In what will probably be a first for the Indian IT industry, the country?s second largest software services firm, Infosys Technologies, will act as a consultant to Rajasthan, Madhya Pradesh and Uttar Pradesh for their respective Accelerated Power Development Reforms Programme (APDRP) projects. As a consultant, Infy?s responsibilities will include identifying implementers of the project from a list of companies that features many of its competitors, like TCS.
According to industry experts, this could lead to a possible clash of interest, as Infosys will be privy to the architecture of the bids put in by its rivals. ?It could be possible that there could be a clash as the deal size and shape will not be very different from state to state,? said an IT analyst.
Binod HR, senior vice-president and head, India Business Unit, Infosys Technologies, told FE that the company had put in a bid and won the contract as a consultant in these states. The company has bids as an implementer in states like Maharashtra, Karnataka and Goa.
On being asked about the possibility of clash, Binod said, ?We have expressed interest in that area and have been chosen to be a consultant. In other states we will do implementation. We are a professional organisation and will go by conditions of the tender . We will pair a fair game, we are known for it.? While the size of the project will vary from state to state, it is expected to be anywhere between Rs 200 crore and Rs 400 crore and will run for around five years. The revenue for the consultant, whose mandate will be to draw a roadmap for the project and also help in identifying the final implementer, will run into a few hundred crore.
The APDRP projects, involving the overhaul of the state electricity boards have attracted some of the top IT players. In fact, TCS has already won contracts as an implementer in West Bengal and Gujarat, for which Infosys had also bid as an implementation agency.