Vertex Announces the Acquisition of Domestic Major Shell Transource
Vertex announced today that it has completed the acquisition of Shell Transource Ltd, one of India’s largest integrated domestic BPO companies. The combined strength of the two entities will reach close to 7,000 employees by September 2011 and Vertex further plans to increase the headcount to 20,000 employees by September 2013. Vertex also envisages its business revenues in India to cross $100m by end of 2013.
The acquisition process started six months back, where earlier the two companies had entered into a joint venture, with Vertex picking up a majority stake in September, 2010. This partnership has progressed and has now culminated into an acquisition. With this Vertex has emerged as a significant CMO/BPO player in India, with the capability to deliver integrated services across voice, non-voice and fulfillment solutions to customers in over 400 locations in India and plans to increase its reach to over 500 locations in India.
In the last 6 months, Vertex India has had a significant growth with some big wins, which include three of the top five telecom majors in India. The offices in Gurgaon and Noida have been fully utilized and Vertex is also planning to acquire additional office space to cater to the requirements. Vertex is also expanding its service offerings from India to include specialized IT services and consulting to some of their select global clients and is in the process of hiring a team of over one hundred software engineers in India.
Paul Sweeny, CEO, Vertex Group, said, “The Indian outsourcing market has rebounded faster than its global counterparts, which makes India one of the world's most attractive and rapidly growing markets. The Indian domestic BPO market has a strong potential opportunity both in terms of financial and strategic investments. Our announcement today reiterates our commitment to investing in the Indian market and is part of our global strategy of broadening and deepening our CMO capabilities. This acquisition will help Vertex emerge as the largest CMO in India in terms of pan India reach and offering integrated services across voice, non-voice and fulfillment solutions.”
Keshav C Gaur, Managing Director & CEO, Vertex India, said, “Bringing the two companies together will allow us to transcend what we have already accomplished as individual businesses and streamline our operations in India. We believe that our unique business model will drive growth and innovation for the entire industry, enabling our customers with a full scope CMO providing the full breadth of customer care, related business process outsourcing services and applications support to create differentiated solutions. This will also give us the critical mass to bid for certain large businesses and also throw open doors for large e-governance projects. We have also invested in the new relationship and the process is on to scale up the Shell Transource infrastructure to match global standards.”
Through this acquisition, Vertex plans to strengthen its presence in India by integrating its world-class CMO capabilities underpinned by bespoke technology and applications with Shell Transource’s ability to provide transformational value to companies across the country. Strengthened by Vertex’s leading technology and quality edge, this move will help the new ‘Vertex’ embark on its already strong growth trajectory. This acquisition will supplement Vertex’s capabilities delivered via its four service lines comprising CMO; IT Applications and Services; Consulting and Transformation; and Decision Sciences. The focus will be on utilities, public sector, financial services, telecommunications and retail/distribution.
It is to be noted that Vertex Group had earlier announced in September 2010 that it had entered into a JV with Shell Transource and that the majority owned Vertex Group venture will cater to the dynamic market needs of clients, especially in rural India, tier II and tier III cities with multi-lingual capabilities and understanding of these markets.
