In line with strategy to enter the BPO space Mascot Systems , a leading global offshore software services company, today announced its entry into the IT Enabled Services (ITES) segment with the proposed acquisition of the Contact Center and Facility Management businesses of Delhi-based outsourced services provider IT&T Ltd. The Company has signed an agreement to acquire as a going concern, IT&T’S BPO business, by way of a business purchase. It will also acquire IT&T’S Facility Management business by buying out IT&T Technology Services Ltd., a subsidiary of IT&T. The acquisition is subject to approval of Mascot’s Board of Directors, terms and conditions of agreement, and other statutory and regulatory approvals as may be applicable. Explaining the rationale for the acquisition, the company said in a statement that the acquisition is in line with Mascot’s earlier articulated strategy to enter the BPO space.

The acquisition will enhance Mascot’s services portfolio and enable it to rapidly establish a presence in the BPO space in a relatively cost-effective manner so that the Company can leverage its own strengths and global resources to ramp up the acquired business. According to Gartner Group estimates, the global BPO market is expected to reach $234bn by 2005. NASSCOM and McKinsey have recently increased their projections for the Indian IT Enabled Services market in 2008 to $21bn from the $18bn earlier. IT&T’S domain expertise, proven team and operating experience in Customer Relationship Management, Affinity Marketing and Helpdesk Support will enrich the suite of services offered by Mascot and enable it to provide its clients a complete range of IT services and solutions. Mascot has plans to rapidly scale-up the acquired business - both, financially and operationally - over the coming two years by building upon Mascot’s established strengths and competencies.

 The BPO business will come to Mascot Systems for a cash consideration of Rs188.81mn while the Facility Management business will cost Rs23.9mn. The acquisition will bring in the BPO business of IT&T Limited as a going concern, including over 400 employees, its infrastructure, equipment, facilities, contracts and intellectual property. Mascot will acquire the customers and prospects of IT&T across the United States and Europe. As part of the deal, the vastly experienced executive management team will become part of the Mascot Group and drive the day-to-day business.