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HCL BPO searches for U.S. based Co
By agencies
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Monday, 03 October 2005, 19:30 IST
CHENNAI: HCL BPO, the business process outsourcing arm of HCL Technologies, is actively looking at acquiring a company before the end of this year according to Ranjit Narasimhan, its Chief Operating Officer.
HCL is looking at acquiring a company with revenues of not less than $100 million before the end of the year. The company should be based in the U.S. and service U.S. clients. The pricing model should be output-based. Traditionally, Indian IT and BPO services companies have entered into software contracts with clients based on input-based pricing. In other words, the client is fully conscious of the full resources, in terms of man months, that a vendor uses to service the former. The pricing of the service is accordingly decided.
In output-based pricing, the pricing is fixed, say, in terms of insurance claims processed or the cost of maintaining a broadband client. The client does not want or need to know the resources that a vendor uses to deliver service. The end-objective is stated and the pricing is accordingly determined. The vendor, on the other hand, uses offshore options and technology tools to make his operations more efficient with time, and hence increases the profit while doing the same work for the customer.
HCL Technologies' financial year ends in June and as of June 2005, it had a cash equivalent of $50 million and treasury investments of about $400 million. The BPO business crossed $100 million in revenues this fiscal.