Yahoo! to buy Overture for $US1.63bn
Yahoo! is scooping up paid search service provider Overture Services in a $US1.63 billion deal expected to ramp up competition in the search market. Overture is one of the leading commercial search providers, counting more than 88,000 advertisers in the first quarter of the year. Yahoo! said that with the acquisition, it hoped to fill out its search offerings — including pay-for-performance search — and tap into Overture’s client base to sell advertising and online marketplace services. In February, Overture agreed to acquire search technology company, AltaVista, for $140 million, and those assets are now expected to fall into Yahoo’s hands as well. By bolstering its search services and technologies, Yahoo! is hoping to become a leading player in the market, taking on search titan Google. The Overture buy is subject to custom closing conditions, including regulatory approval.
Offshore BPO slow to grow
The global offshore business process outsourcing (BPO) market will be worth $1.8 billion in 2003, according to research outfit Gartner. This represents continued growth of 38 per cent compared to last year’s total of $1.3 billion but is below the excessive hype that had built up around the concept. India is expected to be home for 66 per cent of offshore BPO activity this year. In a separate Gartner survey, conducted in May among 1143 organisations across 11 Asia-Pacific countries, 54 per cent of Australian companies were found to outsource at least one of the six business processes.