LG CNS Global launches India operations

Wednesday, 22 December 2004, 20:30 IST
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BANGALORE: LG CNS Global, the wholly-owned subsidiary of South Korean chaebol's IT services firm, has set up its India software development centre in Bangalore to provide specialised services for enterprises outside the LG group. Making an upfront investment of $2 million, the Indian facility has commenced its operations with about 130 software engineers to undertake product re-engineering, system integration, application development, system management and enterprise services for overseas customers. "We are targeting a revenue generation of $30 million in the fifth year (2009) of our operations with about 800 workforce. We intend to grow at about 80 percent annually to achieve the revenue target," LG CNS president and CEO B.C. Jung declared here Tuesday. Founded in 1987 as a joint venture between LG and the US-based EDS, the $1.4 billion LG CNS (consulting, networking and solutions) is the top IT services company in South Korea with seven subsidiaries worldwide and joint ventures in China and Japan. "We have decided to set up our eighth global software development centre in Bangalore to capitalise on the high-skilled talent pool and the cost-effective advantage of India where salaries are five times lower than in Korea presently," Jung told reporters while launching the centre. Incidentally, LG has a separate software development centre in Bangalore (LG Software India Ltd), which caters to its consumer electronics division with about 500 people working on embedded systems and new technologies. "The Bangalore facility of LG CNS will initially work for global corporations in the US and Europe and extend its services to the APAC region, including India. The centre enables us to merge technical expertise with the local talent for offering best of breed services to our global clients," LG CNS CEO Paul Jeong said. With over 50 percent of its revenue generated from non-affiliate customers such as public, finance and manufacturing sectors, the company will provide a range of services including consulting, network integration and business process outsourcing (BPO) to its customers worldwide. "We will be setting up soon a separate BPO facility in Bangalore to provide e-catalogue and other business process services to our captive as well as non-captive customers, leveraging our expertise and skilled workforce," Jeong stated. Lauding India's emergence as a leading destination for IT services with its cost and skills advantage, Jung said since the company's mission was to provide the best of software engineering capabilities, India was a logical choice to set up their strategic centre for global operations in Bangalore. "We execute a wide range of projects across the verticals, spanning financial services, manufacturing and utilities, transportation and logistics and healthcare, employing about 6,000 people worldwide," Jeong said.
Source: IANS
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