Indian information technology services company HCL Technologies on Monday announced plans to set up a subsidiary company in Indonesia, saying it estimated the annual market in the country for its services was about $200 million.
A subsidiary of HCL, one of India’s leading IT companies, HCL Technologies specializes in providing outsourced services, including engineering and research and development, remote infrastructure management and software-led IT solutions.
Virender Aggarwal, HCL Technologies executive vice president, said the company currently provided IT services for several global companies with operations in Indonesia, but that it was looking to tap the local Indonesian market. “We are trying to get more Indonesian clients,” he said.
Aggarwal said HCL Technologies hoped the subsidiary would be set up in three to four months time. He declined to say how much money was being invested in Indonesia but said that it planned to hire 50 to 100 local staff members later this year or early next year.
Manish Sharma, HCL Technologies head for Southeast Asia, said Indonesia’s impressive economic growth had created opportunities in the IT services sector with booming technology spending. “We have aggressive plans in the medium to long term to tap this opportunity as part of our booming Asean business,” he said.
Manish said HCL Technologies would focus on the financial services sector, although it was also targeting the government and telecommunications sectors. “We see an annual market of at least $200 million,” he said.
Aggarwal said HCL Technologies would partner with Indonesian company PT Multipolar in the financial services sector. Multipolar is affiliated with the Lippo Group, which is affiliated with the Jakarta Globe’s publisher.
Partnering with a local company is crucial, Aggarwal said. “Multipolar has experience in the sector and already has a [business] network,” he said.
With revenue of $2.6 billion for the year to March 31, HCL Technologies is one of the five biggest IT services providers in India in terms of revenue.
It built the software for Boeing’s Dreamliner aircraft and on Monday announced it had won a $110 million contract to provide outsourced IT infrastructure to the Singapore stock exchange.