This site is part of the Global Exhibitions Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 3099067.

Informa
Synnex's IBM Call Center Services Buy Makes 'Quite a Bit of Noise'
September 13, 2013 - News
Comments

**Editor's Note: Please click here for a recap of the biggest channel-impacting mergers in Q2 2013.**

Synnex subsidiary Concentrix now stands as one of the largest brands in the call center market, thanks to its $505 million purchase this week of IBM's customer services business.

Further, the deal gives Synnex distributors transitioning their revenue bases from up-front compensation to recurring revenue yet another option for achieving that goal.

The buy "elevates the previously Tier 2 player into one of the top players in the industry, and we expect it to make quite a bit of noise given IBM’s history, capabilities and client base that Concentrix is picking up," said Margaret Goldberg, IT services analyst at research firm Ovum.

In addition, Goldberg said, Synnex now picks up IBM as a major alliance partner; that's because Synnex, a distributor, and IBM announced a multiyear strategic business partnership where Synnex will provide global call center services for IBM.

"This transaction illustrates the continuous effort of CRM vendors to diversify, as the acquisition will help Concentrix increase the depth and breadth of its offering including capitalizing on technology trends from mobility to cloud systems to analytics," Goldberg said.

But the sale also marks an "interesting move" for IBM as the company tries to get away from operating divisions that generate relatively low margins, Goldberg said. IBM is working to move up-market into IT services, consulting and cloud. Still, though, thanks to the arrangement with Synnex, IBM remains able to offer call center services, "without shouldering the financial challenges of that business," Goldberg said.

"We will be curious to see whether IBM makes similar decisions regarding other parts of its business going forward," she added.

The agreement is expected to close within the next few months. Synnex is paying about $430 million in cash and $75 million in stock.

Comments
comments powered by Disqus
Related News
News
Find out which company has jumped on the digital currency bandwagon.
News
The companies say the partnership makes enterprise-class data encryption for Microsoft Office 365
Craig Galbraith
News
The BitTitan Partner Program includes product discounts, adds certification and a new workshop
Craig Galbraith
News
Milanian is a familiar face to partners, coming from TelePacific, Global Crossing and Women in the
News
snom has introduced the snom 715, a new addition to its 7xx series family of phones that offers the
Kimberly Koerth