India takes centrestage for Siemens' IT arm

Siemens Information Solutions and systems (SIS), the $5.5 billion IT services arm of the Siemens group, is gearing up its India operations.

Siemens Information Systems (SISL), the company's India IT business arm, will have a global presence and work in tandem with SIS under the new plan. The company expects to touch a revenue of $7.5 billion by the end of this financial year.

To start with, SIS' core software services operations for global as well as domestic markets will be managed from India. It has shifted two of its global operations headquarters to India.

From January 1, SIS' marketing operations - especially related to the transport and the airport verticals - are being executed from India. Its centres in Mumbai and Bangalore will also became the global delivery headquarters for application management.

"We have a strong emphasis on India. We feel that if you are able to compete in India, you are ready for the global market," said Christoph Kollatz, chief executive officer, SIS.

Currently, 13 per cent of SIS' employee base and 4 per cent of its turnover comes from India. Other than focusing on the healthcare, infrastructure and energy verticals, SIS and SISL will concentrate on segments such as transport and airports, utility, telecom, media and manufacturing.

SIS has been a captive unit catering to the internal IT requirements of Siemens and its customers.

Two years back, the company announced that SIS will also compete in the open market. One-third of its business currently comes from Siemens customers and two-third from the external market.

Europe contributes 50-60 per cent, while the UK and the US accounts for nearly 15 and 10 per cent respectively. "Europe will remain our focus area, but there will be an emphasis on BRIC countries such as Brazil, China, Russia and India," adds Kollatz.

"We are growing at 25-30 per cent annually. That is the same as industry norms. We continue to grow at the same rate. However, our priority is not to be in the numbers game but to give value to our customers," said Anil Laud, MD, SISL.

SISL, a systems integrator and total solutions provider, contributes over 10 per cent to the Siemens' global software development. Of SISL's Rs 1,000 crore turnover in FY07, almost 22 per cent came from India.