Indian IT services provider Infosys to take over 1,400 Philips employees

Posted on July 28, 2007
Filed Under Computers, Uncategorized

The Indian IT services provider Infosys Technologies has finally arrived in Europe. The company has concluded an outsourcing agreement with the Dutch Philips Group within the context of which more than 760 Polish Philips employees will join Infosys. For 28 million US dollars the No. 2 of the Indian IT services market will acquire the Philips Services Delivery Centers in Poland, Thailand and India. A further 190 Thai as well as 445 Indian Philips employees will hence in future also be working for Infosys BPO (Business Process Outsourcing). In return Philips has undertaken to buy finance and accounting as well as purchasing-order processing services worth 250 million US dollars from Infosys during the next seven years.

So far Infosys has been in evidence in Europe above all as a supplier of development services for major software projects. In addition Infosys customers have the option of having their software maintained remotely from India. Since the end of 2005 the rapidly growing group has had a branch office in the Czech Republic. To date, however, Infosys still generates two thirds of its sales revenue in the US. For the quarter just ended the income statement of the group drawn up in accordance with GAAP regulations indicates that the company was able to boost its total sales to 928 million US dollars; which amounts to a nearly 40 percent increase in quarter-on-quarter terms. The quarterly net earnings of the group amounted to 263 million US dollars. The number of people employed by the group meanwhile amounts to some 80,000; but that figure is set to rise to above 100,000 by the end of this year.