MphasiS, an Indian outsourcing company in which Electronic Data Systems EDS owns a majority stake, is setting up a new software services and development facility in Hyderabad in south India.The facility will initially employ 100 staff but grow to 1,000 within a year, the company said.The facility in Hyderabad, which will focus on applications development and management services, will help MphasiS meet its target of increasing staff in India by between 7,000 to 9,000 during its fiscal year ending March 31, a spokeswoman for MphasiS said last week. The company currently has about 28,000 staff.
After it acquired a majority stake in MphasiS, EDS merged last year its own Indian services delivery operations into MphasiS. MphasiS is still listed on the stock exchange but that may not last as a result of Hewlett Packards acquisition of EDS last month, according to analysts. HP does not operate other than through wholly owned subsidiaries, they said.
In India, for example, HP bought out the publicly listed shares in Digital GlobalSoft, a software and services subsidiary in Bangalore, and de listed the company. Digital GlobalSoft became part of HP after its 2002 acquisition of Compaq.
Speaking on the occasion of the inauguration, Shri Damodar Reddy Honarable Minister for Information Technology and Communications, Government of Andhra Pradesh said, We believe that the IT industry has fuelled the growth of the economy of Andhra Pradesh. We welcome companies like MphasiS to invest in our state and partner with us for future development. The setting up of this new center will lead to the creation of more jobs, and AP has abundant talent to contribute to the workforce of MphasiS. I am sure this association will benefit both MphasiS and Andhra Pradesh.
Jeya Kumar, CEO MphasiS said, This is moment of pride for us. MphasiS is on a successful expansion trajectory and continues to grow its footprint in India. We are starting small with 100 seats but hope to ramp up the Hyderabad center to 1,000 over the next 12 months. The center is a testimony to our commitment to the state of Andhra Pradesh. We have received extensive support from the government in helping us set up our new center here.
MphasiS has successfully leveraged talent in India to contribute to global clients of both MphasiS and EDS. This center will be a part of our network of centers globally providing applications development and management services and our resources here will work with teams and clients across the world, he added.
Besides Digital GlobalSoft, and now MphasiS, HP also has its own services operations in India. HP India and MphasiS declined to comment on any delisting plans ahead for MphasiS.