Noida based BPO firm Exl Service is hoping to gain from the slowdown and is looking at inorganic growth. The company has earmarked $70 million for acquisitions of companies that can either strengthen expertise in key verticals or expand its presence in new markets according to a report in the Economic Times.

“We are looking for companies that can provide expertise in verticals we are focusing on—insurance, utilities and banking. We could look at Eastern Europe for acquisitions as it’s an attractive location,” said EXL president and CEO Rohit Kapoor. Currently insurance and utilities contribute about 45% and 23% respectively to EXL’s revenues.

According to Kapoor the valuations of private companies has not come down as was expected. “Public companies’ valuations have fallen 50-70% while those for private companies are down only 10-15%,” he said. However he expects this to change with the economic crisis looking more severe and deeper. This would force sellers to go to the negotiating table with more realistic terms.