CIMdata PLM Industry Summary Online Archive
23 August 2004
Company News
CORRECTION/UPDATE-netGuru Unable to Reach Definitive Agreement with DOWCO Consultants Ltd
netGuru, Inc. terminated its recently announced business process outsourcing (BPO) arrangement with Canada-based DOWCO Consultants Ltd. (DOWCO) due to subsequent discussions involving interpretation of exclusivity requirements and the inability of the parties to resolve those issues and execute a mutually acceptable definitive agreement.
Under a preliminary arrangement, joint detailing operations with DOWCO commenced in India on July 30, 2004, and a subsequent arrangement was to be reached to continue and expand these activities. On August 4, 2004, netGuru announced that it had entered into a contract with DOWCO. However, the parties had in fact entered into an agreement in principle and were working toward resolving certain issues in the draft definitive agreement. In subsequent discussions with DOWCO, netGuru management became aware that certain exclusivity provisions were being interpreted by DOWCO in a prohibitive manner. Despite continuing discussions, an understanding workable for both parties could not be reached. As a result of those proposed prohibitions, which netGuru management considered restrictive for future growth of the Company, netGuru elected to terminate its arrangement and joint operations with DOWCO. netGuru management also stated that its BPO operations for steel detailing are ongoing and expanding.
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