EDS Plans Low Cost Centre

Mumbai: | Updated: Nov 7 2003, 05:30am hrs
Global outsourcing services company EDS plans to set up its second best shore centre in Pune in addition to doubling its global employee strength under this best shore initiative by the end of next year.

Sources close to the company told eFE that EDS has zeroed in on Pune to set up this centre by December this year. Industry sources have also revealed that the company has hinted at doubling its offshore presence in low cost countries such as India.

When contacted, EDS India managing director Abhay Gupte declined to divulge the specifics of this centre and the target employee headcount in India. He did indicate that the company is in the process of evaluating various locations in India as well as in other countries that have been designated as best shore facilities. The best shore initiative is a part of EDS business strategy.

The best shore initiative of the company was launched towards the end of last year. It is used where clients emphasise on lower costs, explained Mr Gupte.

Currently EDS provides support to its global clients from its facilities in Chennai, Mumbai and Gurgaon. In terms of best shore centres, EDS recently opened a 700-seat contact centre facility in Mumbai.

Mr Gupte added that EDS employs 9,700 applications development and business process services personnel at more than 25 best shore solution centres around the world.

The company estimates that 20,000 employees will deliver best shore services across the globe by the end of 2004.

This increase in best shore employee strength will come from expanding current facilities and building new operations in India and other worldwide locations, he said. The other locations are Argentina, Brazil, Canada, the Czech Republic, Egypt, Hungary, Ireland, Malaysia, Mexico, South Africa and Venezuela.

Using this model, EDS provides applications services work across its 95 dedicated solution centres. The EDS best shore strategy is focusing initially on two practice areas: business process outsourcing (BPO), including contact centre outsourcing, and applications services, development and on-going maintenance.

Mr Gupte explained that the companys best shore initiative enables their clients to tap into a delivery model whereby they can benefit from a resource pool spread around on-shore, near-shore, and off-shore facilities. This also allows a combination of best shore locations, multiple language capabilities, quality, competitive cost and global delivery models.

In India, EDS has operations in Chennai, Mumbai, Gurgaon, Noida, New Delhi, Pune and Bangalore. A T Kearney and its PLM (product lifecycle management) subsidiaries too have a presence in India. On the total employee strength of the company, Mr Gupte said that the company employs more than 1,000 employees in the EDS solution centre, with about 850 employees in Chennai and 150 in Gurgaon (Delhi). The solution centre provides primarily application development and maintenance services.

In addition, EDS has more than 80 consultants, staff and back office support for A T Kearney in Delhi. EDS PLM subsidiary employs more than 125 people in India. The recently opened contact centre in Mumbai is also being ramped up thereby bringing the total employee strength of EDS across all lines of business, at more than 1,450.