IFS wants bigger piece of India's ERP pie

After a two-year partnership with a distributor in India, midmarket ERP vendor IFS has gained full ownership of its Indian operations to sharpen its focus on the rising Asian market.

After setting up a joint-venture company with India's Escosoft Technologies in January 2003, the Swedish business applications maker last month acquired all remaining shares from its partner to establish wholly owned subsidiary, IFS Solutions India.

Mark Rabjohns, president of IFS Asia-Pacific, said the decision is timely as demand for ERP (enterprise resource planning) applications in India is growing. According to research firm Gartner, ERP license revenues in India is projected to grow at a compound annual growth rate of 12 percent through to 2008, faster than the Asia-Pacific region's estimated 8 percent growth rate.

Elaborating on the company's plans, Rabjohns told ZDNet Asia: "With IFS acquiring 100 percent of the shares, we will be investing in growing our presence in the Indian domestic market, as well as building a competency center of IFS-skilled consultants who will be deployed on overseas projects."

With over 100 staff currently in India, the company intends to add to the headcount, Rabjohns said. "IFS India will require an additional 50 to 100 resources over the course of the next 12 months," he said. "These are primarily application consultants and technical consultants who will be involved in project implementation and customization."
Rabjohns said the company will work on both a direct and indirect sales model. "IFS is now (selling) fully direct (to customers) in India, but we will also work with partners in selected industries," he said. For example, IFS will work with BAE HAL (Hindstan Aeronautics Ltd) in the defense sector.

IFS' Indian customer list includes Guru Nanak Auto Enterprises, YKK India, TexCorp, Modern Insulators and Escorts Agri Machinery.
India currently contributes less than 10 percent to IFS' Asia-Pacific revenues. "This should grow to 30 percent contribution over the next two years," Rabjohns said.
IFS' announcement follows similar plans from competitors, namely Oracle and SAP, to beef up their investments in India.