French power equipment major Alstom on Tuesday said it was setting up a joint R&D centre with software giant Infosys Technologies in Bangalore with an investment of $39 million over the next three years to develop solutions focused for the fast growing Indian power market.
Infosys will initially employ 60 engineers and ramp it up to 300 by 2008 in the R&D centre, the first joint R&D set up of Alstom worldwide.
Alstom Power President Philippe Joubert said the centre has the potential to emerge as the largest R&D unit of the French major which is bidding for majority of the power generation projects in the country.
Alstom plans to focus 20 per cent of its global and R&D spend in the power division in India. The Euro 14.4 billion Alstom invests Euro 600 million on R&D in 18 centres globally.
"After going through a difficult phase, we are picking up India and Asia are the emerging markets. We either needed to go alone to tap this opportunity or go with a partner. We chose Infosys," Joubert told reporters in Bangalore at the Infosys campus on the city outskirts.
He said Infosys will help Alstom to build products and solutions for the Indian market at a faster rate than from its existing labs.
"We will do everything what it needs to be done to build products for the local market," Infosys Managing Director and CEO Nandan M Nilekani said.
Nilekani said Alstom would spend $39 million on the R& D, while Infosys would build the infrastructure required to build solutions at the dedicated unit located at the campus.
Infosys and Alstom are working together since 2000 with rail transport and technology centre businesses, but the new arrangement is a 'step forward' in strategic outsourcing and developing competence in engineering.
Alstom said it chose Infosys among 19 vendors who bid for the project.
Nilekani said Infosys will invest $20 million this fiscal in Infosys Consulting, the US-based consulting division, and ramp up to 500 people by March 2007 from the existing 100 consultants.
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