The Hindu Business Line : Franklin Templeton to expand IT arm

Advertisement

Hyderabad Jan. 25 Franklin Templeton International Services, part of the diversified Franklin Templeton Investments, has announced its plans to expand its IT services arm based in Hyderabad, with an investment of at least $18 million.

Hyderabad now has emerged as their single largest centre outside its US facility near California.

The company has moved on to a $40-million facility, which has the capacity to host some 1,800 people, and announced plans to take up work on the phase II of the project to host 1,000 more, with an investment of $18 million.

The International Services arm based in Hyderabad now employs some 1,100 people and accounts for about 14 per cent of its global IT arm. What started as a build, own and transfer project with Innova, which was acquired by Ness Technologies, has now been fully transferred to Franklin Templeton International Services.

Alongside, it is proposed to set up a business continuity centre in Hyderabad to complement its operations in Chennai and Mumbai.

The President and Chief Executive Officer of Franklin Resources, Inc, Mr Greg Johnson, said, "The Hyderabad operations served as a key strategic initiative to deploy resources effectively as we grow our business globally. Our investment in new campus strengthens our belief in India market potential."

Addressing a press conference here today, Mr Johnson said that the Group, with over $552.9 billion (which is more than all banks put together in India) in assets under management, believes that India and other markets in the region offer immense scope for growth. About $5 billion has been invested by Indian investors in Franklin Templeton and they in turn invested about $6 billion in India for its global investors in securities.

The Executive Vice-President, Operations and Technology, Franklin Templeton, Ms Jennifer Bolt, said that the work handled in Hyderabad relates to transaction processing, data and risk management, equity research and net asset valuations. Significantly, the focus is on grooming people on to career path of investment management professionals.

Referring to market conditions, Mr Johnson said several countries in the region offer scope for growth registering higher GDP and some markets could be overheated, necessitating some minor corrections. "Message to investors is to stay put for the long-term and this always pays off."

Franklin Templeton has Rs 23,400-crore plus Assets Under Management in India handling over 1 million investor accounts. They are exploring more areas for offshoring going forward.

More Stories on : Software | Foreign Institutional Investors

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page