More Outsourcing Acquisitions in the Philippines
IPVG Corp.’s offer to acquire a majority stake in PeopleSupport could signal an acquisition spree by local players that want to get into or expand their BPO services globally, according to an industry analyst.
IPVG announced Monday an unsolicited offer to acquire PeopleSupport at $15 per share or a total valuation of $355 million. PeopleSupport confirmed it received IPVG’s offer on the same day.
“IPVG obviously recognizes the need to bolster its service offerings to become a broader IT-enabled player and create a stronger presence in the global market. These acquisitions of call centers, along with others, are evidence of a commitment by IPVG to expand its capabilities,” said Lauro Vives, founder and CEO of XMG International.
US-based PeopleSupport employs around 8,000 workers in facilities located in Metro Manila, Cebu City and Baguio City.
IPVG already runs its own BPO unit in IP-Contact Center Outsourcing (IP-CCO), which resulted from its acquisition earlier this year of call center operator Global Stride. IP-CCO currently has some 300 workers.
“Before 2009, there will be a critical vacuum of available call center, IT and engineering talent in the Philippines to meet the demands of companies in the Philippines,” Vives said responding to questions from INQUIRER.net via email.
Vives stressed: “Therefore, acquisition is a viable strategy that can create rapid entry and sustainable competitive advantage.”
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