Archive for the ‘Outsourcing’ Category

Tech Mahindra opens a new development centre in Bonn, Germany

Friday, March 18th, 2011

Delivering end-to-end Telecom solutions closer to customers

Bonn, 10th March, 2011: Tech Mahindra, India’s leading provider of solutions and services to the telecommunications industry and part of the US $ 8.25 Billion, Mahindra Group, announced the inauguration of its development centre in Bonn, Germany. The state-of-the art facility located in Sirius Business Park, encompasses fully-equipped infrastructure to service clients in Germany as well as Central Europe. Tech Mahindra, providing end-to-end telecom solutions to Telcos globally, has an annual turnover of US$ 976.6 Mn, of which, annual turnover of US$ 976.6 Mn, of which, the contribution of Europe is almost 54%. Within Europe, Germany is the largest revenue contributing country after UK, for Tech Mahindra. The company started its operations in Germany more than 10 years back with offices in Munich and Dusseldorf. Through this strategic move Tech Mahindra plans to further leverage its proven capabilities as a transformation partner and provide an array of business and technology, closer to the customer.

Speaking on the occasion, Mr. Rishi Bhatnagar, AVP-Tech Mahindra said, “As a global player and leader in the Telecommunications domain, we are always keen on strengthening our local front-end capabilities in the region. This development centre will intensify Tech Mahindra’s reach, traction and growth plans within Germany, and enable us to transfer value advantage to our customers. Currently, we have three large engagements in Germany, supporting our Telcos with end-to-end development, Managed Services, large scale legacy outsourcing and transformation among others services. For Tech Mahindra, Europe is a critical market with immense potential and growth.”

The company has a global footprint in 25 countries with 126 clients worldwide. This new facility, equipped with world class infrastructure, will focus on building up localized capabilities to serve Tech Mahindra’s European clientele.

About Tech Mahindra

Tech Mahindra is a leading provider of solutions and services to the telecommunications industry, part of the US$ 8.25 Billion Mahindra Group, India. With total revenues of US $ 976.6 million for FY0910, Tech Mahindra serves telecom service providers, telecom equipment manufacturers, and software vendors. Tech Mahindra enables clients to maximize return on IT investment by providing solutions which help the clients achieve shorter time-to-market, reduced total cost of ownership, and high customer satisfaction. Tech Mahindra achieves this through its domain and process expertise, distinctive IT skills, research and development, and proven innovative delivery models. Assessed at SEI-CMMi Level 5, Tech Mahindra is supported by over professionals from across the globe who provide a unique blend of culture, domain expertise and in-depth technology skill-sets.

For more details please contact:
Smriti Dave
Tel. +91 20 6601 8100, Extn.1779
Mobile: +91 9881124858

Source: Company press release

Why and how to establish an Engineering & Design Business in India? A German Perspective

Tuesday, December 21st, 2010

Hamburg (14.12.2010): India, of late, has seen significant inflows of foreign direct investment (FDI) projects in the areas of engineering and design business. Many firms, for example in the automotive and aerospace businesses, do not rely solely on outsourcing/offshoring of engineering and design work to third-party providers in India, rather preferring to establish own (captive) centres in India to cater to global as well as domestic Indian markets.

A recent study by Department of Scientific and Industrial Research, Government of India, revealed that “the most common reason […] for establishing R&D centres in India was availability of skilled Manpower (75.8%), followed by Proximity to Indian market (67%), existing S&T infrastructure (36.4%) and government’s conducive policies (21.2%)”. On similar lines, the annual Global Services Location Index published by business consultancy A.T. Kearney has been placing India on the forefront of offshoring business. Another study by Booz & Company in 2008 saw India emerging “as the 2nd largest preferred destination for global R&D and innovation with US$ 12.9 billion of R&D investment being poured in India by 184 top R&D companies globally”.

Many German companies, including a number of small and medium-sized enterprises (SMEs), have sought to access India’s perceived strengths in these areas and set up engineering and design facilities to tap into the innovation potential in India. At the same time various newspaper reports and personal experiences narrated by many a foreign manager have suggested massive problems in India which often relate not only to widely known infrastructure problems but also to numerous other aspects such as recruitment of really qualified personnel, extremely high attrition rates, and difficulties in cross-cultural communication even while supposedly speaking the same language, i.e. English.

German-Indian Round Table in Hamburg therefore takes pleasure in announcing an event dedicated to the topic of successfully establishing and managing R&D related business in India. “We are glad to have been able to win over Mr. Karsten Papmeyer, Managing Director of Bremen-based GENSULT GmbH as guest speaker to share his experiences and insights in managing engineering & design subsidiaries in Delhi and Chennai”, says Rajnish Tiwari, Head of GIRT in Hamburg, adding that Mr. Papmeyer has an enormous amount of experience and an inspiringly positive-yet-realistic attitude for opportunities offered by India.

