The Hindu Business Line : KPIT Cummins in pact with Cummins for F&A BPO services

KPIT Cummins Infosystems Ltd, an IT and BPO company, has announced that its wholly-owned BPO subsidiary, KPIT Cummins Global Business Solutions (GBS), has reached an understanding to partner with Cummins Inc to deliver finance and accounting (F&A) services to Cummins entities worldwide.

According to Mr Kishor Patil, Chief Executive Officer and Managing Partner, KPIT Cummins, this would help KPIT provide integrated services, IT, BPO and engineering to the manufacturing vertical. GBS revenues from this partnership are expected to be $1 million in the first year, with a potential to grow into a $15-million BPO business, annually, in 48-60 months.

Expected revenue

He said a finance and accounting BPO for the manufacturing sector is expected to be a significant growth driver for KPIT Cummins and is expected to contribute approximately 10 per cent of its revenues by 2009-2010.

Mr Patil said $5 million would be paid upfront. Further, payment of up to $5 million would be made at the end of the fifth year, depending on the achievement of certain financial parameters.

“This is a very important development in the 17-year history of our company and in our successful ongoing partnership with Cummins. Finance and accounting BPO is a critical addition to the portfolio in our journey to provide end-to-end services (IT, BPO, and engineering) to the manufacturing vertical,” he said.

Q1 performance

Commenting on the first quarter performance of the company, he said the total revenue for the first quarter of FY08 grew by 32.3 per cent year-on-year to Rs 1,352.9 crore, as against Rs 1,022.6 crore for the corresponding quarter last fiscal.

Profits for the first quarter stood at Rs 126.8 crore as against Rs 103.4 crore for the corresponding period last year, a growth by 22.59 per cent year-on-year.

More Stories on : Exports & Imports | Software

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Walt Disney arm in talks with more mobile carriers

With Chennai overcrowded, TN offering other cities to IT cos

Patni Computer Q2 net at Rs 120.69 crore

Cranes Soft net rises 29%

Tata Elxsi net profit up 18%

TeamLease plans to hire 80,000 people

California Soft buys 51% in Aspire

KPIT Cummins in pact with Cummins for F&A BPO services

UBICS Inc to roll out two products

MTNL banks on Net TV, VoIP to improve margins