UBS may divest BPO and KPO units in India and Poland
According to an article in Economic Times, UBS, a Swiss banking major is in talks to divest its BPO and KPO operations in India.UBS is in talks with major IT players in India like Infosys and Wipro.
UBS has two captives, one in Hyderabad, India and another in Poland. These centers are together rumored to be valued at around $200 million. About a couple of months back, the analytics unit at Hyderabad was part of a management led buyout. Now the top management and UBS each have a 50% stake in the analytics unit. This unit, know as Verity Knowledge Solutions is not part of this deal.
Sometime back, Basab Pradhan had commented as to why outsourcing captives do not work. Basab’s articles can be found here and here. (One was written in May 2007 and another in May 2008)
Basab argues that these captives did not make financial sense in the first place and if Indian companies go ahead and buy these, it does not appear to be a sensible thing for them to do as well.
