American Express Exploring Sale of Captive Travel Operation

American Express is exploring a sale of part of its BPO unit's travel-related services in India. The projected $300-million sale would follow the trend of other multinational companies that have divested their business process outsourcing units in the country.

In a report published by Economic Times of India, sources revealed that discussions were underway to sell the BPO unit's back-office operation providing travel-related services. The source declined to disclose further details.

Another source told ET that this move could signal a complete disposal of its BPO units.

However, a spokeswoman for AmEx kept mum on the speculations as BPO specialists calculated the unit's value at an estimated $300 million.

Being considered as a captive BPO unit, the financial and travel services provider accommodates its own bank clients. AmEx provides assistance exclusively for their clients' back-office needs such as travel-related services and credit cards. It also covers services in accounting, customer service and other similar transactions for the company's international business operations.

AmEx would be among the multinational companies such as Aviva, GE, British Airways and Conseco, which concluded they could improve their captive operations by turning them over to specialist providers.

AmEx set up its BPO units in India a number of years ago seeking to minimize costs through the country's skilled and low-cost IT and services work force. It also already outsourced work to several software vendors and BPOs in India.