Infosys BPO to manage 3i’s India centre
UK-based private equity firm 3i has partnered with the BPO arm of Infosys to set up an investment research centre in Bangalore, reports Venkatesh Ganesh.india Updated: Mar 06, 2008 21:40 IST
UK-based private equity firm 3i has partnered with the BPO arm of Infosys to set up an investment research centre in Bangalore. The centre, to be run by Infosys BPO, will be a back-office for investment research on Fortune-1000 companies. Twenty research analysts have already become part of the new initiative.
Chris Rowlands, Managing Partner, 3i Asia said, “We believe that the expertise and additional resource Infosys brings will further drive 3i's competitive advantage in India and globally."
IT analysts said that rising labour costs in captive units are forcing private equity firms to outsource research work. Investment banking firms JP Morgan, Lehman Brothers, among others, have done a similar outsourcing deal in India. Lehman has taken over Mumbai-based research firm Brics Securities.
“On an average, costs have gone up by 15 per cent for BPOs,” Raman Roy, head of Quatrro BPO. Captive BPOs — which are run by the companies themselves — would have to bear the brunt of other establishment costs.
“Our research shows that captives spend more on salaries because they hire more senior staff, spend lavishly on buildings and furnishings, and end up spending on headhunting fees to compensate for attrition,” says Sudin Apte, India research head of Forrester. “Costs like these get built up for captives over a period of time and the advantage is negated,” says Roy.