Ariba opens development center in India
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BANGALORE, INDIA -- Ariba Inc. has set up a software development facility in Bangalore, India, which will work on product development as well as technical support and services, the company announced Friday.
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Microsoft on Monday formally opened a new software development campus in India that is Microsoft&#39;s largest campus after its Redmond, Wash.
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(InfoWorld) - Indiaâs largest outsourcer Tata Consultancy ServicesÂ (TCS) has set up a global delivery center in Guadalajara, Mexico, with plans to hire up to 5,000 staff there over the next five years. Having a center in Mexico helps TCS, of Mumbai, as it will be closer to U.S. customers and on a similar time zone, said Pradipta Bagchi, a spokesman for TCS said on Thursday. The South American market also provides a significant opportunity for TCS because of a large number of regional companies investing in information technology and related services, Bagchi said. TCS currently has about 5,000 employees in South America, which service over 150 clients there. It operates global delivery centers in Brazil, Mexico, and Uruguay, besides a business process outsourcing (BPO) services center in Chile. Indian outsourcing companies are grappling with the appreciation of the Indian rupee against the U.S. dollar, andÂ rising labor costs. Indiaâs National Association of Software and Service Companies (NASSCOM) has said that the 8 to 9 percent appreciation of the rupee over the last three months is worrisome. The U.S. is the largest market for Indian outsourcers. TCSâ expansion in Mexico led to speculation that the company may be looking for alternative locations to India. Staff in India is still cheaper than in Mexico, and the company has no plans to scale down its operations in India, Bagchi said. A number of Indian companies have set up operations in South America and Eastern Europe to offer a near-shore option to their customers in the U.S. and Europe. Indian companies are also expanding in other countries to look for new talent pools, as it gets tougher to hire staff in large numbers in India. Satyam Computer Services, an outsourcer in Hyderabad, said last year it wasÂ expanding in China, Malaysia, and other locations to tap regional markets and supplement its Indian operations. TCS and Indiaâs second largest outsourcer, Infosys Technologies, have alsoÂ set up operations in China. China has, however, fallen short of expectations as an offshore location, according to Forrester Research. Two years ago, China was viewed as a key challenger to India because of its large number of engineering graduates and the support of the Chinese government to establish it as a key offshore location, Forrester said. But after an initial burst of momentum, there has been relatively little evidence of the countryâs success, the research firm added. TCSâs new center at Mexico will primarily offer software development, Bagchi said. The center will serve clients in Mexico and in the U.S., he added.
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(InfoWorld) - Up against competition for markets and for hiring staff, Indian software outsourcers are focusing on building reusable software that automates specific business processes. These software components can in turn be used across a number of clients, saving costs, and time. Top Indian outsourcers such as Infosys Technologies Ltd. and HCL Technologies Ltd. for example, have developed a variety of components including an RFID (radio frequency ID) component for supply chain applications, according to Forrester Research Inc. senior analyst Sudin Apte. Currently, outsourcers' business models are largely based on a cost-plus model where they add more staff to a project to get more revenue. "They are trying to break out of this linearity and dependence on low-cost staff alone," Apte said. Midsize outsourcers are also investing in creating reusable components, consisting of business applications or middleware. "If you look at the applications we develop, about 30 to 35 percent are common across various applications, so there is an opportunity to make them reusable," said Bala Variyam, vice president for IT delivery at iGate Global Solutions Ltd., an outsourcing company in Bangalore. The company develops prebuilt components that can be used across a variety of industries, as well as business components for banking and financial services that are quickly configured and deployed for customers, Variyam said. Besides developing components in-house, iGate is also looking at open-source components. "We are looking, for example, at an open-source trading platform that can be used for capital markets and investment banking applications," Variyam said. Among multinational services companies, IBM Corp., for example, set up last year in India a Global Business Solutions Center as the company's global hub for the management and creation of reusable software components. IBM also set up last year development centers in Beijing, China, and Pune, India, that focus on developing industry-specific SOA (service-oriented architecture) services that are reusable across various customers. In the short term, this strategy will require Indian companies to invest in top quality staff to understand the business problem and the technology and develop the software. Most Indian companies like Infosys and HCL that are developing reusable components have large teams that are not immediately billable, so they don't earn direct revenue for their companies, Apte said. In the long term, though, these companies could probably have less demand for new staff as they reuse software across a large number of customers, according to Apte. IGate is already seeing dramatic time savings of up to 30 percent on applications development, though time taken on the design and testing phases does not change, Variyam said. Customers are also demanding components that have already been proven across other deployments, Variyam added.
