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Germany's Continental to set up IT competency centre in India

Written by: Staff

New Delhi, Aug 31 (UNI) Germany-based Continental AG, a leading automative supplier and tyremaker, today announced that it will set up a Global IT Competence Centre in India along with Delhi-based IT service firm Ideafarms, to shift its capacities offshore to maximise cost advantage.

''Euros 200-300 million is spent per year on IT-based infrastructure by the company. Ideafarms' flexible global delivery model will help is implement processes that maximise value and returns for us,'' Continental AG CIO Paul Schwefer told reporters here.

The centre will provide the IT-based products and services to Continental AG, using its IT expertise and capabilities.

The company has cut down its IT expense by 40 per cent during last five years, Mr Schwefer said, adding that sourcing is its business strategy to enable effective use of human capital and optimum utilisation of the resources.

Ideafarms President and CEO Sunil Malhotra said, ''Apart from providing certain exclusive services, Ideafarms will be responsible for the entire functioning of this centre.'' Mr Malhotra said this partnership would lead to employment generation in India. On being asked whether Ideafarms is looking for further tie-ups to sell these services to, Mr Malhotra replied in affirmative but did not divulge further details.

Continental AG will reallocate a substantial 25 per cent of its IT sourcing spend for such facilities.

The current move is a part of Continental's strategy of sourcing process-oriented niche applications to specialised players, to be cost effective and competitive in the automobile industry.

Presently, Continental has its own IT competency centres in Europe, Malaysia, and Manila.

Continental AG operates its business through its four divisions -- automotive systems, passenger and light truck tyres, commercial vehicle tyres and contitech.

Ideafarms, founded in 2002, is an IT service smart-sourcing firm that offers global delivery. It combines IT knowledge with creative communication abilities.


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