Software AG, iGate launch Indian service venture

In a move aimed at bringing new products to market more quickly and cheaply, German middleware software vendor Software AG has teamed with iGate Global Solutions Ltd. to launch and operate a new software development and service centre in India.

The joint venture, to be called Software AG (India) Private Ltd. (SAG India), is slated to begin operation in October with an initial staff of 50 people, Software AG said Tuesday in a statement.

The new venture will focus on developing new applications on top of Software AG’s platforms for mobile computing and content management, while providing support services for projects involving the software engineering team at the German company’s headquarters, according to the statement.

By taking advantage of skilled programmers and lower labour costs in India, Software AG expects the offshore unit to help lower software development costs and speed up the delivery of new products, it said in the statement.

The move into India follows a similar offshore ramp-up by German business software vendor SAP AG. In July, SAP announced plans to double the number of software engineers at its Indian development centre.

Software AG, based in Darmstadt, Germany, will own 51 per cent of SAG India, with iGate Global Solutions holding the rest.

The German vendor develops business software products supporting the Extensible Mark-up Language (XML) standard.

IGate Global Solutions, formerly Mascot Systems Ltd., is based in Bangalore, India. The company, a subsidiary of iGate Corp. in Pittsburgh, Pennsylvania, offers a range of services, such as application development, infrastructure management and consulting. Its products span a number of areas, including customer relationship management (CRM), enterprise relationship management (ERP) and supply chain management (SCM).