BearingPoint sets up India centre with Covansys

Business consulting and systems integration firm BearingPoint is setting up a global development centre in India in partnership...

Business consulting and systems integration firm BearingPoint is setting up a global development centre in India in partnership with Covansys, a consulting and technology services company.

BearingPoint is the latest in a long string of US technology services companies that have set up development centres in India. While other companies have set up wholly owned development subsidiaries, BearingPoint has adopted the unusual route of using the offshore facility of another services provider to set up its own offshore development operations.

Part of Covansys' facility, based in Chennai, will be dedicated to BearingPoint under the partnership.

The tie-up with BearingPoint could lead to similar arrangements with other services companies, said Convansys president and chief executive officer Martin Clague.

"I think we will be on the radar screen, and people might approach us to do it, but you have to pick your partners carefully, as you can't be selling bullets and guns to both sides," he added.

Covansys was one of the first US-based IT services companies to establish offshore facilities in India, and has close to 3,000 staff in the country.

"We look forward to working with BearingPoint to help their clients reap the same competitive advantages of offshore outsourcing that Covansys' clients have been enjoying for more than a decade - rapid deployment, world-class quality and reduced costs," Clague said.

Staff of both BearingPoint and Covansys will be deployed at the BearingPoint global development centre in Chennai. Part of the agreement between the two companies is that they will not poach each other's clients, Franklin said, adding that in general Covansys and BearingPoint do not compete with each other in the market very often.

The global development centre is already fully operational and is targeted to grow to take in 2,000 BearingPoint employees over the next two years, with access to as many as 3,000 offshore developers as demand warrants.

From the Chennai centre, BearingPoint will offer its clients software development, enterprise resource planning implementation, application management, application integration and business process outsourcing.

BearingPoint plans to set up its own wholly owned development centre in Bangalore. When that centre is started depends on demand, although at this point the company anticipated it will be running in about six to eight months' time. 

BearingPoint already has an offshore development centre in Shanghai, which was set up about a year ago.

John Ribeiro writes for IDG News Service

Read more on IT outsourcing