It’s a shakeup in the global BPO industry. Genpact, the IT and consulting company, will acquire fellow IT firm Headstrong. The deal is worth $550 million and will close by 31 May. Genpact will use its own financial resources to complete the purchase.
The company previously expected to see modest revenue growth this year. It’s hoping the acquisition of Headstrong will boost its earnings. Genpact was originally a part of GE Capital in India. The company was spun off in 2005.
On the economy, a new forecast suggests growth this year could be much lower than previously thought. The Asian Development Bank’s half-yearly outlook has cut its projection for the current fiscal to 8.2%. ADB’s earlier estimate was 8.7%.
ADB’s outlook cites inflation as the biggest culprit, partly because it has prompted monetary tightening. Other challenges include rising oil prices and poor growth in global trade.
India could begin exporting wheat this year. On Wednesday agriculture minister Sharad Pawar said the government might lift its four-year ban if there’s a bumper crop this year. India ha already increased its forecast for 2011’s wheat harvest to 84.3 million tonnes from the previous estimate of 81.5 million tonnes.
Here’s a look at Indian markets on Wednesday. The Sensex lost 75 points to 19,612. And the Nifty fell 18 to wind up at 5,892.