Source: www.business-standard.com

As the Indian economy grows by leaps and bounds, a fair share of US and Europe based firms are being attracted to sub-continental shores, harbouring bright visions of high yield growth that translates into mega profits for them. One such, Fair Isaac, a US-based firm specialising in business analytics software products for the banking, financial, insurance and retail sectors, has drawn up big-time plans for tapping domestic firms for growth. Apart from business analytics software products, Fair Isaac also specialises in predictive modelling, decision analysis, intelligence management and decision management systems.

Currently, the $825-million worth Fair Isaac has one Indian client - ICICI Bank, while also servicing a few international banks operating in India.

Confirming Fair Isaac’s Indian foray, CEO Mark Greene stated: “We see a lot of opportunity for growth here. With Indian banks planning to adopt Basel-2 norms (standards for minimum capital requirements for banking operations - capital adequacy, supervisory review and market discipline), there is scope for our products. We are also targeting banks aiming at globalising their operations.”

With a 300-member development centre in already in Bangalore focusing on business analytics software, Fair Isaacs intends to open a sales and marketing office in Mumbai. According to Greene, his firm is already in talks with leading banks and will soon engage insurance and retail firms in India, as well.

In a bid to make Bangalore a centre for its Asian operations, including China, Fair Isaac hopes to expand, upping its headcount by 50-100 more professionals, shortly.

Source: www.business-standard.com

Led by Blackstone, the world’s largest private equity fund, a consortium in a management buyout, has purchased the entire shareholding of Housing Development Finance Corporation (HDFC) and Barclays Bank in Mumbai-based BPO – Intelenet Global Services. Although, no confirmation is available regarding the deal amount, sources claim the pegged at $200-million (Rs. 820-crore) BPO deal, will be the largest of its kind in the country.

Together with Intelenet’s management team, SKR BPO Services, a Blackstone special purpose vehicle will acquire the shares, to be jointly owned by Intelenet and Blackstone. With the same management team in charge of handling operations, it will be a seamless change of ownership, with business as usual for all stakeholders. Employing 17,000-people in 18-office across India and overseas, Intelenet boasts a roster of 60-Indian and international clients.

Established in 2004, the Barclays and HDFC 50:50 joint venture has gross assets worth $107-million (around Rs. 410-crore). With the completion of the transaction, Intelenet will continue to provide services to Barclays, in relation to certain processes currently off-shored to India, as well as, assist Barclays in establishing a wholly owned BPO operation in India, for serving any incremental off-shoring Barclays requirements.

In addition, the consortium also proposes to make an open offer for Sparsh BPO, in which Intelenet has a 51% stake, and has made an offer of Rs. 200/- for every Sparsh BPO share, for a total offer of approximately Rs. 64.59-crore.

According to analysts this could be a first step towards a private equity player led consolidation of the domestic BPO industry. A Mumbai-based official from Deloitte, the PE advisory services firm confirms, saying: “All the top private equity players are active in India. But, we have not seen much major transaction in the country, where a PE player buyout the entire company, turn it around and exit it with a huge amount of money. Blackstone’s move can be considered as a step in that direction.”

Started in 1994, Intelenet began life as a 50:50 joint venture, between Tata Consultancy Services (TCS) and HDFC. Deciding to focus on its own BPO business, in 2004 TCS sold off its stake to HDFC for Rs. 161-crore in total. Subsequently, HDFC too sold a 50% stake to the UK-based Barclays, who at the time was looking to outsource back-office processes to India.