Fujitsu, Japanese IT Major Expanding Indian Operations
posted in Outsourcing News and Top Outsourcing deals, Outsourcing to India |Source: Business Standard
Expressing confidence in India’s economic and business climate, Japanese IT major Fujitsu, plans on expanding its Indian operations, while hoping to grow rapidly over the next five years. Sensing India’s huge potential, it is confident that it can rely not only on application development and software services, but hardware product development, as well. And, the confidence is not misplaced, as Fujitsu India and Fujitsu Consulting India’s consolidated revenue for financial year 2006-07 stood at $35-million (around Rs. 140-crore).
Chiaki Ito, Corporate Senior Executive Vice President and Representative Director for Next-generation Technology Strategy and R&D for Fujitsu, on his first visit to India told Business Standard: “The Indian IT market will grow by nearly 20% annually and I expect more growth from the operations in India.” Re-establishing its IT business in India with a new focus on management, Fujitsu intends to strengthen its distributors, system integrators and partner relationships, enhancing their support capabilities at the same time.
As well, the Japanese firm plans to set up its business process outsourcing (BPO) operations in India, for which purpose, it recently ended its JV with RPG Enterprise by selling its 29.5% stake in Zensar. Industry. Sources confirm Fujitsu is already looking for acquisitions in this space. “It is no doubt that we should enhance our BPO capability on a global scale, since software and services business is our dominant business. India has excellent know-how and resources for BPO,” Ito says. Adding that his firm does not expect low-cost labour and simple software development like coding from India. However, Fujitsu will not build its R&D centre in a hurry, as it is important that it ensures the R&D centre is created based on Fujitsu’s global mid / long term strategy.
Currently, Fujitsu is catering to its US operations from global delivery centres in Pune, Noida and Hyderabad, where 1,400-employees work for its consulting and products segment.
