KPIT Cummins to partner with Cummins Inc.
Partnership to provide KPIT Cummins a jumpstart in Finance and Accounting Business Process Outsourcing (BPO) for Manufacturing Vertical
Tweet-- KPIT Cummins Infosystems Ltd. (BSE: 532400; NSE: KPIT), a global information technology (IT) and BPO company today announced that its wholly owned BPO subsidiary, KPIT Cummins Global Business Solutions (GBS), has reached an understanding to partner with Cummins Inc. (NYSE: CMI) 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, KPIT Cummins 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-end 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.”
Mr. Pawan Sharma, President, KPIT Cummins Global Business Solutions said, “This is an excellent opportunity for us to accelerate our BPO Business. To enable and support the rapid growth of Cummins business over the last few years, CBS has built very robust finance and accounting systems and processes. CBS’s experience in serving a global manufacturing enterprise will give us a strong competitive advantage in the area of finance and accounting BPO for manufacturing vertical”.
Mr. Floyd Rutan, Executive Director of CBS said, ”For the last several years and as part of our joint venture partnership, KPIT Cummins has provided technology services to Cummins, including IT Application Development and Advanced Technology Solutions. Being competitively priced – a low-cost producer – is an important business strategy for Cummins and its internal organizations, such as CBS. We believe partnering with KPIT Cummins will help CBS reach its goals of consolidation, standardization and automation faster and more economically”.
Notes to Editor
About KPIT Cummins
KPIT Cummins Infosystems Limited crossed Revenues of USD 100 M in FY07 and is a focused IT & BPO Services partner of first choice for its customers across the globe. KPIT Cummins provides integrated services that include BPO, Business IT + Business Intelligence and Advanced Technology Solutions for the Manufacturing and Diversified Financial Services verticals. The Company has grown at greater (56%+ CAGR) than the industry average over the past five years.
KPIT Cummins Global Business Solutions (GBS) is a wholly owned subsidiary of KPIT Cummins providing BPO/KPO (Finance & Accounting, HR, Technical support services, Analytics) services.
A rising star on the horizon, KPIT Cummins has been recognized as one of the 75 leaders among the Global Outsourcing 100 by International Association of Outsourcing Professionals (May 2007). The Company has also been identified as one of the fastest 500 companies across the Asia Pacific by Deloitte Consulting.
About Cummins Inc.
Cummins Inc., a global power leader, is a corporation of complementary business units that design, manufacture, distribute and service engines and related technologies, including fuel systems, controls, air handling, filtration, emission solutions and electrical power generation systems. Headquartered in Columbus, Indiana, (USA) Cummins serves customers in more than 160 countries through its network of 550 Company-owned and independent distributor facilities and more than 5,000 dealer locations. Cummins reported net income of $715 million on sales of $11.4 billion in 2006. Cummins Business Services (CBS) is a shared services arm of Cummins providing Accounting, Human Resources and IT Infrastructure services to various Cummins businesses globally.