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Shake out in BPO marketplace

Richard Holway adds some pertinent comments to this story on the possibilities for further shake outs and/or consolidation in the BPO marketplace in his post here - many of the players involved in this arena have a big financial services sector focus.

His final comment poses an interesting question:

"Whatever happens to the Metavante stake, we see little to concern UK BPO leader, Capita. It's interesting, isn't it, that Capita, with still relatively little offshore delivery, regularly delivers 12-13% margins, so you'd have to ask what is Firstsource (and some of the other Indian BPOs) doing wrong?"

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