Executive Summary (This is a document excerpt)

Earlier this week, IBM acquired Daksh eServices, an Indian BPO and call center vendor. Daksh was one of the venture-funded call centers established during the Indian call center boom in 2000. This acquisition represents a reversal from IBM's previous position of subcontracting lower-level call center work to third parties as part of its BPO deals. The acquisition demonstrates the move by IT vendors to build out their day-to-day operational capabilities. It also indicates that access to low-cost offshore labor is as important as transformational and re-engineering capabilities. And last, it shows that offshore BPO investors, nervous about the market and issues like rising attrition, are open to selling out.

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