China IT Outsourcing Leader, Freeborders, Announces $20 Million In Expansion Capital
Capacity to increase by more than 1,000 seats
Monday, September 19, 2005
San Francisco, CA - Freeborders, a leading technology outsourcing provider from China, announced today that it has secured $20 million in expansion capital from new investor FTVentures and existing investors Internet Capital Group (NASDAQ: ICGE) and TAL Investments. The capital will help Freeborders expand its state-of-the-art technology center in Shenzhen, China as well as its North American and European client delivery team.
"Deepening our vertical market expertise and building scale are keys to continued success at Freeborders," said Ramsey Walker, Freeborders' co-CEO. "We are pleased that our existing investors, Internet Capital Group and TAL Investments, continue to support our growth plans and we are delighted to add FTVentures to this team."
"FTVentures has proven experience in offshore outsourcing and an impressive Global Partner Network that will bring us deeper access to the financial services industry, a key vertical market for Freeborders," said John Cestar, Freeborders' co-CEO.
"After an extensive review of the emerging players in this rapidly growing space, we have concluded that Freeborders is well-positioned to establish itself as the leader in China technology outsourcing," said Brad Bernstein, FTVentures partner and new board member at Freeborders. "The company has already developed an impressive client list including Global 1000 companies like Citigroup and DuPont. Freeborders' vertical expertise and stringent quality standards combined with a 30-50% cost savings over Indian providers makes it a logical choice for companies looking to outsource IT services."
"We continue to be impressed with Freeborders' focus on process excellence and scale," added Kamal Advani, Internet Capital Group managing director and Freeborders board member. "The expansion capital enables the company to build a leading technology center in China both in terms of capacity and quality."
According to neoIT, a specialized consulting firm providing advice and governance on global / offshore ITO and BPO, China's offshore IT services market is estimated to grow 50% in 2005. In March, CIO Insight magazine predicted in The Global Outsourcing Report 2005 that China would eventually surpass India as the number one outsourcing destination.
"Our clients are looking to diversify their global sourcing portfolio to maximize returns while minimizing risk and China is an attractive location for them in part due to the immense and growing labor market," said Eugene Kublanov, neoIT Vice President, Corporate Development.
Deploying a hybrid onshore-offshore delivery model with U.S.-based project management, Freeborders has developed a track record of delivery to North American and European companies in three vertical markets: financial services, technology and retail/consumer goods. In retail, Freeborders possesses decades of domain expertise and has specialized in Product Lifecycle Management (PLM) solutions, catalog services and custom development projects. In financial services, Freeborders provides Service-Oriented Applications (SOA), application development and maintenance and web services for large financial institutions. In technology, Freeborders has one of the largest and most experienced development teams in China, specializing in enterprise application maintenance and integration with SAP and Oracle as well as new application development.
Freeborders is the leading provider of technology solutions and outsourcing from China. Freeborders provides vertical expertise to North American and European companies in financial services, technology and retail/consumer goods. Headquartered in San Francisco with offices on three continents, Freeborders has developed a track record of service delivery to the Fortune 1000 by combining world-class project management in both hemispheres with one of the largest technology centers in China. Freeborders believes China's massive and growing supply of IT talent and the country's emerging importance in the global supply chain make China a strategic imperative for any company seeking cost-effective world-class technology solutions. Freeborders is headquartered in San Francisco, with offices throughout U.S., Canada and Europe.
FTVentures provides capital to growth companies to finance organic expansion, acquisitions, recapitalizations and buyouts. The firm invests in software and business services companies that derive value from its unmatched Global Partner Network, which includes 38 of the world's leading financial institutions. FTVentures' Global Partner Network provides the firm with a unique vantage point into the business driven IT and operating challenges of the global enterprise. Founded in 1998, FTVentures currently has $623 million under management with offices in San Francisco and New York. For more information, please visit www.ftventures.com.
About Internet Capital Group
Internet Capital Group (www.internetcapital.com) builds and owns Internet software companies that drive business productivity and reduce transaction costs between firms. Founded in 1996, ICG devotes its expertise and capital to maximizing the success of these platform companies that are delivering on-demand software and service applications to customers worldwide.
About TAL Group
Since 1947, Hong Kong-based TAL Group has been a leader in manufacturing with a commitment to quality, value and service.
« Back to Press Releases