Convergys Corporation announced a definitive agreement under which Convergys will acquire New Zealand-based Datacom’s contact center operations in Kuala Lumpur, Malaysia, and Manila, Philippines.

Datacom and Convergys expect to close the transaction as soon as practicable. The acquisition will be accretive to Convergys’ 2013 earnings.

Datacom will add 15 Asian languages to Convergys’ language capabilities and approximately 1,000 employees, working in three Southeast Asia contact centers, to Convergys’s global operations. The integration of the two organizations is expected to take between six and nine months.

“The addition of Datacom’s contact center operations is in line with our acquisition strategy, allowing us to expand our language capabilities and global footprint. It enables us to forge new relationships with the prominent technology companies that Datacom now represents, and provides additional opportunities for growth,” said Andrea Ayers, Convergys President and CEO. “We remain disciplined in our pursuit of growth opportunities that add value for clients and shareholders.”

Jonathan Ladd, Datacom Group CEO said, “Datacom has built a world-class multi-site, multilingual Asia BPO business servicing a suite of long-term blue chip clients. We’re proud to sell this asset to Convergys, in full confidence that our contact center staff will be joining a strong organization that is solely focused on providing exceptional services to a world-class portfolio of customers and will support outstanding growth opportunities for our staff.”

Headquartered in Tampa, Florida, vWorker has over 2.5 million enterprise and professional users from around the world, who have been paid over US$139 million through the site from 1.3 million projects.

Founded by Ian Ippolito in 2001 originally as RentACoder.com, the marketplace was one of the earliest companies of its kind in the world. It rapidly developed a reputation for attracting quality programmers and grew at an astonishing pace. From 2007 to 2010 RentACoder.com was named by Inc. magazine as one of the 5000 fastest growing private companies in the USA. In 2010, Entrepreneur Magazine called RentACoder  “one of the hundred smartest, most innovative, hands-down brilliant companies on our radar”.

Originally focusing on programming and IT-based work, in 2010 the site expanded to include a wide selection of work categories including graphic design, writing and more. To reflect this expansion, the company changed its name to vWorker.

vWorker users will be migrated onto Freelancer.com.  It is largest marketplace for virtual workers  with over 6.6 million professionals! Current employers will see greater variety and competition among freelancers in the marketplace, while current freelancers will see a marked increase in the amount of work available on the site.

Fuji Film Holdings Corporation has announced that it signed a definitive agreement with Australia’s largest business service provider Salmat Limited (ASX: SLM) to acquire Salmat’s Business Process Outsourcing (BPO) division.

The acquisition, worth AU$375 million, covers all the shares of Salmat Document Management Solutions Pty. Limited, Salmat’s wholly-owned subsidiary, SDMS’s 11 subsidiaries as well as Salmat Asia Limited, SDMS’s Asian business unit.

Their consolidated sales and underlying EBITA were AU$316 million and AU$49.5 million respectively for June 2012 term. The BPO business includes printing/delivering important postal matters including electricity/gas/water/communications invoices and bank account statements to end users, digitalizing and automatic processing of corporate clients’ invoicing work to reduce costs, delivering information by email, as well as compiling a database of scanned paper documents and their management/storage.

Leveraging their advanced IT data management capacity, they have been successful in streamlining operations and achieving higher efficiency and reducing costs by automating work processes while linking digital printing devices and work flow systems.

Positioning the document solutions business as one of its key growth areas, Fujifilm Holdings is strongly promoting the business shift from the hardware-centric business offering multifunction devices and printers to the solutions and services business.

The acquisition of SDMS provides the company with the biggest capability to offer BPO services in Australia. Integrating SDMS’s know-how in BPO with Fujifilm Group’s powerful marketing capacity — sales performance, brand strength and customer base —, the company will expand its solutions and services in China and other Asian markets. Further, by introducing its print devices including the next-generation inkjet printer Jet Press series in work processes, it aims for business growth and expansion beyond what the current business trend affords.

Working with Salmat to form a partnership, and also together with SDMS’s knowledge and experiences in handling massive customer data and building a consistent workflow from printing to post-print processing, Fujifilm Group will accelerate the expansion of solutions and services business leveraging its document outsourcing business.

Salmat chief executive Grant Harrod attempted to explain in the most plain-English way he could yesterday about the junk mail company’s change of strategic direction.”You would have noted in the past we referred to ourselves as a multi-channel communication company. We’re now shifting our focus to become an omni-channel communication company,” he said, as Salmat announced the sale of its business process outsourcing arm.

