Calcutta, May 17: Cognizant Technology Solutions (CTS) is chalking out plans to invest in business process outsourcing (BPO). However, it wants to tread cautiously.
As a first step, the company has decided to make a small investment in a BPO firm before taking the final plunge to acquire it.
Kumar Mahadeva, chairman and chief executive officer said: “Though we are looking at a number of investments in the BPO segment, the strategy is to make a minor investment rather than an outright acquisition. This is because we are still not convinced that it will be a long-term profitable business, particularly in the call centre area.
“However, we want to be in that game as many of our clients are interested in it. We are looking at higher value-added BPO activities that can generate higher margins before making an acquisition.”