Investor interest continues in BPO, ITeS

Last month, Essar sold off its stake in outsourcing major Aegis to Capital Square. Andm, KKR sold its stake in product engineering company Aricent after building it into a lucrative company over almost a decade.While the business process outsourcing/business process management (BPO/BPM) and information technology-enabled services (ITeS) sector has long moved past its heyday in India, there is still a sizable investment in these companies from investment bigwigs. "The IT/BPM sector offers opportunities to venture capital (VC) entities, large equity players and strategic investors. VCs can invest in early-stage companies looking to innovate and scale up. Typically, companies with a top line below $50 million," said sector veteran Raman Roy, chief executive of Quattro.He adds that strategic acquirers (like large info tech companies) see big opportunity in start-ups and early-stage companies to improve their own capability and capacity. Whereas large private equity (PE) players see more ..