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TCS, i2 to set up software centre in Bangalore

BS Corporate Bureau

Tata Consultancy Services, Asia's largest software producer, has tied up with Dallas-based i2 Technologies to set up a solutions centre at Bangalore with an initial investment of $5 million.

The centre will primarily offer I2 Technologies solutions in India. I2 Technologies is a global leader in supply chain management solutions.

Rajib Roy, senior vice-president, global solutions delivery, i2 Technologies, said, " We have already been working with TCS who have been implementing our solutions worldwide and this alliance is an extension of the relationship."

The solutions centre would be an offshore implementation centre which would undertake upgradation programmes, fixed-price projects as well as other standard implementation projects.

The centre is expected to have an employee strength of around 300 by the end of the year which would be scaled up to around 600 in the following year. The two parties would contribute equally to the employee strength.

i2 Technologies also plans to move around 80 of its employees currently employed in the US to the solutions centre whereas the others would be recruited locally.

On the reasons for setting up the solutions centre in alliance with TCS, Roy said that " the two companies have a good set of complementary skills and the strategic visions of both do not clash. We also do not foresee the two getting into a competitive scenario."

"We plan to bring down implementation costs substantially by shifting overseas work over here," added Roy.

N Chandrasekharan, vice-president , TCS, said, "While the solutions centre would primarily be involved in project implementation work initially, the partnership would expand into other areas subsequently. We would also be conducting some developmental work for I2 Technologies from this centre at a later stage."

The solutions centre has already bagged its first customer and the alliance expects to bag around 50 customers in the first year. The bulk of the fixed price projects of i2 Technologies is also expected to be shifted to the solutions centre.

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