Firstsource Rumored To Hunt Banking Captives

Indian BPO vendor Firstsource is reportedly negotiating to purchase two of financial services giant Prudential''s captive call centers as part of a massive outsourcing contract. If the talks go through, sources say the resulting deal could be worth between $1bn and $1.5bn. The contract would likely resemble the recent $250m Infosys tie-up with Philips, in which the outsourcing company acquires certain assets from the client in addition to a multiyear services agreement, the report states. Some media reports have mentioned that TCS may also be in the running to acquire the Prudential captives.

One of the centers is located in Mumbai and houses 1,800 employees, providing about one-third of Prudential''s call center work, the article said. The other back-office operation is in the UK.

Firstsource has been at the center of several acquisition rumors recently. Last week it was said to be closing in on a $300m deal to buy MedAssist, a US BPO group serving health care providers. It is also one of the three remaining bidders for Citigroup''s captive BPO unit. Fellow Indian BPO notable Genpact and private equity firm 3I are also looking to acquire an 80% stake of the captive, which could come at a price of $600m to $700m, a separate article in the Economic Times states.

Source : www.indian-commodity.com