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Wipro Ltd., one of the biggest IT firms in India, is finishing up plans to build a 1,000-employee development center in Atlanta -- the first of four such facilities planned for the U.S.
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Economies in developing Asia are expected to expand 7.7 percent this year, higher than the 7.2 percent initially projected, thanks to booming growth in China and India, the Asian Development Bank said Wednesday.
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The World Bank unveiled plans to lend up to 12 billion dollars to India under a fresh four-year program beginning in 2005 to alleviate poverty in the world's second most populous nation.
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(InfoWorld) - Cisco Systems will open a manufacturing facility in Chennai in south India that will initially make products for the domestic Indian market and also has announced it is setting up a globalization center in the country. The plans were announced Wednesday in Delhi by Cisco Chairman and Chief Executive Officer John Chambers. The globalization center is aimed at driving the company's continued worldwide expansion. Called the Cisco Globalization Center East, the new center in Bangalore will be headed by Wim Elfrink, the company's senior vice president of customer advocacy, who will also be chief globalization officer. The center will have 1,000 employees over the next two years, and the focus will be on local software development and services resources, according to a Cisco spokesman in India. Cisco of San Jose, California, said last year that it willÂ invest more than $1.1 billion in IndiaÂ over the next three years, with most of the spending to expand its research and development (R&D) operations in the country. Cisco first set up operations in India in 1995 and today employs more than 2,000 people in the country in its R&D center in Bangalore and sales offices across the country. The company will triple its staff strength in India over the next three to five years, Chambers said. The company also outsources software and product development to Indian companies. In line with Cisco's outsourced manufacturing model, the company selected one of its partners, Hon Hai Precision Industry Co. of Taiwan, to work with it on the manufacturing facility. The Indian government's ministry of information technology and communications is promoting India as a manufacturing base for technology products, as manufacturing is expected to bring in jobs for semi-skilled people who have not benefited from the Indian software and services boom. Chambers said in Bangalore last year that Cisco was considering the local manufacture of its products following a request from India's minister for information technology and communications, Dayanidhi Maran. A number of multinational companies, including Nokia, Motorola, Dell, and Telefonaktiebolaget LM Ericsson, have decided to manufacture in India. Contract manufacturers such as Elcoteq Network and Flextronics have also set up manufacturing operations in India to target India's growing mobile communications market.
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The Indian government is planning legislation to modernise the country's banking sector.
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BANGALORE, INDIA - SAPÂ plans to more than double the number of staff at its software development centers in Bangalore, India, and Shanghai by 2006, and is also considering setting up a new development center in Eastern Europe, according to a company executive.
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Indian initiative will use a geo-spatial application, built on an open source foundation, to monitor traffic congestion for police, drivers and cell phone providers.
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BANGALORE, INDIA - Lucent TechnologiesÂ announced Wednesday that it is setting up a research and development (R&D) operation in Bangalore, India.
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Microsoft is significantly expanding its software development operations in India as it opens a new campus near Hyderabad, its second-largest campus after its headquarters in Redmond, Wash.
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Microsoft Research Lab India Pvt Ltd, with a dozen scientists and support staff in the first year, will be the third research centre outside the US.
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Wipro Technologies, the global services arm of Indian outsourcing company Wipro Ltd., plans to open a software development center in Atlanta, the company said.
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The new facility will focus in part on geographical information systems and technologies for emerging markets.
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The Bangalore facility is the company's largest research and development center outside the U.S. for systems software and other enterprise products.