US GlobalLogic to invest $ 50 mn in India

New Delhi: US-based outsourced product development firm GlobalLogic will invest million in India in the next year and is looking to acquire small and midsized companies here, to expand its presence.

The company is also targeting 0 million in revenue globally in the coming fiscal, with India contributing 15-20 per cent from 9 per cent currently, GlobalLogic, Director Marketing, Rohit Sharma told media.

"We will also ramp our Indian headcount to about 3500 in the next two years from currently over 1500," he added.

"The company will invest million in India in the next year. Our focus will be on inorganic growth through mergers and acquisitions and we are already in talks with various companies here regarding this," he said.

Sharma, however, refused to divulge any further details saying, "We are aggressively looking for acquisitions and expect to close the acquisition deal in India in the next 6-8 months".

GlobalLogic last week opened a development centre in Pune and will open another one in Hyderabad in the next year. The Pune centre currently employs 65 people, which is likely to go up to 2000 in the next two years, he said. It currently has delivery centres in Noida, Nagpur and Ukraine, besides the latest addition in Pune.

GlobalLogic, recently acquired the R&D operations of Kewill, a supplier of global supply chain control software and services, for an undisclosed sum. Kewill would now transfer its R&D operations in India. The company will transfer the existing 65 employees of Kewill from Aurangabad to the Pune centre.

The Pune centre would be built up as a Global Centre of Excellence focussing on areas like storage and logistics. This follows the model of the company's such centres in Noida for technologies like Voice over Internet Protocol (VoIP) and Nagpur for mobile and wireless technologies.

GlobalLogic, which acquired the Nagpur-based Lambent Technologies last year, follows a new emerging model of TOB route to acquire companies.

The TOB model or the Transfer-Operate-Build model is the reverse of the BOT or Build-Operate-Transfer model. In this, a company transfers its captive unit or division to another company for a small upfront payment. The acquiring company takes over the operations and employees of the captive and runs the operations.

The two firms also sign a contract, which guarantees a fixed level of business to captive, translating into revenues for the acquiring firm.

For the firm, which transfers its ownership, the transfer usually means greater efficiencies and cost savings and for the acquiring firm, a ready pool of trained manpower and a new revenue stream.

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