IT outsourcing deal from Godrej

In a major domestic outsourcing deal, Godrej Industries and Godrej Consumer Products have signed a 10 year outsourcing contract with HewlettPackard HP. The value of the contract was not disclosed, but would include application development and maintenance, infrastructure management and transformational initiatives. As part of the agreement between the firms, HP will also take over the staff working in the IT operations of the two companies.

This strategic outsourced partnership between HP and Godrej, one of Indias best known brands and leading corporate houses, will power various business transformation initiatives within Godrej and ensure longterm growth and competitive edge.

Since the first such outsourcing deal between Bharti and IBM, a number of similar deals have been announced by Indian business groups. In February this year, the Future group had signed a similar outsourcing deal for USD 150 million with Wipro, in which about 265 employees of Pantaloon Retail had moved to the IT firm. In this case, the IT management staff will be retained by Godrej, while the IT operations staff will move to Hewlett Packard.

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