Tech Reliance to be R-Adag arm for software, IT services

Tech Reliance to be R-Adag arm for software, IT services
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First Published: Tue, Jan 01 2008. 11 51 PM IST

New focus: R-Adag chairman Anil Ambani. (Punit Paranjpe/Mint)
New focus: R-Adag chairman Anil Ambani. (Punit Paranjpe/Mint)
Updated: Tue, Jan 01 2008. 11 51 PM IST
Bangalore: The Reliance Anil Dhirubhai Ambani Group (R-Adag), a conglomerate with interests in telecommunications and power utilities, plans to enter the software consulting and services business by forming a unit named Tech Reliance Ltd, according to three people familiar with the plan.
Tech Reliance aims to have six development centres across India by the end of December, four of which are operational within the group currently at Mumbai, Delhi, Kolkata and Hyderabad, said a senior executive of Reliance Communications Ltd, the group’s flagship. Some 2,000 employees work at these four centres, a workforce the group plans to double by March.
The group, led by billionaire businessman Anil Ambani, has been studying the potential entry into tech services since it decided to set up a business process outsourcing unit in November, said another senior Reliance executive. Both executives didn’t want to be named.
New focus: R-Adag chairman Anil Ambani. (Punit Paranjpe/Mint)
Tech Reliance will begin working with firms within the group—Reliance’s information technology budget alone is an estimated Rs570 crore a year—and will eventually serve both global and domestic customers in telecom, financial services, utilities, entertainment, and health care businesses.
Tech Reliance is in talks with potential clients to offer various consulting and other services, said a person familiar with the start-up’s plans. A core group of 15, which includes some group employees, would take key roles at Tech Reliance, this person said.
Sumit Chowdhury is the chief information officer of Reliance Communications but Mint could not independently confirm if he would be moving to Tech Reliance.
According to research firm IDC India Ltd, the domestic market for tech and back office services will touch Rs110,000 crore in 2008, a growth of 24% over 2007.
Kiran Karnik, president of trade body National Association of Software and Service Companies or Nasscom, says the group does seem to have the expertise required to be an IT consulting and services firm.
“The company has a fast-mover advantage if not the first-mover advantage,” said Karnik who is not privy to Tech Reliance plans.
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First Published: Tue, Jan 01 2008. 11 51 PM IST