Business
General Atlantic invests in Brigade Corp.
By Our Special Correspondent
CHENNAI
FEB. 11.
Private equity firm General Atlantic Partners LLC has committed an investment of $50 million to customer relation management solution provider Brigade Corporation, which has a fully-owned subsidiary in India.
According to Anurag Jain, founder and senior vice-president (global operations), Brigade will primarily use the funds to acquire back office operations of Fortune 500 companies in the U.S.
The company, which had begun as an e-mail processing outfit, has graduated to offer CRM and further ERM (enterprise resource management) solutions.
Mr. Jain said in a dynamic environment, bigger corporates would increasingly look for outsourcing their non-core activities such as back office functions. Though a few of them have `satisfactory experience' of running their back office functions, he feels that a majority of them may not have the resources and expertise to run these themselves. British Airways has reportedly decided to outsource back office functions. Exult is believed to have bought over the back office businesses of Prudential Bank and the like.
Brigade has two facilities in India - one each in Chennai and Hyderabad. The Indian subsidiary is more a back-end operation. Its U.S. operations are in the nature of getting clients. Typically, Brigade will acquire back office functions of a company and move select jobs to India. It is keen on an acquisition per vertical like say oil and gas. Mr. Jain says Brigade has a developed business process outsourcing model that will save costs for companies over a longer period. According to Mr. Jain, Brigade will take to acquisition and joint venture route to ensure a sustained relationship with the corporate that is seeking to outsource back office functions.
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