ERP, business intelligence, infrastructure and data network & telephony services.iGate will also provide Infrastructure as a service for Orange Switzerland and specific partners - as well as a multilingual service desk to monitor and report all vendor performance metrics. The data centre is operated through Equinix in Zurich where iGate also has contracts with other Swiss companies from the finance and insurance sectors. Derek Kemp, EVP and head of Europe and Australia in iGate said, "We are excited to begin…
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Virtusa expands European operations with TradeTech buyout

Virtusa expands European operations with TradeTech buyout

Locations, Outsourcing News/ PR
US-based IT consulting, technology implementation and application outsourcing services provider, Virtusa Corporation, has expanded its footprint in Europe with the acquisition of Swedish outsourcing and consulting firm TradeTech Consulting Scandinavia AB. The Nasdaq-listed company, which has its global delivery centres at Hyderabad and Chennai in India, has acquired all the outstanding shares of TradeTech for approximately $20 million cash, and up to $4 million in earn-out consideration upon TradeTech’s achievement of certain revenue and profit milestones for the 2014 calendar."The complementary expertise that TradeTech delivers will help increase our total addressable market and provide our combined client base with expanded service offerings. In addition, this acquisition is an important step in establishing Virtusa in Nordic (Denmark, Finland, Iceland, Norway and Sweden) countries and providing a broad set of consulting and…
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