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Mid-sized software services firm MindTree will enter the Chinese market, after it bagged a significant outsourcing contract from Huawei,the largest telecommunications equipment maker in China.
For the Bangalore-based company, China marks a new geography entry,[link widoczny dla zalogowanych], besides the US and Europe. Confirming the development, Parthasarathy NS, chief executive officer, testing & IMTS, MindTree, said: "We will be doing independent testing in the telecom space, this project has different phases and potential to become large. This deal allows us to move up the value-chain after our major markets such as the US and Europe, as China has emerged a big growth market."
However, he declined to name the customer, as he is not allowed to do so. The contract deals with R&D and involves managing and supporting independent testing for Huawei’s different product line, where employees of MindTree will do the work at customer location,[link widoczny dla zalogowanych], a person privy to the development said.
"Four companies were bidding for the contract, including an Indian firm, and it was given to MindTree, after complete evaluation of capabilities," the person said on condition of anonymity.
The company, which counts steelmaker Arcelor Mittal, Swedish truckmaker Volvo and insurer AIG, among its top customers, will now be opening a subsidiary in China. Mr Parthasarathy said the company had sent techies from Indian centres to China and will also look at option of hiring local talent there.
"China is an important market and we are looking to set up a development centre, but nothing will be decided till 12-18 months,[link widoczny dla zalogowanych]," said Mr Parthasarathy. "Due to the economic recession, our plans of setting up a development centre in Mexico, as near-shore option for the US is on the back burner,[link widoczny dla zalogowanych]," he added.
China is fast emerging as a credible alternative for Indian IT services companies,[link widoczny dla zalogowanych], with many majors such as Wipro, Infosys and TCS having already set up their development centres there in the process of expanding the operations.
Though, China is generally used as a base to serve the Japanese market, its large domestic market is throwing up lucrative opportunities for the Indian tech companies.