The deal includes a security deposit of 10.10 crore and features an unusually steep 15 per cent escalation every three months, which stands out in Bengaluru's commercial leasing market.
The deal, which values Firstsource at Rs 800 crore (Rs 8 billion), would give Goenka a foothold in the information technology sector.
As per the outsourcing partnership agreement, Firstsource would manage Barclays' operations center in Colorado Springs and would provide customer care and collection support to its US cardholders, Firstsource Solutions said in a filing to the Bombay Stock Exchange.
US-based buyout fund Carlyle, Providence Equity Partners, Warburg Pincus and Blackstone are understood to be exploring a buyout of Temasek's holding in Mumbai-based pure-play business process outsourcing firm Firstsource. The news triggered the company's share price to rise 6.76 per cent on the Bombay Stock Exchange (BSE) to close at Rs 43.45 on Tuesday. Warburg Pincus has a stake in WNS, a BPO company, while Blackstone has a majority stake in Intelenet.
Firstsource will provide a suite of BPO services covering both voice and back-office in areas such as customer accounting, VAS provisioning, fraud and credit monitoring, the company said on Wednesday. The company will also set up centres in Vashi and Chennai for Airtel and expects to have over 1,000 employees in the first year focussed on providing services in English and eight other regional languages to Airtel's customers.
Mumbai-based business process outsourcing firm Firstsource plans to sell US-based MedAssist, a health care business it acquired in 2007. Firstsource had paid $330 million for the acquisition.
The BPO's board will meet on Friday to finalise deal.
Firstsource Solutions (formerly ICICI OneSource), a business process outsourcing company, on Thursday acquired BPM - a Delaware-based healthcare claims' outsourcing company.
The stock tanked 18.67 per cent to Rs 270 on the BSE.
Mumbai-based Firstsource Solutions, a pure-play business process outsourcing provider, has acquired US-based MedAssist Holding for $330 million (Rs 1,353 crore).
Firstsource raised $275 million (around Rs 1,265 crore) through foreign currency convertible bonds in 2007 to fund the acquisition of MedAssist.
ICICI bank, one of the investors, has been trying to reduce its stake for long, as it has to bring it below 5 per cent on directives of the US Federal Reserve.
FirstSource is also rumoured to be in the race to acquire Citi's BPO unit after the first round of bidding.
ICICI Bank is understood to have deferred the sale of its holding in Firstsource Solutions, a Mumbai-based pure-play business process outsourcing entity. The bank along with its subsidiaries owns close to 27 per cent stake in the BPO firm.
ICICI OneSource (I-OneSource), which filed papers for its initial public offering of 95.6 million (9.56 croroe) shares on Thursday, has been rechristened FirstSource.
Firstsource was perhaps the first BPO that set shop in the US city of Buffalo in 2004 with 287 employees.
Firstsource, a BPO provider, offers openings in UK, US and domestic processes.
Accenture's Q1 FY22 results have sent a wave of cheer among analysts, as the company raised its revenue guidance and said it expects double-digit growth in outsourcing, up from single digit to low double-digit growth expected earlier. Accenture's financial year ends on August 31. The company raised its revenue outlook for FY22 to 19-22 per cent in local currency, up from 12-15 per cent earlier.
The company already employs 1,000 at its base in Londonderry and 400 in Belfast. In May 2008, it had created 800 jobs, which was widely hailed in the region.
Firstsource, which operates from two bases in Northern Ireland, is among a growing number of Indian companies like HCL, polaris, PixTransmission and Tech Mahindra who have chosen to set up offices in the region.
British Prime Minister Boris Johnson, who landed in Ahmedabad on Thursday morning on a two-day India visit, was accorded a grand welcome at the airport in Ahmedabad. Soon after, he visited Sabarmati Ashram in the company of Gujarat Chief Minister Bhupesh Patel.
Jhunjhunwala holds a stake in more than 30 listed firms.
Limited opportunities in his 100-year power business might have prompted Sanjiv Goenka to enter a new business area, but there could be other growth plans up his sleeve.
Ruling comes at a time when IT firms have signed multi-million dollar deals with telecom firms.
With an expanding domestic market, increasing cost and higher attrition rate, outsourcing action is shifting to tier-III and IV cities.
Among the lot, Rallis India, Escorts, Jubilant Life Sciences, and Crisil added half of the total gains made in the ace stock-picker's portfolio.
Tutorvista teaches 20,000 students, 95 per cent of them from the United States. The rest are from 24 different countries. Ganesh plans to enter the United Kingdom, Canada and Australia next year.
Indian IT companies are equally jubilant. That's because the Bill, which proposes to create Electronic Health Records (EHRs) for all Americans by 2014, is expected to open up a $20 billion market opportunity for Indian IT services firms like Infosys, Wipro, TCS, Firstsource and MindTree.
Indian companies are also actively participating with the Egyptian government in training university graduates to acquire the proper set of skills needed to work in the BPO industry. Egypt has already added new curriculums across six of its universities to produce job-ready graduates.
At the end of June, 2016, TCS had a total headcount of 3.62 lakh.
The Nasscom-McKinsey Perspective 2020 report notes that healthcare will emerge as a very big opportunity for outsourcing services. Ananda Mukerji, managing director and chief executive officer of Firstsource, feels his company is in the right place to make its mark in the global BPO business.
Currently, the investor and his family's net worth in listed firms stands at Rs 8,517 crore, compared to Rs 8,388 crore as of March 31, 2020.
The sale of the BPO business, run by Citigroup Global Services (formerly e-Serve), is expected to fetch around Rs 3,200 crore for the group. At this price, it will be the largest deal in the domestic BPO space.
The effects of the sub-prime crisis and the resultant slowdown of the US market is evident on the margins of Indian information technology (IT) and IT-enabled Services (ITeS) firms. Business process outsourcing (BPO) firms such as Firstsource, Pune-based HOV Services, Zenta, Aegis BPO and others have been receiving inquiries from existing as well as new customers for ramping up their account receivables management (ARM) business.
Mutual funds were predominantly buyers in the banking, engineering, power, IT, and media space in February
Ajit Mishra, vice president, Research, Religare Broking, answers your queries.
Unlike last year when private equity participants exited through strategic deals with third party investors, this year PEs are opting to exit via initial public offerings route.
'Is it advisable to have more number of scrips in small quantities or a few scrips in big quantities?'
Jhunjhunwala increases stake in DHFL, luggage maker VIP Industries and pharma major Lupin but is cautious on auto holding. At the end of the March quarter, Jhunjhunwala held positions in 29 firms.
Johnson will be only the second British leader since Indian independence to attend the annual Republic Day parade in New Delhi as Guest of Honour, after former prime minister John Major in 1993.
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