INFOSYS BAGS
$39-M ALSTOM DEAL
Infosys has announced a $39-million, three-year
engineering services contract with Alstom, the $18 billion
power generation and rail transport infrastructure provider.
Infosys is setting up a research and development
(R&D) centre for Alstom's power business at its campus
in Bangalore. The centre will grow from its initial manpower
strength of 60 to 300 people in the next three years. It will
focus on providing engineering services such as product development,
engineering simulation, control engineering and product life
cycle management. Alstom has 18 R&D centres across the
globe. The centre at Infosys campus being the first one set
up in partnership with a third party service provider.
Alstom also has a 40 people software development
subsidiary in Bangalore to handle design of train control
systems and application software. The Alstom- Infosys centre,
in the near future will be the biggest among its R&D centres.
Alstom will spend 20% of its R&D budget for the power
business in India, said Mr Philippe Joubert, president, Alstom
Power. Alstom's R&D spend is around $750 million, he said,
without stating specific R&D spend on power and transport
division.
“Infosys will create low-risk, environmentally
friendly, next generation solutions for Alstom power plants.”said
Mr Nandan M Nilekani, CEO, Infosys Technologies at a press
meet. Infosys, since 2000 has been meeting the software and
design needs of Alstom. Unlike its rivals like Wipro, Infosys
is less known for its R&D offering.
Mr Nilekani said that Infosys has several
engineering services engagements with many well know foreign
companies. Infosys earned 2% of its FY 05 services from engineering
services. India is fast becoming the global hub for engineering
services due to the huge market it provides and significant
talent and cost savings it offers, he said.
Mr Joubert said that Alstom's Vadodara factory
will be a global engineering and manufacturing facility for
hydro power, besides Brazil and China. It will also be a centre
for engineering and manufacturing rotating machines.
“We want to use India's technical competence
not only for the domestic market but also for our global operations.”
he said.
