Fidelity buys offshore BPO firm Second Foundation

Fidelity buys offshore BPO firm Second Foundation

US-based Fidelity National Information Services (FIS) has expanded its offshore outsourcing operations in India with the acquisition of Second Foundation, a provider of software development and BPO services. Financial terms of the deal were not disclosed.

Second Foundation, which is headquarted in California, provides outsourced software development and services, as well as implementation services of third-party software, from centres in Chandigarh, India, Liverpool, UK and Prague, Czech Republic. The firm also has branch offices in New Jersey, Chicago and Arizona.

The vendor, which already operates an offshore facility in Bangalore, India, says the deal has expanded its "captive offshore global delivery staff" by more than 600 employees.

Shahid Charania, president, Fidelity Business Solutions India, says: "FIS plans to continue to invest in the development of offshore capabilities to broaden its global service offerings and to reduce internal operating costs."

In 2004 Fidelity paid $131 million for a 29% stake in Indian IT services outfit Covansys. At the time the vendor also entered a five-year outsourcing agreement with the Indian firm. Around 575 Covansys staff currently work on internal software application management and development initiatives for Fidelity under the agreement.

Says Charania: "Having a wholly owned, offshore global delivery company complements our existing relationship with Covansys by providing both a captive and outsource alternatives."

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