For IT Services Professionals

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	April 9, 2004 IBM Acquires Daksh To Bolster Offshore BPO Skills Another Example Of Vendors Filling In Gaps In Their BPO Operational Skills by John C. McCarthy with Stephanie Moore, Bill Martorelli, Adam Brown

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Executive Summary

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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