Wipro to take over Ericsson's R&D centers in India
BANGALORE: A letter of intent signed between Wipro and Ericsson here fulfils plans of the Bangalore-based software major to acquire "research and development outsourcing facilities" as announced at the end of the first quarter this year.
The company had set aside $20 million as it saw a tremendous business potential in outsourcing.
In return, Wipro would provide consultancy services to Ericsson, which has R&D centres at Delhi, Mumbai and Hyderabad.
"It is not possible to provide details of the deal because due diligence will be completed only by the end of this year. For the moment, we will be offering employment to all the 300 software professionals working at Ericsson's R&D centres," a Wipro official said, speaking on condition of anonymity.
"Our leadership in R&D outsourcing to global customers is reinforced with the signing of the letter of intent for one of the first total R&D outsourcing deals in India," A. L. Rao, president of the telecom and internetworking group of Wipro Technologies, said in a statement.
"Ericsson has identified India as an important outsourcing location. Wipro's technical depth and quality leadership make it the ideal long term partner to Ericsson for software development" Ericsson India MD Jan Campbell added.
Ericsson India, which has been providing a wide spectrum of solutions to India's telecom industry for 100 years, has played a key role in spreading the cellular revolution in India.
The company has a market share of 40 per cent, twice that of its nearest competitor, with 27 of India's 53 GSM networks using its solutions. Ericsson's digital switching systems handle over 75 per cent of the international calls made through the gateway of international telephony provider Videsh Sanchar Nigam Limited.
Source: IANS