HCL Technologies Ltd, India’s fifth largest exporter of software and services, is taking 100% ownership of DSL Software Ltd, a joint venture software and business process outsourcing company it formed with Deutsche Bank AG two years ago.
New Delhi-based HCL said it plans to acquire the remaining 49% stake in DSL Software it does not already own from Deutsche Bank, in line with plans for the business at the time of the original deal in September 2001. At that time, HCL took a 51% stake in Deutsche Software Ltd, the offshore software division of Deutsche Bank for $25m, and this was then renamed DSL Software. The deal gave HCL a majority stake in the operation, and also gave it first refusal on all IT services business for Deutsche Bank in India for the first seven years of the joint venture. HCL also began to target other large financial services businesses through the venture.
DSL Software, which is based in Bangalore, India, provides IT consulting, application development, and application maintenance services for Deutsche Bank’s operations in Frankfurt, Singapore, London and New York. At the time of the initial deal the company employed some 450 people, but it has since grown rapidly to employ approximately 1,500 people today based in offices in New York, London, and Singapore.
It has more recently moved into the high-growth area of BPO; where it now delivers services such as reconciliation, accounts and payment services, document imaging, mail and HR processing. The BPO operation has been experiencing the strongest demand for DSL Software, where it currently employs 450 of its staff. HCL is counting on the continued growth to come from the increased focus for banks and other financial services firms moving back-office processing work to lower-cost locations like India.
DSL Software is currently establishing a disaster-recovery center in Chennai, where it will also focus on delivering third-party work. Overall, the division expects to increase staff numbers during 2004 to 3,000 and to generate revenue of about $100m.
This article is based on material originally produced by ComputerWire.