The Outsourcing Week in Review (Mergers & Acquisitions): June 28, 2023

Welcome to Inside Outsourcing: The Outsourcing Week in Review

THE WEEK IN REVIEW

There’s a lot of M&A action – as always – in the outsourcing industry, and we’re here to give you the lowdown. Strap in; we’re about to take off! 💥

Support Shepherd, the head-hunter-cum-outsourcer, has lassoed the attention and capital of industry insiders Nick Huber and Shaan Puri. Recently, news broke that Support Shepherd just won backing from these Silicon Valley founders. Founded in 2020 by Marshall Haas, Support Shepherd is known for helping Western firms recruit overseas talent.

In case you don’t know… Huber is the mastermind behind Sweaty Startup, which became a valuable resource for those seeking to break free from the traditional startup mold. Its platform focuses on helping aspiring entrepreneurs build low-risk, high-reward businesses. An outspoken advocate for outsourcing, Huber has been wielding this strategy in the Philippines and lauds Support Shepherd for its pivotal role in overcoming the labor crunch in the United States – a little island solution for a big mainland problem, if you will. Puri, a jack-of-all-trades with a track record of six companies (two sold, one still running, and three… let’s charitably call them ‘valuable lessons’), adds his seasoned entrepreneurial grit to Support Shepherd. As host of the popular tech-bro podcast, My First Million, and recent founder of Milk Road, Puri quickly built and sold the fastest-growing newsletter in the crypto space.

Why the buzz around Support Shepherd, you ask? Both Huber and Puri have pretty significant followers on Twitter, YouTube and podcasts. The decision to get behind Support Shepherd was mainly because they could try to funnel their large business audience into the new startup. Will it work?  Let’s see. At least, Huber and Puri’s partnership with Support Shepherd could signal a broader shift towards mass-market awareness and adoption of offshoring in the entrepreneurial ecosystem.

Now, on to the OGs of business process outsourcing. Industry giant Accenture, known for being ahead of the curve, is again pushing boundaries with an investment in Praxis Labs, a SaaS virtual reality (VR) company. This New York-based firm specializes in immersive learning to boost soft skills, equity, and inclusion in the workplace. This forward-thinking move isn’t just about tech; it’s also a stand against wealth disparity! The investment is part of Accenture’s Black Founders Development Program and its broader Project Spotlight initiative. Accenture’s investment demonstrates its ongoing commitment to addressing the disparity in wealth that exists for Black founders. Despite the rising number of Black entrepreneurs and historic VC levels in the ecosystem, Black founders still receive less than 1% of funds invested in the U.S. Accenture raked in a whopping $62 billion in revenue in 2022, making it the top firm in the Time Doctor OA500, an index of the world’s top 500 outsourcing companies and a vital tool in assisting the BPO decision-making community.

Another powerhouse, Tata Consultancy Services (TCS), and U.S.-based insurance provider Transamerica, have hit the pause button on their $2 billion contract. Reuters attributed the decision primarily to a challenging macro environment. Despite terminating the sizable contract, industry insiders believe the impact on TCS’s financial health will be limited. With annual revenues hitting $25.7 billion in 2022, TCS ranked #51 in the Time Doctor OA500.

Foundever (formerly Sitel) joins hands with KMS Lighthouse, a software company in the enterprise knowledge management space. The goal? To provide top-tier knowledge management for large enterprises. The partnership sees KMS Lighthouse’s superior knowledge management technology merging with Foundever’s expertise in customer experience. This technology has demonstrated its potential to provide operational efficiencies, reducing onboarding by 50% and minimizing error rates and time to knowledge by 25%. Earlier this year, Sitel Group unveiled it has transitioned to Foundever. Since purchasing Sykes in 2021, Sitel has established itself as one of the world’s top three CX service providers.

Next, we’ve got Alorica rolling out its digital foundry, Alorica IQ, aiming to boost digital customer interactions. A significant investment, Alorica IQ seeks to increase customer lifetime value and productivity while reducing wait times. Alorica operates in 17 countries worldwide and has generated approximately $2.36 billion in revenue, according to the latest data from Statista.

Wipro is making its mark in South Africa by opening a new office in Cape Town. This move underscores Wipro’s commitment to its clients and regional expansion. And let’s not forget — Cape Town’s BPO sector contributed a cool R14 billion (US$752.5 million) to the city’s economy in 2021, and Wipro is ready to add to the pot.

iQor is tuning up its tech. They’re teaming up with AmplifAI, an artificial intelligence (AI)-driven performance enablement platform. iQor aims to employ interaction analytics and AI to boost call center performance and quality assurance. Headquartered in Florida, iQor has 40,000 employees spread across ten countries. According to Crunchbase, iQor’s estimated revenue sits between $1 billion and $10 billion. The company ranked #38 in the Time Doctor OA500. iQor is subscribed to the Outsource Accelerator (OA) Source Partner Program, a powerful tool that helps BPO firms with marketing, sales, and business intelligence

Another Source Partner, The Remote Group (TRG), is stirring their sales by appointing Brian Bradford as their North America division’s Vice President of Sales. With a solid professional background in financial services, Bradford is determined to boost TRG’s expansion in the U.S.

“Being multifaceted has equipped him with a unique perspective and a versatile skill set that will allow him to be successful in his role as VP of Sales,” the company shared.

Finally, Connext, also a Source Partner, is crossing borders and heading to Latin America. The move comes as the company plans to extend its expertise to nearshore outsourcing solutions. Latin America’s appeal as a prime destination for nearshore outsourcing stems from its proximity to North America and the region’s highly skilled labor force. The company has doubled its growth since 2019 and currently supports middle-market companies throughout the U.S. and Europe.

That’s a wrap, folks! We hope you enjoyed this edition. See you next week!

The outsourcing M&A news this week​

23 June 2023

• Wipro opens new office in South Africa – read article…
• Omada One launches new center in PH, expands global reach – read article…
• FilWeb Asia partners with SAGE Leadership Consultancy – read article…​

22 June 2023

• Accenture invests in SaaS VR company Praxis Labs – read article…
• iQor teams up with AmplifAI to automate call center functions – read article…
• iPipeline appoints Leonid Davelman to lead customer success initiative – read article…

21 June 2023

• The Remote Group names new VP of Sales – read article…
• Alorica rolls out digital foundry to boost digital CX – read article…
• Sagility announces new delivery center in Jamaica – read article…

20 June 2023

• Connext begins expansion to Latin America  – read article…
• Bandwidth, Miratech partner to drive contact center transformations – read article…
• JustCall unveils AI-driven platform JustCall iQ – read article…

19 June 2023

• TCS, Transamerica end $2 billion contract  – read article…
• Foundever, KMS Lighthouse partner for global contact centers – read article…
• Verint unveils new self-service product on engagement data – read article…