Pipal Research corporation, a subsidiary of Mumbai-based BPO company, Firstsource, formerly known as ICICI Onesource has bagged a knowledge process outsourcing (KPO) deal from the London Stock Exchange (LSE) Industry observers point out that this deal could trigger more such KPO deals for an industry that is reeling under the impact of a slowdown in the US economy.
As a part of this deal, Pipal would provide industry and company focussed research reports to Alternative Investment Market (AIM), which is a sub-exchange of the LSE with listings of 2200 companies. While the company has refused to give out the size of the deal and the duration of the contract with LSE, company officials expect this deal to start bringing in revenues at the end of the current quarter (ending in June).
This is the first time that a non-US financial entity has decided to outsource some of its core functions such as investment reports. Companies in Wall Street have been outsourcing work to their captive companies as well as some Indian companies like Infosys BPO, Quatrro BPO, Genpact and WNS. According to KPMG, financial services KPO industry will be Rs. 20,000 crore by 2010.
Commenting on the deal Sanjeev Arora, CEO, Pipal Research said, “This deal is a step towards our vision of becoming a leading global provider of valued added financial research, corporate intelligence and analytics services and could open the door for more such deals.”
Martin Graham, head of AIM and director of equity markets said, “Across AIM and the main market, the exchange supports a huge diversity of smaller companies that are competing to attract investor interest and equity research is a key tool.”