Philips plans outsourcing unit in Chennai

Philips India is planning to set up a global shared service centre in Chennai to undertake financial and management accounting jobs for Philips Associate Companies worldwide.

K Ramachandran, vice chairman and managing director, said the proposed unit will be registered as a software technology park unit (STP). "This will be an unit under Philips India. We will earn revenue for rendering service to Philips associate companies globally," he said at the company's 4th annual general meeting in Kolkata today.

In 2002, Philips set up a national shared service centre in Kolkata to consolidate and standardise the accounting and control processed across the company. The centre, which now employs 60, has become a centre of competence as regard to accounting and data processing in India.

"The company has gained substantial expertise and experience in providing value added services. We want to extend this by establishing the shared service centre," he added.

The company plans to have 60-70 people by end of the year in that centre.