Integreon Inc. wins $872 million BPO contract

The business process outsourcing arm of the Philippines’ conglomerate Ayala Corp., Integreon Inc. has entered into a 10-year BPO contract worth $872 million with a UK-based firm to provide back office services. The contract bagged by Integreon Inc. is said to be the largest BPO agreement signed by any IT/ ITeS firm in the Philippines till date.

According to the terms of the agreement with the European legal and tax services provider CMS Cameron McKenna LLP, Integreon Inc., which specializes in legal process outsourcing and knowledge process outsourcing, will offer facilities on several fields, including human resources and training, accounting and finance, research, marketing and communications, library and information services as well as learning and development.

Quoting the CMS Cameron McKenna managing director Duncan Weston, a news website reports, the UK legal firm selected Integreon Inc. as it was of the view that the Philippines BPO firm was the only organization having a worldwide network experienced experts who were capable of fulfilling its requirements.

It may be noted here that in February this year, a UK-based private equity firm, Actis purchased sizeable minority stake in Integreon Inc. enabling it to have two seats in the Philippines’ BPO firm’s board of directors. This, in turn, not only lowered Ayala Group’s share in Integreon Inc. from 86% to 56%, but also reduced the Philippine conglomerate’s representation in the board from five to three.

The fresh capital investment in the company by Actis has led Integreon Inc. to increase its employee strength two-fold as well as increase its business in the Eastern European nations. While the total workforce of Integreon Inc. is more than 2,000 people worldwide, including 1,200 personnel in India, in the Philippines it presently employs 200 people. During the last quarter of 2009 fiscal, Integreon Inc. generated revenues worth $89 million.