LG CNS, South Korea's largest IT service provider, on Tuesday launched a 100 per cent subsidiary in India -- LG CNS Global -- in Bangalore seeking to leverage the cost advantage.
LG CNS Global is starting off with 130 people with plans to ramp up the workforce to 800-plus by 2009, its CEO Paul Jeong told a news conference. It was aiming to touch revenues of $30 million within five years, he added.
LG CNS Global is a 100 per cent subsidiary of LG CNS, the $1.4 billion IT service company of the LG Group. Jeong said an initial investment of $2 million was being made in the Indian subsidiary.
President and CEO of LG CNS, B C Jung, said the Indian subsidiary was chartered to be an engineering centre of excellence that would offer specialised services for enterprise companies outside the LG Group's portfolio.
Jeong said the subsidiary would initially focus on the US, European and Korean markets. He said some of the IT service work for LG Group done overseas was being shifted to the Indian subsidiary.
In the first phase of its operations, LG CNS Global would provide product reengineering, system integration, application development, system management and enterprise focus services for overseas customers.Jeong said the subsidiary was seeking to leverage high quality, highly skilled, cost-effective and English-speaking IT professionals in India. Salaries in Korea were five times that of India, he pointed out.