AMD outsources IT services to India

BANGALORE, INDIA – Advanced Micro Devices (AMD) is outsourcing most of its IT infrastructure management, including maintenance and support of global IT applications, to HCL Technologies Ltd. in Noida near Delhi. The services will be delivered from HCL Technologies’ facilities in India.

Following a transition period, the distribution of work will be about 70 percent offshore in India, and 30 percent on-site to help ensure 24/7 availability of AMD’s IT operations. The “co-sourcing” arrangement will be guided by a program management team consisting of representatives from both AMD and HCL.

“As part of AMD’s overall strategy to build a more variable cost structure and enable greater operational and financial flexibility, we are building strategic relationships with quality ‘complementors’ that allow our internal resources to focus on the issues and programs of highest priority and strategic importance for AMD,” said Ajay Marathe, vice president for business process transformation at the Sunnyvale, California-based chip vendor.

“IT applications and infrastructure management constitute an enormous opportunity for the Indian IT services industry due to the huge untapped potential,” according to Vineet Nayar, executive vice president of HCL Technologies.

“Given the increasing cost pressures, the focus today has shifted from IT investment to IT operations management,” added Nayar. “Collaborative co-sourcing has thus become an innovative alternative for companies seeking to enhance the efficiency of their business processes.”