Continental AG plans Global IT centre in India

Continental proposes to reallocate a substantial 25% of its niche IT sourcing spend for such ?best-in-class? facilities.

india Updated: Sep 05, 2006 18:30 IST
New Delhi
New Delhi

Continental AG, a leading automotive supplier of brake systems, chassis components, vehicle electronics, tires and technical elastomers, announced plans to set up a Global IT Competence Centre in India with New Delhi based Ideafarms – a niche IT smart-sourcing firm offering global delivery.

The activity will be one of Continental’s major initiatives in the subcontinent.

As part of its new sourcing strategy, Continental proposes to reallocate a substantial 25% of its niche IT sourcing spend for such ‘best-in-class’ facilities.

The India Competence Centre will be designed from a futuristic perspective and is also mandated to shift Continental’s routine capacities offshore, in phases, for maximising cost advantage. The move is part of Continental’s strategy of sourcing process-oriented niche applications to specialised players.

With the setting up of a Global Competence Centre, India is going to become a strategic node to tap into the network of qualified experts and to access a rapidly growing talent pool. The facility is planned as a single point for providing knowledge-based IT consulting services to Continental AG worldwide and will also be responsible for evaluating and validating technology solutions. In a later phase, the scope will be expanded to include other high-value services in R&D as well as engineering services.

Paul Schwefer, CIO of the Corporation, who is presently in Delhi to announce the initiative with Ideafarms said: "Strategic sourcing is the centrepiece of our business strategy to enable effective use of human capital and optimum utilisation of our resources. Ideafarms’ expertise is in collaborating with us in understanding our core business needs and then applying IT and other capabilities to offer customised solutions," Adding further, he said "When coupled with Ideafarms’ flexible global delivery model, it will help us implement processes that maximise value and returns for us."

First Published: Sep 05, 2006 18:30 IST