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Lucent inks GSM outsourcing deal with Hughes

Posted: 04 Mar 2003 ?? ?Print Version ?Bookmark and Share

Keywords:lucent technologies? hughes software? gsm? communication software? wireless technology?

Lucent Technologies has signed a multi-year deal with Hughes Software Systems Ltd to outsource software development and maintenance of Lucent's GSM-related operations.

Hughes said in a statement that the agreement also calls for setting up "a dedicated development center in Nuremberg, Germany, and expand the HSS center in Bangalore" for completing software development work for Lucent.

However, reports indicated the deal involves all Lucent staff working on GSM projects in Germany and India. About 200 Lucent employees would reportedly move to Hughes facilities to complete the work.

Hughes software is listed on Indian stock exchanges and is led by a local management team. The deal with Lucent underscored a trend involving Indian software companies acquiring overseas companies or their engineering staffs in order to grow faster.

Last September 2002, Wipro Ltd signed a deal to acquire three software centers in Bangalore, Hyderabad, and New Delhi. Engineers working in these centers were initially employed by Ericsson.

For Hughes, the deal with Lucent is worth $30 million over a three-year period, and effectively represents a buyout of Lucent's GSM activities in Germany and India. Hughes, which has 1,800 workers around the world, specializes in communication software and wireless technology. It already has agreements with Motorola in which Motorola bundles Hughes' network and signaling protocol stacks into its packet telephony products.

"We chose [Hughes] after a global search for outsourcing partners," said Roger Levy, VP of GSM research and development at Lucent.

"Working with Lucent enables us to enhance our domain expertise and help develop better solutions for Lucent," said Manoranjan Mohapatra, EVP of Hughes Software Systems.

Hughes Software, based in Gurgaon in northern India, is a subsidiary of Hughes Network Systems.

- K.C. Krishnadas

EE Times

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