BT plans JV for virtual network

Global telecom major British Telecom (BT) is mulling a joint venture with Indian companies to foray into virtual private network (VPN) services in the country.

The group is also planning a 150 per cent increase in offshoring business in the country, which will increase its revenues to $250 million(currently from $100 million).

For the VPN initiatives, the company plans to set up a JV in which it will hold a 74 per cent stake, with the operations slated to commence in the next six months. BT is in the process of "getting necessary regulatory clearances," BT CEO (Global Sevices) Andy Green told reporters here today.

A VPN is a private communications network that is used within a company, or by several different companies, to communicate confidentially over a publicly accessible network.

Green, however, did not reveal the size of the investments planned for India, but said it would be substantial.

The company, getting aggressive and venturing into new sectors, plans a 150 per cent increase in revenues.

"At present, the company's revenues from India stands at around $100 million and we are planning to grow this to $250 million in the next three year period," he said.

The company will also look at increasing its employee strength by around 50 per cent. BT has a wholly-owned subsidiary in India and employs over 12,000 personnel.

On the outsourcing front, he said the company was planning to concentrate on big corporate firms. BT Group would be supporting several BPO firms in India and would move some jobs to the country as its business grows in the Indian market.

The company is also planning to set up a research centre in India with a $10 million investment.