SISL moves into BPO, to spin off new company

Balaka Baruah Aggarwal

NEW DELHI: Siemens Information Systems Ltd. (SISL) has crystallized its plans

to move into the business process outsourcing (BPO) space by spinning off a

separate company. Second, it has also zeroed on its acquisition plans of a

Chennai-based company at an estimated cost of Rs 15 crore, informed company

sources.






SISL already has a captive center in Bangalore. This center is being expanded
and spun off into a separate company within a month's time to cater to third

party needs. SISL, with an impressive customer base in the overseas market will

have a ready reference base for its BPO operations, which is critical in the

business. It has already lined up three international customers.






The center, which is already operational, has a current capacity of 300 seats.
This will be ramped up to 500 seats within three months with the total strength

moving up to 1000 seats by the year-end. The company has an estimated revenue

projection of $15,000 per seat annually.






SISL's acquisition will be in line with its strategy to expand its hold in the
Indian banking and financial services market. To that extent, an acquisition was

on the cards since its announcement during the annual results. The deal, which

is expected to be completed in a week's time, will see an expansion in the

product offering from SISL in the banking and financial services market.

Besides, it will also help the company in acquiring its base of customers.