Infosys BPO scouting for buyouts

Infosys BPO today said it is scouting for acquisitions across the globe as it eyes to reach the USD 1 billion revenue target over the next few years.

"The target for USD one billion is still some time away but we are looking at both organic and inorganic routes to reach that number...We are looking at geographies like Europe, Latin America, Africa and Asia Pacific for potential targets," Infosys BPO Chief Executive Officer Swami Swaminathan told reporters here.

The company would look at targets which would help Infosys BPO strengthen its core competency in verticals like sourcing and procurement and legal process outsourcing, he added.

He, however, declined to comment on the potential size of the acquisition.

The company had acquired US-based insurance BPO McCamish Systems in an all-cash deal of USD 38 million in 2009.

Infosys BPO has operations in the Americas, Asia Pacific, Australia and Europe with over 18,900 employees. Its revenues stood at USD 426.79 million as of March 31, 2011.

Talking about growth, Swaminathan said, "Last two years, we have been growing at about 20%, but this year, we would be growing anywhere between 15-20%."

Asked if the economic uncertainty would adversely impact the company, he said, "It is times like these that companies look at outsourcing to help prepare them and make them ready to face the economic conditions."

Swaminathan added that a lot would depend on how the players help their clients transform rather than just focusing on transactions.

Overall, the Indian BPO sector is optimistic about growth, despite the global economic uncertainties and have expressed optimism over growth opportunities.

Infosys BPO competitor EXLService has also said it is scouting for acquisitions to cash in on the opportunities in the market.