Siemens Ltd has announced that Siemens Information Systems Ltd (SISL), its wholly owned IT subsidiary, will be transferred to parent Siemens AG for a consideration of Rs 449 crore.
The new SISL will have a dual mandate- first as a software factory catering to Siemens''s R&D as well as the product development initiatives worldwide and in line with this as an offshore development centre for Siemens IT Solutions and Services group for its external customers.
SISL''s 70% revenues come from the parent company. The company release also said that to leverage India''s cost advantage, the business model had changed from an entrepreneurial model to a factory model. On the top of this, the company attributed the fall in profit margins in the September 2008 fiscal to a change in its business model from an ''entrepreneurial'' to ''factory'' model.
Armin Bruck, MD, Siemens, said, "The realignment of the software business is primarily keeping in mind interest of our shareholders by separating low margin business and focusing on acquiring high margin businesses."
The new SISL will have a dual mandate- first as a software factory catering to Siemens''s R&D as well as the product development initiatives worldwide and in line with this as an offshore development centre for Siemens IT Solutions and Services group for its external customers.
SISL''s 70% revenues come from the parent company. The company release also said that to leverage India''s cost advantage, the business model had changed from an entrepreneurial model to a factory model. On the top of this, the company attributed the fall in profit margins in the September 2008 fiscal to a change in its business model from an ''entrepreneurial'' to ''factory'' model.
Armin Bruck, MD, Siemens, said, "The realignment of the software business is primarily keeping in mind interest of our shareholders by separating low margin business and focusing on acquiring high margin businesses."
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