Deal Economy: Coalition Development packed off to CRISIL

The S&P JV in India, CRISIL, India’s own rating agency which has been pioneering Equity ratings and leading the three rating agency field in the sub continent picked up Coalition Development Analytics for $43 M

A human capital company, Coalition Development provides revenue and market sizing level estimates to Global investment banks

According to Dealcurry, CRISL’s Global Research and Analytics business operates out of four International centers including Argentina, China nad Poland ( and of course, desh)

CRISIL’s KPO is Irevna. it bought Pipal Research for $11 mln in 2010

The GIR effort thus continues to look for scale. I wonder if the KPO model is indeed going anywhere. Yes Bank abdicated its KPO extension plans in 2007 before the Financial implosion in US stopped groth in its tracks for the outsourcing industry. Yetr the outsourcing annuity business is worth INR 750 B or $13.6B apart from any single digit growth they can still get. Infy’s the dark horse now and CTS keeping the dream alive. Needless to say, size dictates that the KPO model is also best served byeither a Infy subsidiary or a global client subsidiary. Hoever Goldman SAchs and JP Morgan for one are happy enough keeping indian participation to tecnology.

The limitations of niche KPO businesses arise from the proprietary nature of most critical Financial research and the closeness of research and trading teams ( not insider trading) that is a necessity for executive direction and maximum benefits to the banks.

Of course global banks already working on 25% reduced business in Commodities ill be back to a low revenue base in trading businesses this quarter and Commercial Banking ill be trying to make a return as the mainstay business of the banks. 

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