Tata Consultancy Services (TCS) has acquired a 96.3 percent stake of Citigroup Global Services Ltd (CGSL), the back-office operations of Citigroup in India, for $505 million. With the transaction, which is expected to be completed by the end of this year, TCS will become the second largest BPO services provider across the globe. The transaction is subject to customary approvals.

HOV Services which provides business process and knowledge process outsourcing solutions, has launched a new delivery center in Xi’an, located in Shaanxi Province, China. The facility is integrated into HOVS’ scalable and secure global delivery platform and meets the most stringent standards and government regulations.  

A recent study published by Tholons and Global Services announced the top 50 emerging outsourcing cities of the world in 2008. China was leading with six cities on the list, followed by India and the Philippines with four cities each. The list reveals India losing its position in the outsourcing industry to competitors including China and the Philippines. As per 2007 rankings, India was leading with six cities in the top 50 list. Cebu has been recognized as the leading emerging destination for outsourcing in 2008 as compared to Chennai in 2007.

IBM has expanded operations in Argentina by establishing three global delivery centers (GDCs) in the country. The company will invest $60 million over the next 10 years for the development of the GDCs. The investment is in addition to the $200-million initiative of the company pertaining to establishing delivery centers in Spanish-speaking South American countries: Argentina, Bolivia, Chile, Colombia, Paraguay, Peru, Ecuador, Uruguay, and Venezuela.

Genpact has enjoyed a very good second quarter this year, with revenues for Q2 2008 up 26 percent compared with the same period last year.
Other key financial results included:
 
•         Net income was $24.8 million, up 250 percent from $7.1 million in the second quarter of 2007; net income margin for the second quarter of 2008 was 9.8 percent, up from 3.5 percent in the second quarter of 2007.
 

Letter from our CEO

Highlights of the FAO Summit 2008 include success stories, provider panels, and advice on standards and practices.

FAO Today fêtes the outstanding practitioners, advisors, and providers of the past year.

Put the right commercial model in place to support a long-lasting relationship.

NelsonHall's recently released study, "Global BPO Market Forecast: 2008–2012," predicts sunny days ahead for the global BPO market. The survey said global BPO is expected to generate $450 billion in revenues by 2012. As supplier capability continues to mature, the growth of the BPO market is being augmented by economic slowdown in the U.S., which puts more pressure on outsourcers across all sectors to evaluate their efficiency in mature markets, according to NelsonHall.