As part of its regional onshore and offshore delivery strategy, Fujitsu is ramping up its local software development presence by establishing an Australian Application Solution Centre in Adelaide.
The centre, which is expected to employ 200 people within two years, will provide a low risk onshore delivery alternative for companies seeking to reduce their application development and maintenance costs without sending work overseas.
It will also provide a gateway to Fujitsu's regional offshore facilities in India and the Philippines, ensuring that any offshore work is effectively managed and coordinated through the Adelaide centre.
Fujitsu's executive general manager of enterprise application services, Jean-Pierre Deruddere, said the centre represents a major investment by the company in expanding Australia's local capabilities.
"Recognising that many of our Australian clients would prefer a lower cost domestic solution rather than an offshore strategy for key projects, we have chosen to invest in building up our existing infrastructure in Adelaide into a true centre of excellence for software development, maintenance and support," Deruddere said.
"By focusing additional resources to expand this facility, we will be able to offer higher levels of competency and greater economies of scale to meet our business and government clients' needs for quality application services at a lower price."
Deruddere said Adelaide was selected for its cost advantages, strong heritage in software development and support, substantial pool of skilled talent and ready access to a high quality supply of graduates from the four local universities.
He said the centre will provide services in a range of leading technologies such as J2EE, Oracle and .Net.
The South Australian Government has praised the initiative, with Premier Mike Rann welcoming the opportunities the centre presents for high tech jobs and local skills development.
"An independent study of 28 Australian cities has found Adelaide is the most business-competitive city in the country - beating every other capital city in the nation," Rann said.
"Our favourable costs and IT skills make Adelaide a highly competitive investment destination. We are proud to have the opportunity to partner with Fujitsu not only to keep these jobs in Australia, but also to expand our local skills base."
Deruddere said the centre is a lower risk alternative to offshoring.
"Obviously, some clients for whom costs are a major constraint will continue to send work offshore to India, China and elsewhere," he said.
"However, for others seeking to reduce their costs without increasing their exposure to the risks or governance issues associated with sending work overseas, the Australian Application Solution Centre offers an ideal alternative.
"We are already investigating opportunities to bring back to Australia projects that are currently offshore, but for which this new centre represents a better risk/price performance ratio than the overseas option."