Tuesday, December 20, 2005

Indian IT - new directions, Wipro

Wipro has acquired an Austrian semiconductor design firm for about 56 million USD. (from Business Standard)

...This is Wipro’s fifth acquisition and the second largest in terms of deal size after Spectramind...

...NewLogic’s estimated 2005 revenue is close to $20 million and the company employs 120 professionals. This acquisition will strengthen Wipro’s ability to provide semiconductor IP cores and complete system-on-chip solutions with digital and analog mixed-signal RF design services.

The acquisition also provides Wipro with access to 25 patent filings and over 20 customers such as Philips, Agere and Infineon in the product engineering domain.

The key element which this acquisition brings to Wipro is a royalty-based business model. So far, Wipro, in research and development services, has been banking on the licensing model which involves support services to customers...

and interestingly,

...Hans-Peter Metzler, CEO of NewLogic, will head the new business unit and focus on meeting growing customer needs for innovative SoC solutions...

What does NewLogic do? From their website...

NewLogic Technologies is a leading global semiconductor design service provider and supplier of system intellectual property (IP) cores for complex wireless applications such as WLAN and Bluetooth.

NewLogic's portfolio of IP cores includes silicon proven digital MACs and modems and complete radio transceivers. We have a team of about 120 engineers and provide digital, mixed-signal and analog/RF design services including system level design, specification, layout, verification and test.

Very interesting acquisition this.

The juggernauts of Indian IT; Infosys, Wipro and TCS are all taking steps, slightly different from each other (which is good) towards being bigger yet nimble players in various pockets of the large IT world. TCS, at this time, seems headed towards a process-product-service model. Wipro, on the other hand, prefers a string-of-pearls strategy of acquiring small and medium firms rather than a big bang acquisition (courtesy ET).

This blog tracks Indian IT with passion. It is one industry that is now on the fringes of greatness, holds great potential. How much of it will be realised only time will tell.

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