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Vishwanath Kulkarni

`At present, we are working with our global OEM customers on integrating the software skill sets acquired in India with our manufacturing capabilities in China to provide complete solutions.'

Bangalore , Dec. 31

ELECTRONIC manufacturing services (EMS) firm Flextronics Inc plans to make India its global hub for software and design services over the next three to five years.

The company has carried out a string of acquisitions over the last one-year in India including Hughes Software Systems, Future Software, Deccanet Designs Ltd and eMuzed among others for building its software capabilities.

Mr Peter Tan, Executive Vice-President and Managing Director, Flextronics Asia, said India would become the company's global hub for software design and services in areas of telecom and data communications over three to five years.

"The company would look out for more acquisitions as and when opportunity arises," Mr Tan said but declined to spell out the details.

Flextronics is looking at augmenting its design and software capabilities in areas of consumer peripherals and wireless products, Mr Tan told Business Line in a telephonic interview from Singapore.

Flextronics is currently transforming itself from being a mere EMS company to a full end-to-end solutions provider by offering design to manufacturing services.

The recent acquisition of software and design capabilities in India goes a long way with our future growth strategy, he said.

"At present, we are working with our global OEM customers on integrating the software skill sets acquired in India with our manufacturing capabilities in China to provide complete solutions," he added.

Revenues from software design and services account for a small portion of Flextronics' overall earnings.

"We expect the revenues from software design and services to be between $250-300 million this year whereas the overall revenues would be over $16 billion," Mr Tan said.

Bulk of the company's software revenues are derived from India, where about 70 per cent of its software resources are located, Mr Tan said.

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Flextronics eyes more buys in India — Plans hub ffor software, design services

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