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HCL-Perot Systems setting up technology campus at Bangalore

Fakir Chand in Bangalore

HPS Ltd, the joint venture of the US-based Perot Systems Corporation and HCL Technologies Ltd, is investing about Rs 400 million to set up a world class technology campus on the outskirts of Bangalore.

Headquartered at Dallas in Texas, the $1.1-billion Perot Systems is a leading software services provider with clients the world over. PSC was set up by Ross Perot Sr., an independent candidate, who contested in the US presidential elections against George Bush Sr., in 1992, and against Bill Clinton in 1996. His son Ross Perot Jr., is now the CEO of PSC.

As part of its ambitious expansion plan in the new millennium, the Delhi-based HPS will locate its second offshore software development facility in the 10-acre campus to equip and house about 2,000 professionals. To come up in a year, the second campus will also boast of a competency development centre, library, gymnasium, hostel, and recreation facilities.

HPS's first such facility with an area of 60,000sq ft is located in Noida, on the outskirts of Delhi, from where about 800 employees develop end-to-end business solutions. It had invested about $20 million in the JV so far.

HPS CEO Vineet Nayyar disclosed here Wednesday on the occasion of the foundation-stone-laying ceremony that the Rs 2.3-billion ($50-million) joint venture would be expanding the Bangalore campus in the next 2-3 years by acquiring another 25 acres of land.

"We have already applied for the necessary approvals from the state government. Our long-term plan is to nurture our intellectual capital and provide a congenial environment for high-end research and development," Nayyar stated. HPS is one of the few Indian IT companies to have achieved SEI-CMM level 5 of certification for achieving standards.

With investments coming out of its working capital and rich cash reserves, HPS is a debt-free company with a paid-up capital of $4.5 million, though its authorised capital is the tune of $20 million. The turnover for this financial year is projected to be $76 million.

According to Perot Jr., the prime focus of HPS is on providing IT solutions in telecom, finance and banking, insurance, and travel and airlines. "HPS is one of the strategic business interests of PSC, which outsources its major software product development and services from the joint venture."

The 4-year-old HPS offers global clients of PSC flexible solutions in vertical and horizontal domains by customising them to suit its customer needs. "The HPS business model leaves the choice of requirements to its clients as the range of services provide end-to-end solutions, including dedicated offshore centre, fixed cost or fixed schedule projects, risk-reward engagements, or time and material assignments," Perot asserted.

The market-size of the products and services HPS is addressing is currently around $11 billion. To become a dominant player in the industry as well as the service area, the company plans to set up more software facilities in Hyderabad, Madras, and Pune. It is also tying up with iExcel, a US-based Internet excellence company for providing internet technologies.

"We intend to take the employee strength to 3000 in a year or two," Nayyar hinted, and added that HPS would go for an initial public offering (IPO) some time next year to raise funds required for the expansion plans. We are yet to work out the details of the IPO," COO C P Gurnani affirmed.

With 70 per cent revenues coming from IT-enabling services, HPS is highly focused on providing expertise to enable its clients migrate to web-based management of businesses from legacy systems and mainframe set-up. Its customer base extends from the US to Europe to the ASEAN region.

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