Infosys announces $250 mn BPO deal with Philips

By Staff
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Google Oneindia News

Bangalore, July 25: In one of the largest ever Indian outsourcing deals, IT bellwether Infosys Technologies Ltd today announced inking of a 250 million US Dollar contract with the Royal Philips Electronics of the Netherlands.

In a release here, Infosys said as part of the agreement, Philips would enter into a seven-year contract with the Infosys BPO for providing Finance and Accounting (F&A) services and processing of purchasing orders.

The contract also envisaged Infosys acquiring three-shared service centres in India, Poland and Thailand from Philips.

Talking to UNI, Infosys Chief Financial Officer V Balakrishnan said the deal would also put Infosys BPO among the global top five financial and accounting services BPOs besides enabling it gain foothold in new markets such as Poland, where it had no presence.

The contract is amongst the largest Finance and Accounting BPO engagements from India and would expand Infosys global network, particularly strengthening its European operations.

Commenting on the deal, Infosys CEO S Gopalakrishnan said ''global corporations require transformation partners like Infosys to enhance their competitiveness in the flat world. We are excited to partner with Philips to take their F&A and procurement functions to the next level of transformation''. Philips Electronics Chief Strategy Officer and Group Controller Gerard Ruizendaal said ''Infosys clearly demonstrated a willingness to invest in people with a strong HR process, better solution quality, ability to leverage end-to-end process improvements and a robust risk mitigation and transition plan.'' ''Their leadership capabilities were clearly evident in all interactions and proposal submissions, with a strong focus on the customer''.

Mr Balakrishnan said the negotiations had been on for the last three to four months.

The deal was announced amidst renewed rumours that Infosys would be acquiring the French BPO Capgemini. Asked about it, Mr Balakrishnan firmly denied such move stating that nothing as such was on the cards.

The Philips deal extends Infosys' global network with new centres in India, Poland and Thailand. Infosys would gain approximately 1,400 Philips professionals who would add to the Infosys BPO team a wide range of valuable skills and abilities. This include diverse language capabilities, technical expertise and domain knowledge.

The deal with Philips reinforced Infosys' leadership position in transformation-based BPO services. Infosys BPO has seen significant growth of over 70 per cent in revenues and an increase in client base of over one-third in 2006-07.

''During our interactions with the Philips employees, we found them to be very bright with a high level of energy and strong skill-sets. We look forward to welcoming them to the Infosys family'' said Amitabh Chaudhry , CEO, Infosys BPO.


UNI

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