The title of Mr. Papmeyer’s talk would be: “Running an Engineering and Design Business in India: 3 years of experience from a German company’s perspective”. The talk would be held in English and cover the following topics:

  • Reasons for selecting India (and, e.g., not Rumania)
  • Experiences in founding the firm
  • Mastering the cross-cultural challenges in managing the firm and individual projects
  • Recruitment of engineers in India
  • Critical success factors
  • Why and how the German management had to first learn many things afresh, especially to think differently

Additionally, we will take stock of new economic/political developments which possibly have a bearing on Indo-German and/or Indo-Hamburg relations.
The GIRT meeting will take place on Monday, 24th January 2011, at 18:30h in Hotel Baseler Hof (Esplanade 11, 20354 Hamburg) and is in principle open to everyone with interest in Indo-German business relations. The meeting takes place in the form of a “Stammtisch”, whereby each participant is expected to consume his or her evening meal at the meeting and pay for own consumption of food and beverages.

We cordially invite and look forward to welcoming an interested and interesting audience of decision-makers from the Indo-German business spectrum. Registration is possible via e-mail to by January 7, 2011. Since seating capacity is limited we will send the confirmed participants a confirmation of the registration.

About German-Indian Round Table (GIRT)

The German-Indian Round Table (GIRT) was founded in 2001 and forms a loose federation of businessmen and entrepreneurs with strong ties and interests in India. GIRT is targeting to inform about India and strengthen Indo-German business relations. Members of GIRT support cultural and social activities related to India. German-Indian Round Tables are organised regularly in Aachen, Berlin, Düsseldorf, Frankfurt, Hamburg, Hanover, Leipzig/Halle, Munich, Nuremberg, Stuttgart und New Delhi/Gurgaon. GIRT connects about 3,000 people from the Indo-German business community. The head of the local GIRTs and the speakers work on a non-profit basis. Since February 2010 Dr. Andreas Waldraff from Berlin is the chairman of the GIRT. (Further information: /

The Hamburg Chapter of GIRT is headed by Mr. Rajnish Tiwari from Hamburg University of Technology (TU Hamburg-Harburg). Mr. Tiwari works there as a Research Associate at the Institute for Technology and Innovation Management and leads the Research Project “Global Innovation” ( He has done extensive research on Indo-German business relations and is a co-initiator of the India Week in Hamburg (

Press Contact:

Rajnish Tiwari (Phone: +49 (0)40 42878 3776,
Sven Andressen (Phone: +49 (0)421 1617708,

India’s IT industry set sights on German-speaking countries in Europe

Thursday, May 20th, 2010

Nasscom bullish on Europe despite financial crisis

NASSCOM, the apex software industry association of India, believes Europe, and specifically Germanic countries, consisting of Germany, Austria, Switzerland, are still attractive markets despite the current financial crisis.
“Current European uncertainties are short-term in nature and we are confident that the European bloc, as a whole, will continue to be one of the largest markets for the Indian IT-BPO industry,” Nasscom president Som Mittal told ET. As the Indian IT industry looks to expand beyond its traditional markets of the US and the UK, Nasscom has identified Germanic countries as the third-largest market for IT services following the US and Japan.
The software industry body, along with consulting firm Pricewaterhouse-Coopers (PwC), has pegged the addressable market size for IT in Germanic countries at more than $53 billion. As against this, Indian IT firms earn less $2.6 billion from these countries.
Nasscom estimates business from the Germanic countries, the largest IT services market in Europe, has the potential to grow to $10 billion by 2020, but only provided Indian companies take the ‘strategic and tactical steps’ required to succeed in this market. The BPO market opportunity is estimated to be $4 billion and the offshored engineering services market $3.4 billion.
“While the US and the UK comprise 80% of exports, the future focus is to enter newer territories,” Mr Mittal said. The Germanic countries are big IT spenders, with Germany and Austria each spending about 2.5% of their GDP on IT, and Switzerland spending over 5% of its GDP.
“Long-term commitment and effective partnerships will emerge as the biggest deciding factor that will sway client contracts towards Indian companies in the region,” said Sankar Ramamurthy, executive director, PwC. Germanic countries are also recognising that they need technical manpower and access to talent, said Mr Mittal.
“About 80% of employment in these countries is in the SME (small and medium enterprises) sector. They have to invest in IT to become more competitive. Today these SMEs are also being serviced by SMEs in IT sector and neighbourhood IT firms,” pointed out Mr Mittal. The $46-billion Germanic IT services market faces shortage of science and technology graduates and cost pressures.

