ACS Bags a Big One
At last week's Merrill Lynch conference, I got an earful about why there are fewer and fewer mega-BPO and other outsourcing deals these days. Furthermore, because companies are doing smaller, but more, outsourcing deals, overall project risks are lower and client satisfaction is improving.
Against that backdrop, I was pleasantly surprised to see the ACS announcement yesterday (http://biz.yahoo.com/prnews/070213/datu012.html?.v=101). ACS is doing a $171 million HR-BPO deal for GlaxoSmithKline. ACS needed a big win in this space and this re-asserts their right to be at the table for future business opportunities. Congratulations.
I do believe though that the counsel given from the Merrill Lynch speakers is spot-on. We should not expect multi-billion deals in HR-BPO or Finance/Accounting BPO except on a sporadic basis. Let's see what the market provides....
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