Alstom, Infosys in $39 M R&D tie up

By agencies   |   Wednesday, 01 June 2005, 19:30 IST
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BANGALORE: Infosys announced a $39 million, three-year engineering services contract with Alstom, the $18 billion power generation and rail transport infrastructure provider. Infosys is setting up an R&D center for Alstom’s power business at its campus in Bangalore. The center will grow its manpower strength from 60 to 300 over the next three years. It will focus on providing engineering services. Alstom has 18 R&D centers across the globe. The center on the Infosys campus is the first one set up in partnership with a third-party service provider. Alstom has a 40 people strong software development subsidiary in Bangalore to handle design of train control systems and application software. The Alstom-Infosys center will be the biggest among its R&D centers. Alstom will spend 20 percent of its R&D budget on its power business in India, said Philippe Joubert, president, Alstom Power. Alstom’s R&D spend is around $750 million, he said, without giving any specifics. “Infosys will create low-risk, environmentally-friendly, next generation solutions for Alstom power plants,” said Infosys CEO Nandan M Nilekani. Since 2000, Infosys has been meeting the software and design needs of Alstom. Unlike its rival Wipro, Infosys is less known for its R&D offerings. Nilekani said that Infosys has several engineering services engagements with many well-known foreign companies. Infosys earned 2 percent of its FY05 services from engineering services.