Indian outsourcer to ramp up investment in Australia

Riding on the back of steady growth in the local market, offshore outsourcing provider Wipro Ltd, is planning to ramp up investment in Australia over the next two years including the establishment of a near-shore facility.

The facility in Australia will provide customers with a mix of local and offshore service offerings.

Typically a Wipro site, which leverages its global delivery model, has between 50 and 150 staff, according to the company's global president Suresh Vaswani.

He said investment in Australia will be similar to the Wipro model adopted in Europe and US with a mix of local and offshore solutions.

Wipro first established a presence in Australia in 2001 and Vaswani said the company has spent the last five years establishing credibility in the local market.

Local customers include ANZ Bank and Holden but Wipro plans to take on the likes of Accenture, IBM and Fujitsu by winning deals in the state government and utilities sectors.

In addition to application development, Vaswani said the company is also offering to host IT infrastructure remotely.

"This is a new value proposition for Australia; we are applying the same application development concept to infrastructure," he said.

"We have a high level of discpline and use strong methodologies that allow us to provide low cost, quality deliverables."

Earlier this year General Motors awarded IT contracts worth $US7 billion over five years to six vendors including EDS, IBM and Wipro. The contracts are part of $15 billion GM expects to spend on IT in the next five years.

As a result Wipro expects to generate around $US300 million in revenue from the GM deal.

Wipro has already earned about $US30 million from development work it has already completed for GM.

According to Technology Partners International, which worked on one third of all outsourcing deals signed by large firms last year, more than half involved some offshore component, far more than prior years.

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