Infosys Technologies Ltd on Wednesday announced that it had bagged a seven-year, $250-million business process outsourcing (BPO) deal in the finance & accounting space from Royal Philips Electronics of the Netherlands. As part of the agreement, Infosys will also acquire three BPO centres belonging to Philips located in India, Poland and Thailand at a cost of $28 million, adding around 1,400 employees.
?The acquisition of the three captive centres of Philips BPO will be an all-cash deal and will be funded through internal accruals,? Infosys chief operating officer SD Shibulal told FE. The acquisition of the centres is expected to be complete by October. Infosys BPO?which operates in India, the Czech Republic, China and the Philippines (through a partner)?employs around 11,200 people.
The contract is among the largest BPO engagements from India and will expand Infosys?s global network, particularly strengthening its European operations. ?We are excited to partner with Philips to take their F&A and procurement functions to the next level of transformation,? said chief executive officer S Gopalakrishnan.
For financial year 2006-07, Infosys BPO had revenues of $148 million, while for the first quarter ended June 30 it had revenues of Rs 200 crore, with a net profit of Rs 36 crore. Ahead of the announcement on Wednesday, Infosys shares were up 0.70% or Rs 13.75 on the NSE to close at Rs 1,988.85.