eTelecare merged with Stream to form giant global BPO firm
Posted on August 18th, 2009
A $1-billion international business process outsourcing (BPO) firm is in the offing and this will happen right here in the Philippines. It will be made possible when the Ayala-backed eTelecare Global Solutions, Inc. and Stream Global Services, Inc. combined forces to form the giant BPO firm that will hire 30,000 workers.
Stream is operating on a $523 million revenues, while eTelecare at $229 million. Their merger will create a global BPO leader located in 50 service centers in over 20 countries in North America, Europe, Philippines, Latin America, India, the Middle East and Africa.
Ayala Corporation’s BPO investment company, the LiveIt Investments Ltd., disclosed that its investee company EGS Corp., which is the indirect parent company of eTelecare, entered into a definitive agreement to combine with Stream in a stock-for-stock exchange.
Under the merger agreement, Stream stockholders will own 57.6 percent of the combined venture, while EGS Corp. stockholders will own 42.5 percent. The Board of Directors and principal of both firms have already approved the said deal.
The company will carry the brand Stream Global Services internationally, while it will operate under the name of eTelecare in the Philippines. It will have an experienced executive team, a technical and product leadership across a wide range of industries, including the technology, retail, entertainment, media, telecommunications and financial service sectors, catering to a broadly diversified Fortune 1000 customer base.
Ayala Corporation President, Fernando Zobel de Ayala said the combination of a world class company like Stream and a Philippine leader like eTelecare will create one of the largest and most competitive companies in the global BPO industry, which is uniquely positioned to deliver a full range of market leading solutions to clients.
He added, “The Philippines is playing an increasingly critical role in the outsourcing strategies of global clients, due to its many advantages, such as a large and high quality workforce and robust infrastructure.â€
Today, the companies have realized that, customer service outsourcing is an important tool to boost sales and gain maximum revenues. While there are still many who are reluctant to outsource their inbound customer services. The truth is that in today’s competitive business environment inbound customer service is smart choice. It allows companies to handle the important aspects of their business. Most of the reputed call centers have skilled work force. They are professional and are trained to handle calls proficiently which are needed to manage a business successfully.
Oh Its a nice combination of e-telecare and Stream.The two firms are already having their mark in the BPO Sector and now they are coming as one.It really makes other firms to think about their position…
Its a great combination of two major firms.Am sure that the new firm Giant global BPO ,Will create its impact on the global market.This is really wonderful mix up.Thanks for such a good info..