Kanbay builds up Indian capability

To satisfy Australia's demand for outsourcing and ecommerce services, systems integrator Kanbay is adding 200 staff to its software development and support centre in India.

US-based Kanbay entered the Australian market last October through the acquisition of Australian distributor Megatec. "Our growth is driven by growth in the ecommerce market. According to IDC, the ecommerce market is expected to grow to $151 billion by 2003," said Dileep Nath, Kanbay's managing director.

Kanbay is not alone: the recent announcements of Australian software companies Technology One and xIBA I_Business Architects partnering with Indian consulting firms Kale Consulting and Infosys, respectively, reflects a growing trend in IT companies looking to India for IT-skilled manpower. IBM Global Services, Sun Microsystems and Motorola have also set up development centres in India in recent years.

Renamed E-Solutions Centre in mid 1999 to reflect the focus of its operation, Kanbay's software development and support centre in India provides 24 x 7 "remote site" support to its offices and clients worldwide.

Kanbay uses a global delivery network, called GlobalLink, to provide its clients access to resources worldwide, especially systems development and support skills. For example, Megatec's clients in Singapore have access to development and support skills in India, Australia and the US that are not available in Singapore due to the IT skills shortage, said Mike Moran, Megatec's regional director for Asia-Pacific.

"Since our merger with Kanbay, we have spent time gaining an understanding of GlobalLink's capabilities and articulating that to our customers in Australia and Asia. These efforts have resulted in three projects: a business intelligence and database management project, an ebusiness portal development project and a software development project," Moran said.

Kanbay expects to list on Nasdaq in the fourth quarter. When it does, its Australian subsidiary, Megatec, may take on its parent company's name to reflect the consolidation of Kanbay's operations in the Asia-Pacific. However, the name change has not been confirmed yet, Moran emphasised.

Kanbay's forecast revenue for 2000 is $73 million. Its 1999 revenue was $43 million.

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