Continental AG Plans Global IT Competence Centre in India Partners New Delhi Based Ideafarms for Innovative Value-Added Services

NEW DELHI, Aug. 31, 2006 /Xinhua-PRNewswire/ -- Continental AG, a leading automotive supplier of brake systems, chassis components, vehicle electronics, tires and technical elastomers, today announced plans to set up a Global IT Competence Centre in India with New Delhi based Ideafarms -- a niche IT smart-sourcing firm offering global delivery. The activity will be one of Continental's major initiatives in the subcontinent.

As part of its new sourcing strategy, Continental proposes to reallocate a substantial 25% of its niche IT sourcing spend for such 'best-in-class' facilities.

The India Competence Centre will be designed from a futuristic perspective and is also mandated to shift Continental's routine capacities offshore, in phases, for maximising cost advantage. The move is part of Continental's strategy of sourcing process-oriented niche applications to specialised players.

With the setting up of a Global Competence Centre, India is going to become a strategic node to tap into the network of qualified experts and to access a rapidly growing talent pool. The facility is planned as a single point for providing knowledge-based IT consulting services to Continental AG worldwide and will also be responsible for evaluating and validating technology solutions. In a later phase, the scope will be expanded to include other high-value services in R&D as well as engineering services.

Paul Schwefer, CIO of the Corporation, who is presently in Delhi to announce the initiative with Ideafarms said: "Strategic sourcing is the centrepiece of our business strategy to enable effective use of human capital and optimum utilisation of our resources. Ideafarms' expertise is in collaborating with us in understanding our core business needs and then applying IT and other capabilities to offer customised solutions," Adding further, he said, "When coupled with Ideafarms' flexible global delivery model, it will help us implement processes that maximise value and returns for us."

The project has been 'run-in' by Ideafarms over the last 4 years to build market-ready and flexible capacities that are now ready to scale manifold. The business model operated by Ideafarms has demonstrated thought-led innovation and sharing of risks, thereby providing Continental a different kind of value from what has so far been available through other IT service providers.

"We believe that now is the right time for Continental to scale up operations in India and benefit from the value that Indian professionals can bring to their global sourcing strategy. Our creative, strategic, technology and process expertise, coupled with a flexible and cost-effective global delivery model makes us the ideal sourcing partner," said Sunil Malhotra, President & CEO of Ideafarms.

  For more information, log on to www.conti-online.com .
  For more information, log on to www.ideafarms.com .

  Contact:

   Mr. Sunil Malhotra
   Tel:   +91-9810000766
   Email: sunil.malhotra@ideafarms.com