Infosys eyes US insurance market with $38 mn buy

India’s second-biggest software exporter Infosys Technologies on Thursday acquired the US-based back-office firm McCamish Systems for
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around $38 million in order to tap into over $5-billion insurance services market in the country.

Atlanta-based McCamish, which counts the Nolan Financial Group, Phoenix Companies and Heritage Union among its top clients, will help Infosys not only to increase its revenues from insurance customers, but also position the Indian offshore firm as a more local company. A local arm will address concerns of anti-offshoring lobbies more effectively.

“This acquisition also gives a good onsite presence, as McCamish is well positioned among the large insurance players as a local service provider,” said Amitabh Chaudhry, CEO of Infosys BPO.

Infosys added in a statement that it will pay McCamish an additional $20 million provided some financial targets agreed mutually are achieved over next few years. With around 260 employees, the BPO firm reported $38.2 million in revenues during the year ended December 2008.
In August, Infosys BPO announced an alliance with financial software company MortgageFlex Systems to offer support services for loan modification initiatives in the US.