IBM, quoting low margins and profitability, has decided to sell off its customer service BPO business to Synnex for $505 million. The acquisition will be fully integrated under the Concentrix brand, a wholly owned subsidiary of SYNNEX.
As part of the transaction, SYNNEX will enter into a multi-year agreement with IBM, and Concentrix will become an IBM strategic business partner for global customer care business process outsourcing services. Synnex will pay approximately $430 million in cash and $75 million in stock for the IBM business.
IBM has sold off the business unit to focus on innovative and high value areas that allow for larger profit margins. “This agreement is good for IBM as it furthers our focus on growing our software and cloud-based CRM [customer relationship management] solutions as part of [our] continuing shift to high value and innovative spaces,” said Lori Steele, general manager of IBM Global Process Services”.
IBM still retains a significant portfolio in other BPO areas including HR, logistics and procurement.
“We are very excited to bring together these two great teams, each recognised by their clients as leaders in providing outstanding and innovative solutions,” said Kevin Murai, President & CEO, SYNNEX Corporation. “This acquisition will significantly extend our portfolio of offerings and delivery capabilities that will make Concentrix a global Top 10 player in this growing market.”
The acquisition should provide Concentrix and its customers significant economies of scale, leveraging a range of technology platforms, people and services to support high-value customer interactions.
Through the acquisition of IBM’s customer care business process outsourcing services business, Concentrix will provide customer care services for clients in more than 12 industries. Concentrix will significantly expand its global footprint across six continents to approximately 45,000 staff and 50 plus delivery centres.
While the transaction is being completed, the companies will continue to operate independently and IBM customer care business process outsourcing services will continue to be sold and delivered as usual. IBM hasn’t commented yet on how that will affect operations here in Australia and New Zealand and whether this will see Concentrix setup offices locally.
|
© The Sauce
BPO NEWS THAT MATTERS
Read more interesting articles at,
|
No comments:
Post a Comment