Helping lay people understand the change of direction and ”not wanting to get caught up in semantics”, Harrod went on to explain the switch from multi to omni-channel.”Rather than a multiple, disparate, unco-ordinated range of channels, we’re very much wanting to provide integrated and seamless service relationships to our clients.”

Harrod said the switch was necessary, given customers were ”talking about the need to become more omni-focused”.

Harrod also said: ”We will continue to use our direct sales team to target tier one, but likewise evolve our SME or LVN portal as a self-service function to drive SMEs.”

• The Australian BPO Association hosted a BPAP trade delegation (Business Process Outsouce Assoc. of The Philippines) at a cocktail reception last week in Sydney – see who was there http://www.youtube.com/watch?v=2VqWuTXgebQ
• Representing the Australian BPO Association (ABPOA), Director Peter Springett attended a State Reception in honour of Her Excellency Ms Yingluck Shinawatra. The leaders of Australia and Thailand met in Canberra to mark the 60th anniversary of diplomatic relations between the two countries. Thai Prime Minister Yingluck Shinawatra, who was accompanied by a strong Thai Trade Delegation, said her visit to Australia was aimed at boosting bilateral trade and investment between both nations.Since the 2005 signing of a free-trade agreement, two-way trade has doubled to $15 billion, making Thailand Australia’s sixth-largest trading partner.
• Talent2 International Limited (ASX: TWO) announced today its major shareholders Andrew Banks and Geoff Morgan have proposed to take the business private in a move to allow the company more flexibility to meet its strategic global growth plans. Talent2 announced to the ASX  that it has entered into an agreement with Morgan & Banks Investments (MBI), a company owned by Banks and Morgan, and Allegis Group, Inc, (Allegis) to acquire all outstanding Talent2 shares, for a cash consideration of $0.78 per share, by way of a Scheme of Arrangement (Scheme)

In the rapidly changing scenario within the Indian BPO industry, the market is abuzz with merger and acquisition talks. Mahindra Satyam acquired Vcustomer, then got merged with Tech Mahindra . Now the speculations are high that Infosys might buy a major stake in Firstsource .

DNA Indiareports– “Firstsource has a huge debt burden, made worse by foreign currency convertible bonds (FCCBs) — bonds with a fixed maturity issued by Indian companies to foreign investors — due to mature later this year. Around 60% of the FCCBs maturing were raised at a rupee-dollar rate less than 42 and since rupee has significantly depreciated in 2011, the firm is expected to bear heavy losses.”

First source has been trying to sell itself for last 1 year however was unable to get a suitable buy till Infosys begun to show some interest.

Experts suggest “Firstsource derives 34% of its revenue from healthcare. If Infosys goes for the acquisition, it will add more teeth to this vertical, which is expected to give contract wins in the coming quarters, thanks to the US healthcare reforms.

In another major development as reported by Times News Network, Back office majors Sutherland Global Services and Genpact are in the final race to acquire Apollo Health Street, the healthcare business process outsourcing (BPO) arm of Apollo Hospitals, in a deal valued at over Rs 1,100 crore ($220 million).

Sutherland, which has put in a higher bid, is the front-runner in the race.

Apollo Health Street takes up the outsourced financial and technology work for the big healthcare service providers, helping them to run profitable and efficient operations.

The acquisition will help Sutherland to scale up in the healthcare BPO segement.

Source: BPO Voice

GlobalConnect changes name to AGC Networks. GlobalConnect was bought last August by Aegis Australia and over the past 12 months it has been integrated into the company.

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The Philippines is the most cost-effective outsourcing destination in Asia, according to real estate advisory firm CB Richard Ellis. In a recent study by CBRE comparing 15 central business districts in Asia, the Philippines was ranked the second cheapest with lease rates at $19.1 price per square foot/annum, next to Jakarta’s $16.3. This despite an increase in office lease rates in Metro Manila and a decline in vacancy rates this year. The Philippines also ranked second in terms of office rental yields in Asia, at 10% in the third quarter of 2011, following India’s 11%.

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Unisys Corporation announced that its Australian and New Zealand subsidiaries have signed agreements with McDonald’s to provide end-user IT support services to McDonald’s restaurants across Australia, New Zealand and the South Pacific. The five-year contracts have an estimated combined value of approximately AU$30 million (US$30.5 million) and represent new business for Unisys.Under the terms of the contracts, Unisys will provide service desk, on-site and remote support services to McDonald’s chain of more than 1,000 company-owned and franchised restaurants across Australia, New Zealand and the South Pacific region, including New Caledonia, Fiji, Tahiti, American Samoa and Samoa.

