KPIT to build two more offshore units

KPIT Cummins Infosystems, a mid-tier company, which provides information technology (IT) and engineering services, plans to set up two offshore development centres (ODC) for Japanese semiconductor companies in India next financial year.

At present, the company operates ODCs for Dialog Semiconductor, Renesas Technology and Freescale Semiconductor under the semiconductor solutions group (SSG) in Pune and Bangalore. These ODCs evolve various semiconductor designs used in consumer electronics.

The company is in talks with two Japanese companies and a European firm to set up ODCs for them in India.

"We intend to set up at least two ODCs next fiscal for our customers. At present, we have more than 300 engineers working at the ODCs and independent projects. We expect to ramp up the headcount to 500 by next year-end," said Praveen Acharya, VLSI Head, KPIT Cummins.

SSG contributes 10 per cent to the overall revenues (Rs 463 crore in 2006-07) of the company, which employs over 4,000 people. While the ODCs account for 60 per cent of the SCG's contribution, the balance comes from independent projects.

"At the ODCs, we evolve at least 25 designs every year, mostly on demand from customers. We are looking for similar long-term contracts. However, the number of independent projects are also on the rise. Unlike ODCs, there is no scope for repetitive work in independent projects," Acharya added.