Business Daily from THE HINDU group of publications
Thursday, Mar 06, 2008
ePaper | Mobile/PDA Version
Business Daily from THE HINDU group of publications Thursday, Mar 06, 2008 ePaper | Mobile/PDA Version |
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Info-Tech
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Alliances & Joint Ventures Cognizant in pact with Deutsche Telekom unit
Mr R. Chandrasekaran Our Bureau Bangalore, March 5 Deutsche Telekom’s enterprise customer division, T-Systems, and global IT services provider, Cognizant, said Wednesday they entered a systems integration alliance to cater to European corporations with global delivery requirements for system integration services. The new alliance will draw upon a combined talent base of over 110,000 employees worldwide, comprising more than 40,000 employees working offshore. As part of the new business partnership, T-Systems India and its approximately 1,150 employees will be transferred to Cognizant, subject to appropriate regulatory clearance. By harnessing the onsite, near-shore and offshore strengths of T-Systems and Cognizant, the partnership will facilitate the adoption of a global services delivery model in and beyond Europe, enabling the customers to save costs through labour arbitrage and drive business transformation and innovation through a powerful front-end deeply rooted in the local business environment. The two companies will provide customers with the synergy of local business power such as business culture, language capabilities and operating philosophy and global resources. Our Chennai Bureau reports: The partnership is likely to generate revenues of at least $40 million in the first year from both routes; offshore operations to support T-Systems’ existing clients; and, from jointly-won new clients, Mr R. Chandrasekaran, President and Managing Director, Cognizant, told Business Line. “The financial component of the asset transfer in the form of a share purchase will simply occur at book value,” he said and declined to reveal further details. According to him, the partnership takes the form of business cooperation, without the establishment of a joint venture company. Cognizant will become T-Systems’ supplier for offshore services from India, he said. He expects T-Systems’ India business to double in the next one year, based on business commitments and opportunities that both entities would be going after. T-Systems, with revenues of 12 billion euros, has 56,000 people globally, while Cognizant crossed the 55,000 mark in the December 2007 quarter. Of this combined workforce, more than 40,000 would be employees working offshore. Cognizant has been seening accelerated growth in Europe recently. More Stories on : Alliances & Joint Ventures | Software | Human Resources
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