Highlights with EIIR (Pareekh) Point of View (POV)
Meta will shift work done by 400 people outsourced from Accenture BPO in the US to a Singapore-based BPO likely TDCX. Accenture has a $500 million annual contract with Facebook.
EIIR POV: The recession will force enterprises to look for cost savings. Vendor consolidation and global delivery model are levers for this. Even big strategic service providers can feel the impact.
Ricardo divests its Software business unit to FOG Software Group, a division of Constellation Software. Ricardo Software generated revenue of ?9.3 million and underlying operating profit of ?1.8 million for its financial year ended 30 June 2022.The maximum cash consideration receivable is $20.5 million (?16.8m).
EIIR POV: Engineering service providers will ind difficult to scale their prduct business. Both reuire different DNA and business model. Many ESPs will divest their product business to ISVs.
Suzuki Motor to establish a global R&D center in Gujarat, India wholly owned by Suzuki Japan for the global markets.
EIIR POV: Enterprises which initially started Indian R&D centers for Indian markets are evolving their Indian centers for developing products for global markets.
Treez , a private company and leading enterprise cloud commerce platform that streamlines retail and supply chain operations within the cannabis markets, announced opening of its new engineering operations in Trivandrum, India, with an initial staffing of 100 employees.
EIIR POV: Engineering service providers have been using Indian tier 2/ 3 cities for controlling attrition and expanding supply base. Now enterprise are also leveraging smaller cities for their GICs for similar reasons.
LTTS wins 5-year multi-million-dollar deal from BMW Group in the infotainment domain targeted for its family of hybrid vehicles.
EIIR POV: Automotive is one the biggets tailwind in engineering services and engineering service providers are winning large deals in automotive.