GDA Tech to ramp up India operation

GDA Technologies, Inc, a US-based electronic design services and Silicon Intellectual Property (SIP) solution provider for the embedded, networking, and consumer electronics markets, is planning to expand its Indian operations.

The company is also exploring possibilities to acquire an Indian company involved in similar line of service, parallel to the expansion plans.

Addressing mediapersons here on Tuesday, A G Karunakaran, president, GDA Technologies, said as part of the expansion, the company would also recruit 500 engineers within the next 18"�24 month period.

GDA has around 300 engineers in the US and India, of which 200 are employed at its three centres in India -- Bangalore, Chennai and Kochi.

He said the company had ambitious plans in Kochi as Kochi has more bandwidth and a pool of electronic and IT professionals. The company plans to increase the number of engineers at its Kochi centre, which is functioning at Rajagiri School of Engineering and Technology at Kalamassery, to 25 from the present 15.

According to him, the cost of production in the electronic design segment in India is just 1/4th or 1/5th compared to the US market. This gives a niche market for India BPO model services, while the productivity level in India should be enhanced further.

When productivity is the key factor, production cost in India is 1/3rd or half of the US and the Indian service sector should overcome this handicap in order to compete with countries like China and Korea.

He said the company had set a target of 30-40 per cent compounded annual growth. During the calendar year 2005, the company registered a total turnover of $18 million. The projected turnover in 2006 is to the tune of $24 million. The company was targeting a turnover of $50 million within the next three-five years, he added.

The company, founded in 1996 in San Jose, California, has 10 offices and facilities worldwide. GDA set up its first Indian arm in Chennai in 1998 and later opened centres in Bangalore and Kochi.

Its clientele include multinational companies like Intel, Cisco, Microsoft and Toshiba.