The Hindu : Business : Infosys bags $250 m order

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Thursday, Jul 26, 2007
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Business

Infosys bags $250 m order

Acquires three Philips BPO centres

BANGALORE: Infosys Technologies on Wednesday won a $250-million contract from Royal Philips Electronics of the Netherlands and said it would acquire three BPO centres from the Dutch company for $28 million.

As part of the outsourcing contract agreement, Philips will enter into a seven-year contract with Infosys BPO to provide finance and accounting (F&O) services and processing of purchasing orders.

“The deal size is about $250 million over seven years,” Infosys Chief Operating Officer S. D. Shibulal told PTI. “We are acquiring three shared service centres located in India, Poland and Thailand from Philips. We are making a one-time payment of $28 million and acquiring the three centres on as-is-where-is basis,” he said.

The acquisition expands Infosys’ global network, particularly strengthening its European operations, with 1,400 skilled BPO staff joining the company.

The multi-year contract is among the largest F&A deals in business process outsourcing from India.

S&P ups outlook

Rating agency Standard & Poor’s on Wednesday revised its outlook on Infosys Technologies to positive from stable, with the IT company posting strong revenue growth last fiscal and continuing to diversify its customer base.

Standard and Poor’s affirmed on the country’s second largest software exporter ‘BBB’ rating, which is an investment grade, and indicates that financials of the company are satisfactory at the moment. — PTI

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