Infy BPO arm might go in for more acquisitions, says CEO

Infosys’ BPO arm which just completed 10 years of operation is doing wonders with a YoY rise in Q4 net income of 71 per cent to $24.33 million and is also looking forward to some more acquisitions.

Infosys BPO had made two major acquisitions, Portland Group and McCamish Systems, recently and Infosys BPO CEO Swami Swaminathan believes that this has also further pushed their net towards a high. “At present the acquisitions are churning 20 per cent of our profits and we might go for more synergistic acquisitions in the future, taking a cue from these two successful ones,” he added. Speaking to Deccan Herald, Swaminathan said that this phenomenal growth can be attributed to its initiative to move up the value chain and transform their business from just being governed by cost arbitrage to also helping the clients grow.

“Clients with us have not only cut costs but have also got a platform through which they can enter any emerging markets as the back end processes are being taken care of by Infosys,” he said. The BPO arm of Infosys has seen a growth of 4 per cent in operating margins throughout the year and 16 per cent in revenue.

 With an addition of 22 new clients and a total of 126, the company has been operating with people from 51 different nationalities.

“When a client feels the pressure for profitability, we chip in and not only give them that but a lot more,” he added. Talking on acquisitions, Infosys CFO V Balakrishnan said that the cash and cash-equivalent  they have as of March 31, 2012 can be used for more strategic acquisitions, moving forward.