Philips signs multi-year deal with Infosys

Indian outsourcer Infosys Technologies has bagged a business process outsourcing (BPO) contract with Royal Philips Electronics, part of an unusual deal in which Infosys will also acquire Philips’ service delivery centers in India, Thailand and Poland.

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Indian outsourcer Infosys Technologies has bagged a business process outsourcing (BPO) contract with Royal Philips Electronics, part of an unusual deal in which Infosys will also acquire Philips’ service delivery centers in India, Thailand and Poland.

Under the multi-year contract, the value of which was not disclosed, Infosys BPO, a subsidiary of Infosys Technologies, will provide the Dutch electronics giant Philips with finance and accounting services, and purchase-order processing.

Infosys will add about 1,400 Philips’ staff to its own BPO team. They will bring a range of abilities including language skills, technical expertise and domain knowledge, Infosys said on Wednesday.

The deal gives Infosys a larger presence in Europe, a market where it has been trying to increase its presence with new offices and a delivery centre in Brno, in the Czech Republic.

For the quarter ended 30 June, Europe accounted for $248m, or 27%, of Infosys’ revenue, with most of it coming from the UK. The US accounted for 63% of revenue.

In a similar deal, another Indian outsourcer, Tata Consultancy Services (TCS), won an order from Pearl Group, an insurance and pensions firm in the UK, to handle its business processes. As part of that deal, Pearl Group staff were moved to a subsidiary set up by TCS in the UK.

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