Hexaware Technologies Ltd, the city-based information technology firm, has signed a three-year software contract worth $25 million with Valtech, a France-based e-business consultancy group.
The agreement will see Hexaware establishing a worldwide development centre (WDC) for the $125 million Valtech in India and service Valtech's customers in Europe and the United States.
Hexaware Chairman Atul Nishar said that the WDC will focus on e-business technologies and enterprise application integration and will help Valtech's software development efforts across the world.
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Hexaware CEO, Rusi Brij said WDC was an opportunity for both Valtech and Hexaware to leverage mutual strengths over the long term as the WDC grows in scope and size.
The centre will grow from 100 people to about 250 people by the end of three years and will generate more than 10 per cent of Valtech's revenue as early as 2003.
Valtech is an international e-business consultancy company specialising in new information technologies, especially in middleware and EAI technologies, and the arrangement with Hexaware would support all of Valtech's subsidiaries across the world.
The WDC deal will contribute a minimum of $25 million to Hexaware's topline growth and the possibility of the account size growing was very high, Nishar said.
"While Hexaware will earn close to $25 million in three years, the total value of projects that Valtech will execute with Hexaware is around $60 million," Nishar said.
"This is not a marketing relationship but a relationship where Valtech will do the design and architecture part of a solution and Hexaware will do the implementation" Brij said.
The EAI market has seen a sharp rise, touching $4.8 billion in 2001 and is expected to shoot up to $11 billion by 2006 according to a recent study conducted by the ARC Advisory group.