2 years ago
orenshani7
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Tech Mahindra buys Comverse's Israeli operations
According to the deal that signifies a dramatic change of direction in the global IT services arena, Tech Mahindra, the IT services giant from India, will take over the R&D and maintenance-of-line operations of Comverse, turning some 400 Comverse Employees from Israel and few other European offices, into Tech Mahindra employees. Comverse, a provider of Telecom value added solutions and billing systems, was once one of the most esteemed Israeli high tech companies, but in recent years, it was struggling with declining markets for its products, and with the implications of a stock options backdating scandal it was involved in, in the mid of the first decade of the century. The current, US-based leadership of the company seem to be trying to distance itself from any Israeli connotation, probably due large business opportunities in Muslim countries such as the gulf emirates and Indonesia. Like many high tech companies, Comverse was off-shoreing some of its operations to IT outsourcing companies in India, while many times having a look-down attitude toward its partners in the subcontinent. It seems that now the table has turned, at least as far as Israeli and European offices are concerned.
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I don't know much about middle eastern business dynamics, but I see that this might be a big shift.