Infosys Technologies nets $10-mn Intel pilot project

Intel, the world’s biggest chipmaker, has awarded a pilot outsourcing contract to Infosys Technologies worth $10 million currently,
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which could evolve into a $100-million engagement for India’s second biggest software
exporter that is seeking to grow its revenues from customers such as BP (British Petroleum ), Intel and Telstra.

“Infosys has been working on this account for more than a year, while it is a small deal now — it surely can evolve into a much bigger engagement,” said a New York-based person familiar with the contract. He requested anonymity because he is not authorised to speak to the media about this transaction.

Intel is not alone in pursuing outsourcing contracts with Indian offshore companies. In April this year, world’s biggest software firm Microsoft announced a five-year, $170-million outsourcing contract with HCL Technologies for supporting its online services business
. Large technology companies including Intel and Cisco are under tremendous pressure to reduce operational costs, and outsourcing of non-core activities can result up to 20-30 % savings.