In the same week, PeopleSupport agreed to a merger with Indian BPO firm Essar for $250m or $12.25/share. This seems to be a trend for established Indian companies establishing a presence in Manila with Firstsource, Genpact, Infosys already operating in the county. But Peoplesupport, one of the Philippines’ first homegrown call centers, was offered $17/share from IPVG, a fast growing outsourcing company based also in the Philippines earlier this year that is rejected. Since then it also posted a large Q4 loss of $1.3m. With its share price (PSPT) rising over 30% on news of the merger.
I feel that Indian outsourcing providers now see the Philippines as a necessary location to produce long term success and many local outsourcing companies are now looking for quick exit strategies during tough economic conditions.