Significant Deals

EDS inked a $4.5 billion deal with Bank of America to revamp and manage their voice and data networks. Besides running Bank of America's networks, EDS will provide support for the bank's help desk operations. As a result of the 10-year outsourcing deal, about 1,000   Bank of America employees across the United States will transition to EDS.  

A number of software services companies, including Bangalore based majors are pitching for a sizeable deal from the $9.7 billion American construction and mining equipment major, Ingersoll Rand. The work will be for Ingersoll Rand’s trading company that is being set up in Dublin . The company already works with the Tata Consulting Group and several others ranging from small to large sized companies. 

Mergers, Acquisitions and Strategic Investments

NIIT has acquired CognitiveArts, a Custom Knowledge Solutions company. With this acquisition NIIT is expected to address the US corporate knowledge Solutions market. CognitiveArts designs and delivers simulation based Knowledge Solutions for many Fortune 500 companies. The acquisition adds to NIIT Technologies an experienced consulting team of around 40 professionals. NIIT Technologies is also expected to benefit from the strong brand presence of CognitiveArts in the US and its access to Fortune 500 customers.

Another move taken by NIIT in expanding operations in the domain of IT-assisted education, has been the acquisition of e-Gurucool, a provider of e-Learning in schools segment.  NIIT is expected to enhance its product range through its network of education centers while offering online services from its e-Learning portal, NetVarsity.

Computer Associates International has acquired Netreon Inc, a privately held developer of storage area network (SAN) software. It was an all-cash transaction and however no financial details were disclosed. With this acquisition CA now offers solutions for managing the entire storage life cycle enabling customers to optimize returns on corporate storage technology investments.

Apar Infotech, the Pittsburg based IT services company with development centers in India , has acquired Mumbai-based 3Genesis, a telecom software services company funded by Venture Fund Connect Capital. 3Genesis provides IT and business system solutions and services, including systems integration, package implementation, custom software application development and maintenance, research and development services to Communication Service Providers globally. The acquisition cost Apar Infotech $1 million. The acquisition is expected to strengthen Apar’s presence in these areas and broaden its telecom offering by complementing the company’s CRM/EAI strengths with 3G’s core competence in end-end OSS/BSS solutions, intelligent network based solutions, messaging applications, protocols and next generation communication systems.  

Mascot Systems, a subsidiary of US based iGate Corporation, is set to acquire two iGate group companies, eJiva and Aqua Regia Technologies for a cash of $9.46 million and $0.5 million respectively. The acquisition is aimed at enhancing the operational and financial size of Mascot in addition to expanding its range of services and clientele.  

Veritas Software Corporation, a provider of storage management software has acquired Precise Software Solutions in a deal valued at $537 Million. The acquisition is expected to expand Veritas’s addressable market into the application performance segment. Veritas has also acquired Jareva Technologies from Bangalore-based Jumpstartup Venture Fund for $62 Million. The acquisition is expected to make Veritas offer both heterogeneous software solutions and heterogeneous automated server software solutions for the enterprise platforms.  

Hyderabad based software firm, Recursion Software Ltd, has acquired a 51 percent stake in K2 Systems Inc, based in Texas, US. According to the company press releases Recursion Software would also be focusing on the BPO segment and has set a target of $7 million in revenues in 2003 - 04. K2 Systems Inc. has a product for the Construction Testing Labs with a market potential of $10 Million each year. Recursion Software is expected to support the product from its Indian operations while K2 Systems will be taking care of its marketing activities in the US and other specific markets in Europe .

Singapore Computer Systems (SCS), a Singapore based public listed company has made a strategic investment of $9.2 Million for a 30 percent stake in Bangalore based Kshema Technologies. The partnership with SCS is expected to increase Kshema Technologies market reach and an opportunity to share diverse ideas and perspectives. Singapore Computer Systems is an ICT service provider in the Asia-Pacific region with competencies in IT and Business Consultancy, Systems Integration, Outsourcing, Networking, E-Business and R&D/Product Development. The company with a wide geographical reach employs around 2000 people operating from Singapore and eight other countries.


The BPO wave continues  

The business process outsourcing industry has attracted yet another corporate giant Larsen and Toubro (L&T). The engineering and cement conglomerate is in the process of drawing up a blue print for a foray into the booming sector soon. L&T’s foray into the segment could be either through its InfoTech arm, L&T Infotech, or a separate company.  The proposed venture will focus on software and construction industries.  

Optimus Outsourcing, a wholly owned subsidiary of Polaris Software Labs has purchased the assets of Bangalore based iBackoffice, a Customer Interaction services company. The size of the deal has not been disclosed. Polaris plans to leverage on the existing business of iBackoffice to gain advantage in terms of time and effort in establishing Optimus.  

ABN AMRO has finalized a deal with EDS to outsource the back office activities of its wholesale banking arm. The five year contract , which involves transferring 2,000 jobs to EDS, is one of the largest ever service agreements in the banking sector and one of the biggest outsourcing deals of the year 2002. Under the arrangement, EDS will run a portion of ABN AMRO’s technology operations at its wholesale division.  

Pune-based software services company Zensar Technologies has acquired 50% stake in Lalit Ahuja’s Suntech Data Systems in an attempt to get a foothold in the BPO sector. Suntech is building a 250-seat call center in Bangalore . Zensar had allocated $4 million for acquisition in the BPO space, however no financial details of this acquisition were disclosed.