Financial Daily from THE HINDU group of publications
Saturday, Apr 15, 2006


News
Features
Stocks
Cross Currency
Shipping
Archives
Google

Group Sites

Info-Tech - Outsourcing
Corporate - Buyback


Progeon brand on its way out

Vishwanath Kulkarni

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.

More Stories on : Outsourcing | Buyback | Brands | Infosys Technologies Ltd

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



Stories in this Section
Progeon brand on its way out


Aircel's talking SMS in TN
Infosys guidance ahead of market expectations
BearingPoint sets up centre in Bangalore
Ramco Systems bags orders from JeJu Air, Air Methods
CMC involved in many e-Governance initiatives
APC offers online learning modules
Adecco added 15,000 temps last fiscal
US industry upset over Immigration Bill delay
Worksoft ties up with ECMi
Infosys revenue tops $2 b; Q4 net rises 20.6 pc
`Margins to remain stable'
`We are 25, dreaming, daring `
Qualcomm sees big scope for BREW platform
Pai to step down as CFO; Balakrishnan in
Mastek ED to take a sabbatical



The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2006, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line