Mergers and Acquisitions

Essay by gaarry May 2010

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Daksh e-services was acquired by IBM Corporation in April 2004 (IBM Daksh, 2006).It was bought for about 7.2 billion. The main aim was to act as a global hub for managing various business processes for different clients all around the world.

Today IBM Daksh has 25 service delivery centres in India and the Philippines and is an integral part of the IBM's BPO/BTO delivery network around the world. More than 30,000 people work for IBM Daksh today (Asia Africa Intelligence Wire, 2004).

Daksh was created in July 1999 when four people working with US multinationals such as Motorola, 3COM, Xerox and Pepsi saw a report that says "''67% of online transactions are being abandoned due to inadequate customer support'' (Asia Africa Intelligence Wire, 2004). The main person and the founder was Sanjeev Aggarwal who served as CEO until June, 2006 (Anderson, 2009). It offers customer care, technical support and back-office transaction processing services to companies worldwide, including

Inc. in Seattle, Washington. In addition to its BPO facilities in India, Daksh set up a BPO facility in Manila in the Philippines in January that is expected to employ 1000 people by year end. The company's investors included Citigroup Venture Capital Fund, CDC Capital Partners in London and General Atlantic Partners LLC in Greenwich, Connecticut (Ribeiro, 2004). By improving activities such as up-selling and cross-selling, improving customer satisfaction scores, optimizing capital use and reducing operational expenditure, IBM Daksh offers far-reaching and positive impact on shareholder value (IBM Daksh, 2006).

IBM Daksh has worked with a pioneering group of global companies that have successfully used BPO and BTO to execute a broad range of strategies with strong results .It was just over five years ago that IBM Daksh was created. An independent report in the US stated that more than two-thirds of...