Kpit Cummins to partner with Cummins Inc

Kpit Cummins Infosystems Ltd on July 17, 2007 has announced that its wholly owned BPO subsidiary, KPIT Cummins Global Business Solutions (GBS), has reached an understanding to partner with Cummins Inc to deliver Finance and Accounting (F&A) services to Cummins entities worldwide.

Highlights:

- This expansion in KPIT - Cummins partnership will strengthen KPIT's capability in providing Integrated Services (IT, BPO and Engineering) to the Manufacturing Vertical.

- KPIT Cummins Global Business Solutions (GBS) will benefit from access to the global finance and accounting processes of Cummins Business Services (CBS), the shared services organization of Cummins.

- GBS revenues from this partnership are expected to be USD 1 Million in the first year with a potential to grow into a USD 15 Million BPO business, annually, in 48-60 months.

- Finance and accounting BPO for manufacturing sector is expected to be a significant growth driver for KPIT Cummins and is expected to contribute approximately 10 percent of its revenues by 2009-2010.

- USD 5 Million will be paid upfront. Further payment of up to USD 5 Million will be payable at the end of fifth year depending on achievement of certain financial parameters.

Commenting on this development, Mr. Kishor Patil, CEO Managing Director, of the Company said, "This is a very important development in the 17-year history of our Company and in our successful ongoing partnership with Cummins. Finance and Accounting BPO is a critical addition to the portfolio in our journey to provide end to services (IT, BPO and Engineering) to the Manufacturing Vertical. This partnership with CBS will create a foundation to build a practice in finance and accounting BPO and gives a very compelling offering for our current and existing customers in the manufacturing vertical, as we endeavor to become their partner of first choice."

Source : Equity Bulls

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