Armonk, N.Y. (April 9, 2004) -- As the controversy grows in the U.S. over the outsourcing of jobs overseas, IBM announced plans to acquire Daksh eServices Ltd., one of India's largest business outsourcing firms.

The companies didn't disclose the purchase price, but published reports estimate that the price being paid is between $100 million and $150 million. The deal is expected to close in May.

Daksh, which has offices in India, the Philippines, the U.K. and the U.S., provides business process outsourcing services in the areas of transaction processing and customer care services.

Investors in the four-year-old company include CDC Capital Partners U.K., Citigroup Venture Capital Fund and General Atlantic Partners LLC.

IBM said the deal will enhance its capabilities in areas including customer relationship management and financial management services in key industries such as banking, insurance, retail, technology, telecommunications, and travel and transportation. The deal also adds capabilities in India and the Philippines.

"This investment is indicative of our commitment to supporting our clients in this region and leveraging local capabilities to extend our leadership position in the rapidly growing business transformation services marketplace,” said Abraham Thomas, General Manager, IBM India.

IBM has more than 9,000 employees in India.

-- WebCPA staff


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