Fusion Outsourcing sold for £10m
SA's largest independent business process outsourcing (BPO) company, Fusion Outsourcing, has sold 100% of its equity to global BPO corporation WNS for £10 million (about R129 million).
In an announcement made yesterday, Fusion Outsourcing MD Johann Kunz said the new agreement would go a long way in helping the local company achieve its goal of becoming the market leader within the next 24 months.
“The partnership with WNS will drive rapid organic growth and give us access to international best practices and expertise - the key requirements to achieving our goal.”
Launched in 2004, Cape Town and Johannesburg-based Fusion Outsourcing employs over 1 500 people and supplies services to both the South African and international markets. Listed on the New York Stock Exchange, WNS has about 24 000 employees and 200 global clients.
Kunz says the acquisition is significant in that it repositions Fusion Outsourcing from an independent organisation, to a true international provider. “We are excited to see the positive impact that WNS will have on our business; implementing its worldwide expertise and best practices to support Fusion's ongoing expansion.”
Keshav Murugesh, group CEO of WNS Global Services, says the acquisition is part of the global corporate's strategy and will present considerable opportunities for WNS, Fusion and SA at large. “Expanding our global delivery footprint and entering emerging growth markets are key pillars of our investment strategy. Establishing operations in SA addresses both these objectives.”
Murugesh says the acquisition will not result in any retrenchments, but will rather bolster the workforce as the company is set for growth and will look to hire from within SA's ranks. The local workforce has “the advantage of English language capabilities, rich talent and strong cultural work ethic”. He says Cape Town, in particular, is a pool of knowledge that WNS hopes to leverage, specifically on the actuarial front.
“WNS currently has several existing clients interested in services being delivered from SA. In the long term, we view this growing economy as an exciting end-market of global BPO services, especially in the areas of finance and accounting and insurance-specific services.” WNS has 25 delivery centres across seven international locations.
In addition, says Murugesh, WNS is confident it will bring a host of new brands to the South African market, as well as infuse its international learning and technology models into the country.