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3/30/2007
03:56 PM
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In A Reversal, India Is Outsourcing To IBM

The $29 million deal's value could increase if India's largest real estate company maintains current growth rates.

IBM said Thursday that it has won a $29 million deal to provide technology services to DLF, India's largest real estate company. The agreement marks IBM's second major Indian contract win in as many weeks.

Under the 10-year agreement, IBM will help DLF implement disaster and computer security planning strategies, provide help desk and desk-side PC support to DLF employees, and assist the company with the standardization of its technology infrastructure.

IBM said the deal's value could increase if DLF maintains current growth rates. In addition to providing IBM with a large pool of low cost employees -- its head count in the country recently topped 50,000 -- India is increasingly becoming an important source of revenue and new customers for the company.

Last week, IBM announced that it had secured a 10-year contract worth up to $800 million to provide a range of IT services to Indian mobile network operator Idea Cellular. Additionally, IBM is reportedly bidding on a deal that could be worth up to $1.6 billion to provide services to India's Hutchison Essar, also a cell network operator.

Last year, IBM CEO Sam Palmisano said he would invest $6 billion to build out the company's operations in India over a three-year period. The investment appears to be paying off.

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