SYNNEX Acquires IBM's Contact Center Business - Canary in the Coal Mine for the CCO Market?

12 Sep 2013
by Skand Bhargava

Introduction

On September 10, 2013, SYNNEX Corporation announced that it will acquire IBM's worldwide contact center business for US$505 million. The acquisition will combine IBM’s business with that of Concentrix, a wholly owned SYNNEX subsidiary focused on the business process outsourcing space. Based on Everest Group’s estimate, the revenue of the combined entity would stand at US$1.30-1.45 billion. This establishes Concentrix among the top 10 players in the CCO space. The deal definitely creates new opportunities for Concentrix. However, the market will be watching closely to see whether this move by IBM will trigger a domino effect leading to divestment of CCO businesses by other IT services providers to CCO specialists.

 

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