Source: Economic Times Mumbai; Date:2010 May 20; Section:Business & IT; Page Number 17

Open & Global Innovation in India: The Case of India’s HCL and US-based Rockwell Collins

Saturday, May 8th, 2010

Global Alliance Integral in Helping Rockwell Collins Leverage Global Delivery to Address Customer Needs

SUNNYVALE/NOIDA, MAY 6, 2010 – HCL Technologies Ltd. (HCL), a leading global IT services provider, today announced the 10-year anniversary of its strategic relationship with Rockwell Collins, a pioneer in the design, production and support of innovative communication and aviation electronic solutions for aerospace and defense customers worldwide.

HCL’s Engineering and R&D Division (HCL ERS) runs a large offshore design, development and verification center for Rockwell Collins, which encompasses a team of more than 400 dedicated HCL aerospace engineering specialists. Supporting a multitude of Rockwell Collins initiatives, the HCL team works closely with Rockwell Collins’ engineers to develop and verify various solutions important to the company’s customers.

“Our long and successful relationship with HCL has helped us to fulfill the needs of our aerospace customers around the world,” said Steve Nieuwsma, vice president of Commercial Systems Engineering, Rockwell Collins. “For a full decade, Rockwell Collins has leveraged HCL’s engineering services to quickly adjust to customer demands and the economic changes in the global market space. We look forward to continuing our relationship with HCL as we forge ahead to address new and emerging aerospace and defense markets.”

“We are extremely proud of the success and longevity of our strategic relationship with Rockwell Collins, which was our very first aerospace engagement,” said Ramesh Pillai, vice president of Global Aerospace Engineering Services business, HCL Technologies. “The great collaborative effort on both sides has enabled HCL to build a world-class team that has supported Rockwell Collins’ business needs and objectives over the years. We remain focused on delivering great value centricity across the Rockwell Collins organization, and we look forward to working with Rockwell Collins on future projects.”

Highlights of the HCL-Rockwell Collins’ Relationship:
As one of the first aerospace companies to invest in India as a strategic sourcing destination, Rockwell Collins engaged with HCL in 2000 on a verification and validation program. Demonstrating deep industry acumen and understanding of Rockwell Collins’ technical challenges and business objectives, HCL soon positioned itself as an integral technology services subcontractor.

In 2007, Rockwell Collins forged an agreement with HCL to open offshore engineering design and development centers in Chennai and Bangalore, India, to provide high-value software, hardware and mechanical engineering design and verification services. By providing increased efficiency through engineering and domain process investments, HCL’s offshore design center team helps Rockwell Collins advance smart communications and aviation electronic solutions for its global customer base.

To ensure maximum value in today’s increasingly competitive services market, Rockwell Collins leverages HCL’s innovative pricing and joint investment structures, including its Global Risk and Reward Partnership model (GRRP), to help make sustained investments in its operations. The GRRP model, which at its core is based on shared ownership and value creation, offers numerous benefits to Rockwell Collins, such as cost reduction, revenue increase, customer support and risk reduction. The GRRP partnership structure, currently leveraged for the Boeing 787 commercial aircraft program, helps HCL, Rockwell Collins and product companies to more efficiently develop go-to-market plans.

Source: Press release by HCL Technologies, dated: May 6, 2010

Merck Outsources IT-Services to HCL in a $500 Million Deal

Wednesday, May 5th, 2010

Source: The Economic Times, Mumbai, 05.05.2010, p. 7

INDIA’S fifth-largest IT services company HCL Technologies on Tuesday bagged a $500-million strategic IT outsourcing contract from the US-based Merck Sharp and Dohme (MSD). The pact with one of the largest drug makers in the world may indicate the return of the large-ticket deals in the Indian IT sector. ]…]

Merck will leverage HCL’s near-shore delivery network in North Carolina and global delivery centres in Krakow (Poland) and Shanghai. HCL plans to hire US citizens to boost its onshore delivery for Merck in its centre in Raleigh. […]

The Noida based company will provide BPO services, remote infrastructure management (RIM), and enterprise application development for Merck, over the next five years, as part of the deal. HCL Technologies expects revenues from the Merck deal to start flowing from this quarter onwards. Healthcare and Lifesciences contributed almost 8% to HCL Technologies’ $685 million revenues, for the January to March period, this year.

Multinational pharma majors like Pfizer, Novartis and GlaxoSmithkline already outsource to Indian IT service providers like Infosys, TCS, HCL and Wipro. […]