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Philips CEO Gerard Kleisterlee is planning to outsource Philips payroll and it is believed that Infosys is the top contender in the outsourcing race.In July this year, Philips created a ripple in the Indian Information technology services space when it outsourced some non core functions to Infosys. It is a part of Kleisterlees strategy to focus on core activities and drive productivity.
As CEO of Philips, Gerard Kleisterlee wants direct contact with key markets. But there is more to the India connection. The expected deal comes right after the July move when Philips outsourced finance accounting and the processing of purchase orders to Infosys.
Infosys also acquired three shared service centres in India, Poland and Thailand absorbing 1,400 Philips BPO staff in the process.
We would look at who has expertise in this particular domain because it is all about expertise and scale in such fields. A partner with good scale and the right sort of expertise for us would be the first discussion partner, said Gerard Kleisterlee.
Usually we approach two or three companies in the field and figure out where we have the best fit. This is the start of a new relationship,a new partnership. And you do that for the long term, he elaborated.
The payroll for 17,000 staff in The Netherlands has been outsourced to a local firm. Now it is a question of scaling up to cover 105,3000 employees across the globe.
Both Genpact and WNS are well suited for the job but both have their hands full at the moment, which leaves the field clear for the BPO arms of Infosys, Wipro and TCS to make a strong pitch.
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