TCS acquires Chilean BPO firm for $23 mn

CIOL Bureau
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BANGALORE: Tata Consultancy Services has bought 100% equity in the Chile-based company Comicrom for $23 million.


Comicrom is the market leader in the banking and pensions business process outsourcing business in Chile.

Comicrom, currently employing about 1257 employees, provides BPO services to banks, insurance companies, pension funds, government bodies and other large corporatations in Chile. The company posted revenues of $35.5 million during FY 2005 with an operating margin of 14%. It has 57% market share of the check processing business in Chile and counts more that 70% of the banks operating in Chiles as its customers.

The acquisition is also expected to enhance TCS' strategy of pioneering the next generation of virtualized, platform-led BPO opportunities.


“This acquisition is a further step in realizing our strategy of acquiring leadership in platform-based BPO opportunities for the banking and insurance domain. It also expands our capability in terms of becoming a full services player,” said S. Ramadorai, CEO and MD of TCS. “Comicrom brings significant capability in transactions based banking processes and market leadership in Chile,” he added.

N. Chandrasekaran, global head of sales and operations, said, “As a region-wide banking play, the acquisition will drive TCS' growing presence in the region's banking sector, as Comicrom's local expertise combined with TCS' banking domain expertise and assets like Quartz and FNS will enable us to offer the entire range of IT and BPO services to banks in Latin America.”

With this acquisition, TCS plans to strengthen its foray into the Latin American BPO market and boost its regional staff strength to over 2000. It also plans to increase its client base to over 100. In the IT services segment, it employs around 400 people in Brazil and 300 in Uruguay and plans to scale the Brazilian team to around 2000 to execute the ABN Amro deal.

The company is also eyeing to capture the BPO market of the southern part of the US with the Chilean team's language proficiency in both Spanish and English.