IT company IPVG Corp. (PSE: IP) executed today a Joint Venture Agreement with Credence Analytics, the #7 financial solutions provider in the world and #1 in India offering Treasury, Trust and Risk Management Solutions .
Under the joint venture, the parties will form a new company called Verity Analytics, which will engage in providing knowledge process outsourcing (KPO) services to banking and financial sectors around the world. The delivery center will be located in Mumbai, the financial capital of India and will officially commence operations in July 2008.
The value of the joint venture is US$ 1million with 60% of the company owned by IPVG and 40% retained by Credence. Under the agreement, Credence will transfer research and development, customers, existing revenue, human resources and operational know-how into Verity Analytics.
Verity Analytics currently services the top Financial Institutions in the market such as ABN Amro, State Bank of India, Fidelity and Citibank.
The business venture also marks the 1st ever entry of a publicly listed Filipino IT company into the KPO space for financial services in India.
Enrique Y. Gonzalez, CEO of IPVG Corp. said, "Our investment into this joint-venture is in line with our strategic expansion into KPO and expanding our delivery capabilities into India, the recognized leader in KPO services. Through this investment, we are positioned to climb up the value chain into higher margin and higher value work. This is key in advancing the BPO industry in the Philippines and capitalizes on cross-border synergies between Philippines and India. Credence Analytics is a recognized leader in this field and we are already comfortable with them as a partner."
C.K. Guruprassad, Director at Credence Analytics said, "We have a long-standing partnership with IPVG that has enabled us to build our business in the Philippines. With this new joint venture, we are not just extending our existing relationship, we are sharing a vision that will bring the level of competence for the BPO and KPO industry not only in the region but will help us reach the global banking and financial sectors.
Credence Analytics has expertise in providing the best-of-breed banking and finance IT solutions to Fortune 500 companies. Its management team has over 50 years of banking expertise in implementing value-added services to financial institutions.
The KPO market is growing by more than 50% per annum, and generates over US$5 billion of exports for India. The same demand is projected in other markets like the US.
"IPVG will be leveraging on synergies with our strategic investments in the US and Europe, namely PROLEXIC and INFLUENT that currently have Fortune 500 client-base. Through this, we are well positioned to offer KPO services to English-speaking markets (US and U.K) as well as upgrade our service offering from purely voice-work, to non-voice work thereby making us a true BPO provider for the banking and financial sector," Gonzalez closes.
Prior to the joint venture, IPVG has established its Financial Services offerings in the local market through its subsidiary, IP-Converge. The addition of Verity Analytics to IPVG's lines of business gives the conglomerate a foothold in the KPO market not only in India but in the international finance and banking sectors in addition to its data and communication services, online gaming, e-commerce and mobile services.
 According to 2006 Annual survey of IBS (International Banking Systems) magazine, a leading European research publication focused on banking solutions.