Anil Ambani Floats Tech Reliance For IT Foray; May Invest $2 Billion
Wed, 01/02/2008 - 20:18 — Sahad P VAt least one faction of the Reliance Group has realised IT is an opportunity they missed out on. Anil Ambani's Reliance ADA Group has decided to enter the IT services business by floating a new company - Tech Reliance (does it sound like the IT foray of another major industrial group - Tech Mahindra?).
It plans to provide IT consultancy, business process outsourcing and software development, among other services.
It will initially look at providing services to industry sectors such as telecommunications, financial services, utilities, entertainment and healthcare. The group is reportedly looking at investing $2 billion in the business.
Apparently the company is on the prowl for top management staff from major IT firms in the country, according to a report in Business Standard. Anil Ambani has already hand-picked a core team of 15 members, including employees working within the group, to head the initiative, says the report.
It remains to be seen if Reliance entry can make life tougher to existing biggies like Infosys Technologies, Tata Consultancy Services, and Wipro.
Comments
January 16, 2008
I actually hate Reliance Infocomm for their shoddy support and billing but can't help admiring that they are growing by leaps and bounds. ADAG is aware of the USD 50 Billion projected turnover by Nasscom for software services and hence felt it necessary to foray in this space.
At the least they can bully all their group companies to offload IT services to them which is quite a bit of work considering all of them are growing. Why pay some outsider for all this. By consolidating you can bring in efficiency which equals cost savings.
Their will be a lot of poaching of useful mminds from 'top gun' service companies.
Heck, they are even talking about bailing out the Dhabhol project so their foray into tech should be alright.
BTW, Brother Anil can jog 18+ Km in a good time to qualify him for marathons. Most of us can't, so given his grit and determination for sizes I am sure he will do fine with this company as well.
January 04, 2008
Reliance has a long way to go in one of their first foray into Communications: Reliance Infocomm (RCIL???). Their support is pathetic, and handling IT Business is a mammoth task. The company miserably failed to satisfy the individual users, how can they even think of even competing with TCS, Wipro, Infosys, Satyam, HCL, and even TechMahindra, Polaris, Patni...
They simply have money power, unfortunately, you can not buy everything with money. Like the "Maturity Levels" our IT Companies in India have. It took Infosys formidable 20+ years to become what they are, so is the case for Satyam, TCS, Wipro, and HCL.
TechReliance may be successful if they are to enter hardware or domestic comm/networking related services.
January 03, 2008
Can someone give me Tech Mahindra's HR contact details? I would like to apply asap :)
January 03, 2008
Hi..
I think it is right time to for ADAG group to join this business of IMS.As ADAG is having already good infra and tech manpower it will not be much tough competetion for ADAG.
January 02, 2008
I think he will give tough competition to the existing batch of IT companies. He has the metal to prove himself :). If elder one also joins this foray then it would be a treat to watch their STOCK prices...
February 05, 2008
I feel it's a great decision by ADA group to enter into IT sector. But the success will depend on how Anil Ambani & his core team is planning to position ‘Tech Reliance’ in terms of service-offerings, clientele (sector-wise as well as size-wise) and geography (since US economy is slowing down and a lot of initiatives taking place in Europe and the economy of major emerging markets is growing, a perfect geo-mix is a must).
A determined and dedicated person like Anil Ambani will definitely make it to one of the top Indian IT companies in next 5 years.
Wish you all the best!!!