The Outsourcing Week in Review (Mergers & Acquisitions): May 31, 2023

For the M&A lowdown this week, we announce the latest move from the ‘world’s most acquisitive firm!’ Plus, we bring you exciting partnerships, significant investments, and bold expansions. It’s like like a high-stakes chess game, but with companies instead of kings! 👑

We begin with an update from outsourcing giant Accenture. Yes, we did cover them last week.  They just can’t stop… This time, it’s acquired Einr AS, an Oslo-based firm specializing in high-volume logistics solutions using SAP technologies. The financial details of the deal remain confidential. Accenture has been described as the “world’s most acquisitive firm,” having bought 282 firms, of which, 161 happened in the past five years. The value of its recent purchases has not been disclosed. According to Mergr, Accenture’s most significant acquisition was in 2013, when it purchased Procurian for $375 million. The company’s highest reported sale was in 2015 when it sold Navitaire to Amadeus IT Group SA for $830 million.

Custom software development providers Moove IT and December Labs have announced their merger to become Qubika in a move poised to reshape the digital transformation landscape. Moove IT is a software consulting firm that designs, develops, and deploys custom software solutions for organizations. December Labs is used for developing mobile apps, websites, and emerging technologies in terms of UX/UI. Both companies are based in Uruguay. With 26 years of combined experience, Moove IT and December Labs will immediately transition into a single enterprise. The newly formed entity will be privately held and headquartered in Texas, with service delivery from locations in the United States and Latin America.

Setpoint, an asset-backed lending tech innovator, has announced its strategic acquisition of Resolute Diligence Solutions, a renowned due diligence service provider for Single Family Rental (SFR) and Residential Transition Loans (RTL). Following its founding in 2021, Setpoint raised $43 million in its Series A funding round last December, FinTech Futures reported. Setpoint offers various services such as third-party verification, calculation and paying agent, and valuations manager that include automated and streamlined business process outsourcing (BPO).

Software company 10Pearls has acquired Oiga Technologies, a Colombia-based firm specializing in artificial intelligence (AI), machine learning (ML), big data, and blockchain. The acquisition allows 10Pearls to capitalize on Oiga’s emerging technology capacity. Headquartered in Washington, D.C., 10Pearls has delivery centers in North America, Latin America, Europe, and South Asia. The deal emphasizes the continuing importance of the LatAm region as a hotbed for digital innovation and a valuable source of technological talent. Several business ventures in LatAm had been recently announced. Marlabs acquired Monitora to boost its presence and expand its regional growth. Meanwhile, ModSquad had just launched its operations in Costa Rica.

Catamaran Ventures, the private investment firm managing the assets of Infosys Founder Narayana Murthy, intends to double its US$1 billion in investments under management over the next five years. Murthy’s pioneering strategy of outsourcing technology services helped transform Infosys into one of India’s leading tech firms. His daughter, Akshata Murty, holds a directorial position at the British branch of the clan’s investment firm, which operates independently. Notably, Murty is also the spouse of United Kingdom Prime Minister Rishi Sunak. Infosys, a global consulting and IT services company, has operated since 1981 and is listed on the New York Stock Exchange. With over 343,000 employees, the company services clients from over 50 countries. Infosys is headquartered in India and has offices in the Americas, Asia Pacific, Europe, the Middle East, and Africa. The company has impressive LTM FY23 revenues of US$18.21 billion and a market capitalization of around US$72.35 billion.

Cloud-based security solutions providers Eagle Eye Networks and Brivo have announced one of the most substantial investments in cloud physical security. Japanese giant SECOM, a top security integration company, has injected $192 million into the firms, divided into $100M for Eagle Eye Networks and $92M for Brivo. SECOM is a $15 billion enterprise in Japan and one of the biggest security integration firms in the world. It has a wide range of business offerings that include security services, BPO, and information and communications technology (ICT) services.

Cloud technology company Oracle Corporation has opened its Oracle Cloud Jovanovac Region in Kragujevac, Serbia, marking its first cloud region in Southeast Europe. According to Nasdaq, Oracle’s growth in the cloud computing market has been steadily increasing, but its market share lags behind its competitors. Citing an AAG report, Nasdaq explained that revenues from 2021 to 2022 for cloud infrastructure services reached $191 billion. Amazon.com’s Amazon Web Services (“AWS”) holds the largest market share with 32%, with Microsoft Azure closely behind at 23%, Alphabet’s Google Cloud at 10%, and Oracle Cloud Infrastructure with only 3.8%. Nasdaq added that businesses have been diversifying their cloud spending across multiple providers to mitigate risks and avoid dependence on a single provider for all their cloud needs.

Tata Consultancy Services (TCS), an Indian multinational IT service and consulting company, has extended its partnership with Google Cloud and introduced TCS Generative AI, a business solution to foster rapid growth and transformation for clients. TCS is a giant IT services, business solutions, and outsourcing organization with a global presence in India, North America, Europe, Asia Pacific, Australia, and New Zealand. It generated consolidated revenues of US$25.7 billion in the fiscal year ended March 31, 2022.

Coforge, a global IT services company, has announced it has surpassed US$1 billion in revenue. The Noida-based firm outperformed its full-year revenue growth expectations in fiscal year 2023 (FY23) and improved profitability in the last quarter. In FY23, the revenue increased by 24.6% to US$1.002 billion. The fourth quarter of FY23 was especially strong, with revenue at US$264.4 million, a rise of 5.6%. To celebrate the milestone, the company is gifting each of its 21,000+ employees an Apple iPad.

iQor, a global business process outsourcing (BPO) company, has appointed Fleurette Navarro as its Chief People Officer (CPO), effective June 1, 2023. As CPO, she will oversee talent acquisition & retention, workplace culture, employee development, and strategic globalization. Navarro will report directly to iQor President and CEO Gary Praznik. Navarro has 23 years of experience in the BPO industry and has been head of operations for several global companies, such as HSBC, CapitalOne, and Tata Consultancy. 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, U.S.-based BPO firm Clark Staff has acquired an iconic building in Tbilisi’s Freedom Square. The move reiterates its commitment to the Georgian market. Clark Staff’s Tbilisi facility will cater to various services, including software development, IT support, and accounting/finance. In addition, it will house multilingual agents, proficient in German, Spanish, French, English, and Italian. Clark Staff is a full-service BPO company headquartered in St. Petersburg, Florida, with offices in the Philippines, India, and Georgia.

From thrilling developments to strategic maneuvers, it’s clear that the BPO industry is always on the move!

The outsourcing M&A news this week

26 May 202

• TCS expands Google Cloud partnership, launches generative AI offering – read article…
• Infosys Founder to double private firm’s investments – read article…
• Menzies introduces ESG consultancy service – read article…​

25 May 2023

• iQor appoints Fleurette Navarro as Chief People Officer – read article…
• Coforge surpasses $1 billion revenue mark – read article…
• Clark Staff expands in Georgia, acquires iconic building – read article…

24 May 2023

• Accenture completes Einr AS acquisition – read article…
• Setpoint acquires Resolute Diligence Solutions – read article…
• Aspirion strengthens U.S. foothold with FIRM RCM deal – read article…

23 May 2023

• Eagle Eye Networks, Brivo raise $192M in investment  – read article…
• Flō Networks buys American Tower’s Mexican fiber business – read article…
• 10Pearls acquires Oiga Technologies – read article…

22 May 2023

• Oracle unveils first cloud region in Southeast Europe – read article…
• Moove IT, December Labs merge to create Qubika – read article…
• Accenture Ventures invests in SpiderOak – read article…