A director of Infosys has denied that any of the 350 staff gained in the company's acquisition of Expert Information Services will be relocated offshore.
Infosys Technologies Australia's Srinath Batni, also a member of the board created to direct Expert Information Services, said the deal would help Australia's IT industry compete against the rest of the world.
"This is not about moving jobs offshore," he said.
"We are bringing the global delivery model to the Australian market."
Batni and Expert CEO Gary Ebeyan were speaking immediately after yesterday's announcement that the Indian services giant had acquired Expert for $31 million. India-based Infosys employs 19,000 staff worldwide.
Ebeyan will continue as CEO of Expert, while the new board will have six Infosys members to two from Expert.
Ebeyan was equally adamant no jobs would be moved or lost.
"Absolutely not. If anything this will enhance job security. This is about a strategic fit of two businesses. It will utilise local jobs."
"I had a meeting [yesterday afternoon] with my staff and they were very excited about it," said Ebeyan.
Infosys employs 73 staff for its Australian operations. Of these, 19 are permanently based in Australia, and will be integrated into Expert's operations.
The Indian services giant's first acquisition was a sign of the strength of the local IT industry, according to both Batni and Ebeyan.
"We [Infosys] looked at companies around the world, and this is the first company [Expert] anywhere in the world that has met all the [Infosys] criteria," said Batni.
An Expert employee previously told IDG that the company's Telstra CRM contract, which has been valued at $50 million, was pivotal to Infosys' interest in Expert. According to Infosys, Expert's telecom business accounted for 74 per cent of its total revenue in the last financial year.
"The deal was not made because of Telstra," said Ebeyan.
"This is about a lot more than one engagement. The deal gives us unprecedented strategic value, we can take IP to global industry."
The fine print
The developer and integrator will be renamed Infosys Technologies (Australia) Pty Ltd, the company said. The transaction will be completed in January 2004.
A .NET and J2EE developer, Expert had total revenues of $46.7 million for the fiscal year ended June 30, 2003 and a net profit after tax of $7.0 million.