LogicaCMG Offshore Services will increase the number of staff at its Indian operations in Bangalore from 400 to around 1,500 over the next 18 months, as more of its customer base show interest in offshore development in India.
"The offshore services proposition now forms an integral part of all LogicaCMG's bids for projects in Europe and the UK," said Mike Weston, managing director of LogicaCMG Offshore Services.
"We expect further growth in our offshore business in the second half of 2003. There are excellent prospects from all market sectors of LogicaCMG's business worldwide."
LogicaCMG provides management and information technology consulting, systems integration and outsourcing services across diverse markets including telecommunications, energy and utilities, and financial services.
The company was formed in December 2002 by the merger of Logica and CMG. Announcing its interim results for the six months ending 30 June, LogicaCMG said it was reducing staff by 2,650 as part of the post-merger rationalisation of its businesses.
The staff reduction announced was higher than the earlier estimation of 2,200, following consolidation of its operations in Germany and France in view of the market conditions, and further reductions in its Wireless Networks business in line with its programme to relocate some development and support work to India.
The number of staff employed by LogicaCMG in Bangalore could go beyond the projected 1,500 if the company secures an offshore business process outsourcing (BPO) contract.
"We are looking at the BPO opportunity, and we may either set up an operation ourselves, or outsource to an Indian company by an arrangement where we would manage the project and the client, while the Indian company would provide the manpower and the facility," said a company spokesman in Bangalore.
The 400 staff employed in Bangalore by LogicaCMG Offshore Services are engaged in information technology services, product development, and manning a technical support desk for customers.
The Bangalore centre is developing products for the financial services, mobile telecommunications, and the energy and utilities markets.
The latest recruits to be hired over the next 18 months would also be deployed for information technology services, product development and technical support functions.
John Ribeiro writes for IDG News Service