Advanced Micro Devices (AMD) is outsourcing most of its IT infrastructure management - including maintenance and support of global IT applications - to HCL Technologies based near Delhi.
Following a transition period, 70% of the work will be from India and 30% on-site to help ensure 24/7 availability of AMD's IT operations.
A programme management team consisting of representatives from both AMD and HCL will oversee the "co-sourcing" arrangement.
"As part of AMD's overall strategy to build a more variable cost structure and enable greater operational and financial flexibility, we are building strategic relationships with quality 'complementors' that allow our internal resources to focus on the issues and programmes of highest priority and strategic importance for AMD," said Ajay Marathe, vice-president for business process transformation at the chip supplier.
"IT applications and infrastructure management constitute an enormous opportunity for the Indian IT services industry ," said Vineet Nayar, executive vice-president of HCL Technologies.
"Given the increasing cost pressures, the focus today has shifted from IT investment to IT operations management," he added.
"Collaborative co-sourcing has thus become an innovative alternative for companies seeking to enhance the efficiency of their business processes."
John Riberio writes for IDG News Service