Wipro and CAE partner for Indian defense deals
SOURCE: Press Release
DATE: Feb 22nd, 2010
Leveraging domestic Indian markets for international companies and local India based vendors continues to be a key focus area. Though the percentage of total revenue coming from India for the Services vendors is still fractional compared to their overall revenue , but companies are diversifying and looking at growth areas in India as the west still is slooow in recovery. Defense, Consumer goods, Infrastructure are still high growth areas in India compared to say an IT services industry.
Wipro continues to look at ways to get into large domestic sectors within India and has been focussing on defense sector for some time now. It has the advantage which US based firms have in their domestic marketplace that these are considered local firms and hence eligible to vie for sensitive deals within the country including defense, federal government and state deals.
For a number of US firms Indian markets are very important as growth engine. Looking at recent earning reports from a majority of the US based blue chip firms , the international growth continues to be the driver.
e.g. HP garnered 2/3rd of their revenues from outside the US. Asia grew by 29%. Pepsi had a double digit growth in India around 32%, best they have had in decade as their North American revenues fell by around 9%.
A number if domestic service firms both small and large are also looking to expand their domestic footprint of offerings.
Indian IT services vendor Wipro and Canadian simulation and modeling technology provider CAE have announced a collaboration to jointly provide simulation-based training, operations, maintenance and training support services to the Indian defense forces.
Under the alliance, the companies will provide training systems integration and simulation-based solutions for war gaming, C4ISR and defense platforms. The companies will also assist original equipment manufacturers (OEMs) to meet offset obligations in India, required by the Ministry of Defence.
The companies will provide joint investments, sales support and local production support under the alliance.
Partha Sarathi Guha Patra, vice president of Defence, Security & Offsets at Wipro, said: “We are committed to enhancing India’s defense capabilities, and part of this commitment involves bringing state-of-the-art capabilities, technologies
and solutions to India through collaboration and partnership with global leaders. CAE is a recognized leader in training systems integration and simulation technologies, and a company that has made significant investments in India, so we are excited to team with CAE to better serve India’s defense forces.”
In December, Wipro announced an alliance with spend management software vendor Ariba to enable companies across India to accelerate their spend management initiatives. Wipro Infotech, the India and Middle East IT arm of Wipro, also announced a partnership with security and storage software
provider Symantec to offer data loss prevention, and backup and recovery infrastructure consultancy services.
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