Daksh and IBM: Business Process Outsourcing in India – Part 1. The Formative Years

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Daksh and IBM: Business Process Outsourcing in India – Part 1. The Formative Years

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Publication Date:
January 08, 2007

Source:
University of Hong Kong

An undisputed success story, Daksh eServices was one of the leading Business Process Outsourcing (BPO) service providers in India. Launched by a group of friends in 2000, it started by providing web-based customer support services for global clients. By 2004, having added voice capability to complete its service offering, it had grown into a 6,000 strong company with reported revenues of over US$50 million. Given the market conditions, Daksh had all the right numbers to be a sell out IPO. At the same time, IBM had expressed a concerted interest to buy out the company. What had emerged as the relevant question was, whether or not the IPO was the best way to go ahead. Alternatively, was the sell out to IBM a better option? If so, what should be the asking price? While the top management at Daksh evaluated both options, industry analysts reflected as to why a BPO company like Daksh made sense for IBM in the first place.

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Daksh and IBM: Business Process Outsourcing in India – Part 1. The Formative Years

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