Infosys today announced the setting up of a new delivery centre in Munich to service automobile major BMW.

The software exporter has bagged a 5-year outsourcing deal from BMW. As a part of this deal, Infosys will manage the IT infrastructure of BMW.

This will include services such as maintenance and operations of the Web infrastructure, content management, SAP operations, the company’s internal IT systems and business intelligence systems of BMW Group. Infosys did not give out details of the size of this deal or the number of people who will be employed in the Munich delivery centre.

However, according to industry watchers, this deal could be sign of higher margin outsourcing deals for Infosys, which has been grappling with growth in the last six quarters.

Ashok Vemuri, Member of the Board, Global Head of Manufacturing and Engineering Services Infosys, said: “Infrastructure management is no longer just about short term efficiency and productivity gains. It also requires a partner that can help build an IT organisation that is future relevant.”

With outsourcing clients increasingly asking for companies to service them from local locations, Software companies such as TCS and others have been opening new delivery centres or increasing capacity of existing centres abroad. In a similar engagement, last July, Infosys opened a new delivery centre in Milwaukee, Wisconsin to support Harley Davidson.

Infosys in the third quarter grew European its revenues by 50 per cent on a yearly basis and 14.4 per cent on a quarterly basis, which is more than double when compared to its quarterly revenues which stood at 6.3 per cent. B.G. Srinivas, Head of Europe said, during the third quarter results, the company will continue to invest in France, Germany and Nordic region.

venkatesh.ganesh@thehindu.co.in

(This article was published on March 14, 2013)
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