T2 snags top influencer

Mary Sue Rogers routinely appears on lists of the Top Consultants in the World. Ms. Rogers has worked in HR for over 25 years, in a variety of roles focused on transforming the role of HR in organisations through consulting and outsourcing. She has experience with a variety of industries including financial services, industrial and consumer packaged goods. T2 announced the appointment of Mary Sue Rogers as the new Global Managing Director of HR Managed Services. Mary Sue’s remit will be to lead Talent2’s Payroll, HR Advisory and Learning businesses

International Business Leaders Meet for Outsourcing Summit in China

Last week, a large number of international political and business leaders converged on Ma’anshan, China, for the fourth annual Global Outsourcing Summit. The conference focused on how outsourcing, including call center development, can help develop industries throughout the world, with a particular focus on China. Brazil, the Philippines and the United Arab Emirates have also all been developing vibrant BPO markets that are helping to create jobs and economic growth. Worldwide the business process outsourcing market expanded by 25 percent during the first quarter of this year, according to a report from the Everest Group.

Oracle to buy RightNow Technologies

IT giant Oracle will buy cloud-based CRM specialist RightNow Technologies to boost its customer service offering. RightNow customers in the region include Telecom NZ and Virgin Mobile, while the US-based company has around 1000 employees worldwide, including a branch in Australia. “Oracle is moving aggressively to offer customers a full range of cloud solutions including sales force automation, human resources, talent management, social networking, databases and Java as part of the Oracle Public Cloud,” said Oracle’s Thomas Kurian. “RightNow’s leading customer service cloud is a very important addition.”

By Bibhu Ranjan Mishra

UK-based Serco Group, which earlier bought Mumbai-based back office services provider Intelenet Global Services, has further expanded its global BPO capabilities by acquiring Excelior, the contact centre business of Australian firm Skilled Group.

According to an announcement made by Skilled Group to Australian Stock Exchange, the company has entered into an unconditional agreement to sell Excelior to Serco for a total consideration of A$13.2 million. This includes an earn-out payment of up to A$5 million payable over the next two years upon achieving certain revenue targets. The agreement was signed with Serco Pty, the Australian subsidiary of Serco.

Skilled Group also said the sale of Excelior was in line with the company’s strategy to focus on its core business after divesting the non-core assets. Skilled Group, which provides labour hires and workforce services in Australia and New Zealand, has over 160 offices with revenues of around A$1.9 billion.

According to industry sources, the process to acquire Excelior was initiated by Intelenet Global Services much before Serco acquired it. However, in the new scheme of things, Intelenet Global is expected to drive the post the merger integration of Excelior with Serco.

Serco, a global services company, had acquired Intelenet in June this year for £385 million (about Rs. 2,770 crore). Before acquiring Intelenet, Serco had about 8,000 people located in India as a part of its BPO practice.

With the addition of about 32,000 people from Intelenet, Serco BPO has now a headcount of about 40,000.

Excelior was established in 1999. The company employs about 2,000 people in Australia across four centres including Box Hill in Melbourne, Bendigo in Victoria, Burnie in Tasmania and Robina in Queensland.

Source: Indian Business Standard

US BPO services APAC Customer Services today said it would sell itself to JPMorgan Chase’s private investment arm One Equity Partners for about $470 million in cash.

Under the terms of the agreement, which has been approved by the board of APAC, One Equity Partners will pay APAC stockholders $8.55 per share in cash, representing a premium of 57 per cent over APAC’s closing share price on 6 July 2011.

One Equity Partners expects the acquisition to be funded through committed equity and credit facilities and is not subject to any financing contingencies.

Theodore Schwartz, chairman of APAC and his affiliated entities, representing approximately 39 per cent of the company’s outstanding shares, have entered into a voting agreement to vote in favour of the transaction.

Founded in 1973 by entrepreneur college student Schwartz, Illinois-based APAC is a BPO provider to companies in healthcare, business services, communications, media and publishing, travel and entertainment, financial services and technology industries.

One Equity is the majority owner of NCO Group, a leading global provider of business process outsourcing services. One Equity said that it will seek to combine APAC with NCO Group to build market leadership in business process outsourcing and customer care solutions.

Source: Domain-B

ANZ Regional document processing specialist Speedscan has announced new outbound capabilities with the acquisition of the e-Billing business of Connxion Limited.

Connxion’s e-Billing business will be added to Speedscan’s document processing services for inbound communications that include mailroom services, scanning, OCR, data entry, workflow and document hosting.
Speedscan claims the Connxion e-Billing integration will result in it becoming the largest independent and privately owned Business Process Outsource provider, focused on document intensive processes, across Australia and New Zealand.

Speedscan first began in 1997, and today incorporates businesses in Sydney, Melbourne, Manila, Auckland, Wellington and Christchurch.

