HP On The Prowl For BPO Buy-Outs

New Delhi, April 26 | Updated: Apr 27 2004, 05:30am hrs
Hewlett-Packard (HP), an over $74-billion infotech company, also seems to be in queue for an acquisition in the BPO (business process outsourcing) space in India. Following the Daksh (a Gurgaon-based BPO firm) acquisition by IBM (International Business Mach-ines), the industry is talking of a number of IT MNCs on the prowl for BPO buy-outs in India.

When contacted, HP spokesperson Hans Lidfross responded over an e-mail, We have a small BPO business and we are always analysing different ways (organic and inorganic route) to enlarge and improve the business (as we do for all other segments)... As a policy, HP does not comment on specific discussions on acquisition target.

HP already has a base in the BPO segment in IndiaChennai and Bangalore partly through its acquisition of DigitalSoft and partly due to its own venture in BPO.

According to National Association of Software and Service Companies (Nasscom), it has around 3,000 people in the country handling technology support and troubleshooting work for global customers.

A partner with a leading venture capital firm said, HP is also looking at acquisitions like IBM. None of the MNCs wants to miss the train.

Commenting on the HPs strategy, NeoIT (a consulting firm on outsourcing) chairman and MD Avinash Vashistha said, HP has integrated BPO operations within the company that includes technical support, data server management and network management.

It might make sense for HP to acquire a company with not less than 2000 people in voice processes and transaction processes, he added.