Hitachi subcontracts to offer services from India

Hitachi Global Solutions Center to increase its staff in India from 200 to 1,000 over next two years

Hitachi has contracted the setting up and running of its Global Solutions Center (GSC) in India to two companies there, according to a Hitachi executive. The GSC will offer services to Hitachi's outsourcing customers and subsidiaries worldwide.

"We decided to adopt this route to get to a fast start," said Rocky Laroia, general manager of Hitachi's Outsourcing and Global Solutions Division on Friday.

Hitachi announced earlier this week that it was setting up its GSC in India in alliance with Satyam Computer Services, a software services company in Hyderabad, and Intelligroup, an IT services and consulting company in Edison, New Jersey, with offshore operations in Hyderabad. Hitachi did not, however, disclose the details of its arrangement with the two companies.

The Hitachi GSC in India will serve as the foundation for Hitachi's global solutions business, especially global outsourcing services, and will provide IT systems development, maintenance, and support for enterprise applications, the company said.

A number of IT services and outsourcing multinational companies, including Accenture of Bermuda and IBM  of Armonk, New York, have set up global services operations in India. However, most of these companies have preferred to set up their own subsidiaries there.

The Hitachi GSC will consist of two operations run and owned by each of the partners, which will provide the facilities, the infrastructure, and the resources and skills required to deliver IT services globally for Hitachi, Laroia said. While the partners will manage the people and the infrastructure, the projects undertaken for customers will be managed by Hitachi, he added.

The GSC has already begun delivering IT services to Hitachi customers in Japan, Hitachi Consulting's customers in the US, and to Hitachi subsidiaries worldwide, Laroia said. "Over time, we intend to add other customers worldwide, other subsidiaries, and internal Hitachi requirements, as the capabilities and facilities expand," he said.

Hitachi Consulting is Hitachi's global business and IT consulting company, set up in Dallas, Texas, in 2000. In 2002, Hitachi also established Hitachi Information Systems (Shanghai) in China to provide system development services for the Chinese operations of Japanese companies.

The GSC in India has sites operational in Bangalore and Hyderabad, according to Laroia. It employs about 200 staff, and expects to increase this to 1,000 over the next two years.

Copyright © 2005 IDG Communications, Inc.

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