The rapidly changing technology makes it difficult for companies to be kept up to date with new process and advancements made. IBM has taken a leading role as a business process outsourcer and business transformation outsourcer. They have added value and managed business processes for companies located worldwide. With leading processes and lowest cost arbitrage they can successfully lead their industry by acquiring growing companies and continuously improving their processes.
Can IBM successfully manage the acquisition of Daksh to achieve its on demand strategy?
1. IBM’s presence as a leader in providing end-to-end services
2. Improving BPO and trying to encourage customers to get BTO offerings.
3. Aligning IBM parent company with Daksh’s core values.

Daksh is one of India’s largest independent business process outsourcing (BPO) service providers. IBM bought them out in 2004 for $170 USD. Daksh was praised for their effective leadership and strong operating model in BPO services, customer relationship management and finance and administration deliverables. Acquiring Daksh, it put IBM into the top five categories of service providers in India. IBM revenues in India had been $1.5 billion USD in 2005, which had been the company’s goal, $1 USD billion by 2002. Daksh held a third of Sprint’s BPO revenues and when IBM acquired Sprint, Daksh was handling some processes that were to be handled by IBM. IBM purchased Daksh at a premium price, even though some analysts say that the potential IPO out Daksh at a fifty to sixty percent premium, opposed to $170 million paid by IBM. Daksh employed six thousand people in five facilities and had clients in many fortune 500 companies. In 2005 Daksh improves revenues by 55% and serviced over thirty fortune 500 customers from fourteen locations across India.

IBM was reinventing itself to get a stronger position in higher