Integrated services under One Infy
Infosys in talks with Citigroup to buy back 26% stake in Progeon
Bangalore, April 14
Infosys may phase out the brand Progeon, its BPO subsidiary, as it has started offering integrated services under `One Infy'. The integrated service offerings include consulting, technology services and business processes outsourcing.
Mr Amitabh Chaudhury, CEO, Progeon, said investing further in brand Progeon and maintaining it separately would not make any sense once the buyback of Citigroup stake in the BPO outfit by Infosys happens. "Infosys is a much stronger brand and clients are increasingly looking forward for the integrated offerings," he said.
Infosys on Friday said it was in talks to buy back Citigroup's stake in Progeon and expects to conclude the deal by the end of first quarter this year, said the CFO, Mr T.V. Mohandas Pai. Citigroup holds about 26 per cent stake in Progeon.
Progeon, Mr Chaudury said, expects to grow at 45-50 per cent in fiscal 2007. The BPO outfit clocked revenues of $85 million with profits of $21 million for FY06. It added one new client during the fourth quarter to take its total client base to 22.
Progeon ended FY-06 with a total headcount of 7,025 and expects to add over 3,000 people during FY07.
The company's attrition rate increased during FY-06 at 40 per cent as compared to the earlier 36 per cent.
Mr Chaudhury attributed the increase in attrition mainly due to the growing competition from the BPO captives. "We are trying various means to curb the attrition even while enhancing the supply of trained manpower itself," he said adding the company had tied up with 220 colleges in Karnataka and Rajasthan for introducing the BPO curriculum under Project Genesis, wherein the undergraduates are trained in the required skill sets.