The Register® — Biting the hand that feeds IT

Feeds

IBM offloads customer services biz for half a BEELLION DOLLARS

Sells up 'commodity business' BPO to US tech distie Synnex

5 ways to reduce advertising network latency

IBM is planning to outsource its Business Process Outsourcing customer services after last night confirming plans to offload the unit to US tech distie and BPO player Synnex for $505m.

Under the terms of the deal, Synnex will cough $430m in cash and $75m in stock to take on 45,000 soon-to-be-ex IBMers operating across a network of 50 plus global delivery centres.

The business will be housed in the Concentrix subsidiary and will enter into a "multi-year agreement" with Big Blue, the firms said.

Kevin Murai, president and CEO at Synnex, claimed in a canned statement that the acquisition will make it a "global top 10 player in this growing market".

Synnex will provide "customer care" BPO services to clients in 12 industry sectors, the firm added.

IBM said last night it will continue to invest in the BPO services space in areas including finance and administration, procurement and supply chain management, HR and Smarter Workforce, and mortgage origination and servicing.

John O'Brien, research hound at TechMarketView, said "[IBM's] aim is to better exploits its investments in software and platforms and closely align them more closely with BPO".

The disposal signalled a "major shift" in the way Big Blue intends to deliver BPO services which could have "significant implications" for the market, said O'Brien.

He added it was "clear for a while now" that IBM views customer services "at an increasingly commodity end of Business Process Services (BPS)".

"Social, mobile, analytics and cloud are transforming this space, but IBM wants to support clients through this customer experience transformation, rather than delivery the actual operations," he said.

The transaction is expected to close in the next couple of months subject to regulatory requirements and customary closing conditions. ®

Supercharge your infrastructure

Whitepapers

5 ways to reduce advertising network latency
Implementing the tactics laid out in this whitepaper can help reduce your overall advertising network latency.
Avere FXT with FlashMove and FlashMirror
This ESG Lab validation report documents hands-on testing of the Avere FXT Series Edge Filer with the AOS 3.0 operating environment.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Email delivery: 4 steps to get more email to the inbox
This whitepaper lists some steps and information that will give you the best opportunity to achieve an amazing sender reputation.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?

More from The Register

next story
Elop's enlarged package claim was a cock-up, admits Nokia chairman
'Twas an 'accident' to say whopping £15.6m payoff was unremarkable
Oracle's Ellison talks up 'ungodly speeds' of in-memory database. SAP: *Cough* Hana
Plus new, RAM-heavy hardware promises 100x performance improvement
BlackBerry Black Friday: $1bn loss as warehouses bulge with hated Z10s
Biz plan in full: (1) Keep pumping out phones NO ONE WANTS (2) ??? (3) Er, no profit
Would you hire a hacker to run your security? 'Yes' say Brit IT bosses
We don't have enough securo bods in the industry either, reckon gloomy BOFHs
OUCH: Google preps ad goo injection for Android mobile Gmail app
Don't worry, fandroids, wallet-plumping serum won't hurt a bit
Global execs name Apple 'most innovative company' – again
Google bumped down to number three by Apple arch-rival Samsung
Google tentacle slips over YouTube comments: Now YOUR MUM is at the top
Ad giant tries to dab some polish on the cesspit of the internet
prev story