SuperValu to launch IT operations in B'lore

SuperValu Services India (SSI), the IT arm of the third largest grocery retail chain in the US "" SuperValu "" is formally launching its Bangalore operations next week by hiring a significant number of professionals.

SSI will commence IT operations with a small headcount of 25 and scale it up to 100 over the next four months. The final headcount targeted is 300 in the coming months to support SuperValu's IT operations in the US. The company plans to invest $50 million over the next five years in India.

"We are excited with our Indian operations since the talent availability is immense. For the first time, SuperValu has ventured out of the US. We are committed to grow the Indian arm. We plan to ramp up our operations in Bangalore," SSI vice- president (IT Special Projects) Tony Jolley told Business Standard.

It is the third retail major to set up IT operations in Bangalore after UK-based Tesco and Target started their captive centres in the city.

SSI is also contemplating expanding beyond Bangalore. "We would like to study the performance of Bangalore operations over the next few months before taking a call on expanding to other cities. If necessary, we may further expand our Bangalore operations," he added.

At present, 1,600 IT professionals work on SuperValu's IT requirements like application development, technical operations, quality assurance, retail and supply chain operations out of three different locations in the US. About 600 of them are contract professionals.

"We intend to shift these contract jobs to India in a gradual manner to reduce dependence on external firms. We want to build our technology base by leveraging the talent in India," he added.

Around 200 IT professionals employed by various Indian IT firms are also developing applications for SuperValu. The SSI has no plans to take over these contracts. "We do not want to disturb contracts handled by our Indian partners. They will continue to remain in place," he pointed out.

SuperValu, with annual revenues close to $44 billion, manages approximately 2,500 retail grocery locations. It operates under 17 different banner names in 48 states in the US. The company has no plans of extending its retail operations outside the US.