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Wipro seals Spectramind deal

Software company Wipro Ltd said on Thursday it had completed a $93 million deal to acquire fast-growing back-office service firm Spectramind.

Bangalore-based Wipro, which aims to become a one-stop shop combining software writing with back-office services offered over high-speed telecommunication links, last month announced it would buy 66 per cent of Spectramind for $83 million, lifting its total stake to 90 per cent.

With more than 2,700 employees, Spectramind offers back-office services including payroll and bill processing to corporate clients, most of whom are boosting outsourcing to cut costs.

Analysts say the Delhi-based firm's customers include American Express and Dell Computer Corp.

The buying of the business process outsourcing firm is the largest of its kind in the fast-growing Indian information technology enabled services sector.

"With this strategic acquisition, Wipro Technologies, the global IT services division of Wipro, along with Spectramind will offer integrated solutions for all BPO needs of clients worldwide," New York-listed Wipro said in a statement.

Wipro, with a market capitalisation of around $6.0 billion, first paid $10 million for a 24 per cent stake in Spectramind, which expects sales to grow four times to $45 million in the year to March 2003.

Many Indian software firms, hit by the global technology slowdown, are leveraging their existing sales engine and global clients to expand into high growth back-office services.

Billionaire Azim Premji, who owns more than 80 per cent of Wipro, funded the purchase from the company's cash chest, which stood at $354 million on June 30.

Wipro's rival Infosys Technologies, India's No 2 software exporter, set up its back-office firm, Progeon, last April with $5.0 million of it own and $20 million from Citigroup.

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