Philips to Sell its BPO?

There have been unconfirmed reports circulating that Electronics Major, Philips is planning to sell its BPO operations to Infosys in India. Infosys is the largest software leader in India. The deal is set at US $200 Million. Philips currently employs 1500 employees in its BPO units which operate in Chennai, Bangkok and Warsaw. The acquisition could be a positive deal for both companies according to critics. Philips BPO unit experiences higher attrition and other issues which add to much higher operating costs that ultimately impact its balance sheet. Philips BPO unit in Chennai supports F&A processes currently for its parent company. It mostly deploys SAP according to informed sources. Infosys BPO unit has a strong hold on F&A process outsourcing and so the acquisition could prove to be a positive experience. This is yet another great example of a major consolidation drive experienced by Indian BPO sector coming within a breath of reports that Citi Group plans to sell its BPO.