(By Anthony Miller – Wednesday, 13th May 2009 8:00am). UK-based – but increasingly international in scope – BPO player, Xchanging has extended its Enterprise Partnership (EP) in Germany with Allianz Global Investors by acquiring FondsServiceBank (FSB) business unit, the investment funds administration business of DAB bank. Xchanging will pay up to £19.1m cash.EPs are the signature feature of Xchanging’s business model. They are basically customer joint ventures in which Xchanging has majority control. There is the expectation down the line (usually after 5-6 years) that Xchanging will assume full ownership, turning the EP into a more traditional outsourcing contract (as with BAE Systems). By then it is expected that the EP will have brought on a number of third-party clients. Xchanging’s EP with AGI was established in August 2007.
This is a very different outsourcing model than say, Capita, and well suits Xchanging’s core business, though they have traditional BPO and outsourcing contracts too. It sounds like the AGI EP is going to plan.
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