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Offshore centre of excellence -- Indchem, Decision join hands

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Mr Ed Longo, President & COO of Decision Consultants Inc, with Mr N. Kumar, Chairman, Indchem Software Technologies Ltd, at a press conference in Chennai on Friday.

CHENNAI, Feb. 15

THE Chennai-based Indchem Software Technologies Ltd (ISTL), a subsidiary of the Sanmar Group, has tied up with the $120 million US-based Decision Consultants Inc to create DCI's Offshore Performance Centre of Excellence (OPCOE) in the city. The agreement provides for exclusivity between the two companies. DCI will be Indchem's sole US partner, and Indchem, DCI's Indian partner, said company officials.

The centre will start with 30 members, to be provided by Indchem, and the size would be scaled up to 200 by 2002- end, 350 by 2003 and 500 by 2004, Mr Nozer Buchia, Vice-President and General Manager, Application Management Services, DCI, told newspersons here on Friday. DCI would manage the new centre, while Indchem would take care of the operations, he added.

According to Mr S.R. Ramaswami, President and Chief Operating Officer, Indchem Software, the centre would focus on domains such as banking, healthcare, manufacturing, logistics, energy and telecom. Both the companies had expertise in these sectors, he said.

Mr N. Kumar, Chairman, Indchem Software, said the relationship gave each partner access into each other's market. The company would work on DCI's `Optimised Delivery Model' to deliver high quality, cost effective services on time and within budget. Indchem had a small presence in the US, but was active in the Asia-Pacific region and in Europe, while DCI was strong in the US, and has little presence in the Europe, he added.

When asked on the investment and the revenues expected in the centre, Mr Kumar said such details were yet to be worked out. To begin with, Indchem would have a majority stake in the joint venture. The group has invested around $4-$5 million in ISTL, he added.

According to Mr Ed Longo, President and COO, Design Consultants, the company shortlisted Indchem from over 10 Indian firms for their ``track record as a global service provider, along with a stable infrastructure and the US-experienced management team''. The company also compared the offshore models at various other countries including Mexico, Ireland, the Philippines, but settled for India for its efficient labour, he added.

Founded in 1976, DCI is an IT services providers to companies such as Abbott Laboratories, Bank of America and Ford Motor Company, while Indchem, founded in 1999, has delivered 12 projects including the banking sector.

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