EDS to invest $35M in India

Monday, March 06, 2006

NEW DELHI: Information Technology (IT) major EDS has announced its plans to invest close to $35 million in India over the next few years.

The company embarks on a mbuttive realignment exercise to concentrate and transform its highly specialized ?best shore? operations, into consolidated multi-send delivery points.

Announcing the plan, EDS Vice-President businessworkforce and capacity management, Stephen R Heidt said, ?At present we have about 23-25 principle best shore locations. We think 23 are too many. It is not concentrated enough. The overhead and service delivery model is too complicated. Beginning this year, we have begun a concentration drive. The exciting part for the EDS employees in India is that we are concentrating some of the new volume to India.?

EDS defines its best shore locations as highest quality, lowest cost end points. Heidt said that EDS's capital expenditure for India was pegged at $35 million over the next couple of years. ?India is one of our largest best shore presence. Gurgaon, Chennai, Pune and Mumbai are our key concentration points in India," he added.

The company had booked business work headed towards India, allowing it to double the India operations from the existing 3,000 professionals to about 6,000 by the end of this year. EDS focuses on three lines of business that include IT outsourcing, applications business - it has over 40,000 applications developers across the world and BPO business.

Accordingly, the company has centers that specialize in all the three areas. ?Our concentration strategy in best shore is to bring those three together into single footprints,? he said.

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