Speedscan has now acquired the intellectual property, systems and infrastructure that support all of Connxion’s e-Billing clients across the Asia Pacific. The company will continue to work with the clients of Connxion’s e-Billing business and has engaged all key staff who developed and supported the technology. The acquisition has grown the Speedscan team to 140 employees.

Mark Josman, Chief Executive Officer of Speedscan, said, “With the growth in outsourcing, Speedscan is well positioned to become the preferred supplier of outsourced services for both inbound and outbound document intensive processes. With Connxion’s outbound communications platform, e-Billing and payments services we now have an extensive capability for corporate and government sectors.

“We are delighted that we can now extend the benefits further to our clients across Australia and New Zealand. This unique capability will set Speedscan apart from other competitive players in the market and enable us to continually grow.”

Speedscan is backed by leading Private Equity investors.

Source: IDM

By Team VCC

The deal will also include the purchase of Cambridge’s technology infrastructure for continued service delivery.

Business process outsourcing firm Cambridge Solutions Ltd has sold its loss-making wholly owned arm Cambridge Integrated Services Group, Inc. (CISGI), which houses the US workers’ compensation and third party administration operations, to US-based Sedgwick Claims Management Services for $22.7 million (around Rs 101.9 crore).
British outsourcing firm Xchanging Plc. owns around 75 per cent stake in Cambridge Solutions.

Due to unsatisfactory returns and significant future commitments of the CISGI business, Cambridge Solutions’ board of directors approved the sale of CISGI operations (US workers’ compensation and third party administration) to Sedgwick.
“Selling the CISGI operations to market leader Sedgwick will provide our customers and employees with a good home for the future,” said Ken Lever, executive director, vice-chairman and acting CEO of Cambridge Solutions.

The deal involves payment of $22.7 million in cash, of which $3 million will be held in escrow for up to 18 months, the company said.

A property & casualty claims and risk management services provider, CISGI serves self-insured employers, insurance carriers and public entities in the USA, Europe and Australia. The sale will cover workers’ compensation, managed care, consumer claims, professional liability claims and structured settlements operations of CISGI, as well as most of its contracts.

The transaction will also include the purchase of Cambridge’s technology infrastructure which will enable continued service delivery to Cambridge clients. Besides, CISGI and Sedgwick will enter into a transition services agreement to facilitate a smooth handover of operations. The transaction will be reflected as a discontinued operation in the Q2 2011.

Sedgwick is the North American provider of innovative claims and productivity management solutions. The company and its affiliates deliver cost-effective claims administration, medical management, risk consulting and related services. The current acquisition will enable the company to add an array of services in the areas of transportation liability, consumer financial services, structured settlements and Medicare compliance.

Cambridge Solutions, with approximately 4,600 employees on board, is an international BPO and IT services provider, and is listed on various the Indian stock exchanges. The company has reported a total income of $49.53 million in FY10, with a net loss $.32 million. Almost two-thirds of Cambridge’s revenue comes from high-end BPO operations spread across the USA, India and Europe. Additionally, it has a strong presence in the lucrative insurance processing domain.

A similar deal took place only a few weeks ago when ICICI Group-backed IT & ITES firm 3i Infotech sold its US-based Global Billing & Payments unit, comprising of Regulus Group and J&B Software, to an affiliate of private equity firm Cerberus Capital Management, L.P. for $137 million.

Source: VCCircle

By Paolo Montecillo

Genpact Ltd., a firm listed on the New York Stock Exchange, has completed its $550-million acquisition of Boston-based Headstrong Corp. in a bid to expand its footprint in the world’s booming outsourcing sector.

The merger between the two firms, both of which employ thousands of employees in the Philippines, is expected to result in operational efficiencies and cost savings.

“We are thrilled to welcome the highly talented employees from Headstrong to the Genpact team. The critical domain and technology expertise we have gained today … creates a uniquely powerful value proposition for our clients from whom we’ve already received terrific feedback,” said Pramod Bhasin, president and CEO of Genpact.

“Joint teams are focused on several potential cross-selling opportunities and we have dedicated senior leaders from Genpact and Headstrong working on the integration,” Bhasin added. “We are confident of delivering enhanced value to our clients, shareholders and employees.”

Genpact is currently one of the biggest business process outsourcing (BPO) companies based in India.

The company, which posted $1.26 billion in revenue last year, manages over 3,000 processes for more than 400 clients worldwide. The company has over 43,000 employees around the world.
Headstrong maintains operations in seven countries, including offshore centers in India and Manila, with more than 3,700 employees globally.

Source: Inquirer