IoT
IoT
IT Leadership // CIO Insights & Innovation
Commentary
8/2/2009
11:11 PM
Bob Evans
Bob Evans
Commentary
50%
50%

AmEx Latest To Sell Captive India BPO Unit?

American Express is reportedly looking to sell the travel-related services portion of its India-based BPO unit in a move that could ultimately see AmEx sell off its entire India-based BPO operation. Such moves would be consistent with a trend that began about 18 months ago with similar sales by Aviva, GE, and British Airways.

American Express is reportedly looking to sell the travel-related services portion of its India-based BPO unit in a move that could ultimately see AmEx sell off its entire India-based BPO operation. Such moves would be consistent with a trend that began about 18 months ago with similar sales by Aviva, GE, and British Airways."AmEx's BPO unit in India is a captive one: it caters only to the bank's own clients, providing back-office support covering travel-related services, credit cards, accounting, customer care and related processes for the company's worldwide operations," said the Economic Times of India.

Established over the past several years to take advantage of the skilled and low-cost IT and services labor pool in India, these BPOs have evolved for some companies to a point where they no longer offer significant cost advantages.

As that dynamic began to emerge, Aviva, GE, British Air and others have "decided it was cheaper to outsource the work to specialist providers of back-office and customer-care services," the article said.

The article also speculated that the AmEx travel-services BPO employs about 500 people; the company declined to comment on the report.

Comment  | 
Print  | 
More Insights
Comments
Newest First  |  Oldest First  |  Threaded View
The Business of Going Digital
The Business of Going Digital
Digital business isn't about changing code; it's about changing what legacy sales, distribution, customer service, and product groups do in the new digital age. It's about bringing big data analytics, mobile, social, marketing automation, cloud computing, and the app economy together to launch new products and services. We're seeing new titles in this digital revolution, new responsibilities, new business models, and major shifts in technology spending.
Register for InformationWeek Newsletters
White Papers
Current Issue
Top IT Trends to Watch in Financial Services
IT pros at banks, investment houses, insurance companies, and other financial services organizations are focused on a range of issues, from peer-to-peer lending to cybersecurity to performance, agility, and compliance. It all matters.
Video
Slideshows
Twitter Feed
InformationWeek Radio
Archived InformationWeek Radio
Join us for a roundup of the top stories on InformationWeek.com for the week of August 21, 2016. We'll be talking with the InformationWeek.com editors and correspondents who brought you the top stories of the week to get the "story behind the story."
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.