BANGALORE: Korean electronics major LG's IT services group, LG CNS Global has announced the launch of its Bangalore operations. The Indian development center would be a 100 percent subsidiary, which would work on IT projects involving IT outsourcing, end-to-end network integration and system integration, consulting and BPO.

The company has made an initial investment of $two million and currently employs 130 employees. "The headcount would be ramped up to 800 by 2009," said Paul Jeong, CEO, LG CNS Global. The center plans to touch revenues of $30 million in five years. The company estimates around 25 percent of the revenues to come from LG Electronics projects.

Announcing the launch of operations, BC Jung, president and CEO, LG CNS, said, " We want to provide the best software engineering capabilities to our customers in the US, Europe and Korea. India was a logical choice for us to set up a strategic center given its unbeatable talent pool and latest technology."

The Indian center would work on projects involving software products (product re-engineering), solution based services for the overseas market and would look at verticals like manufacturing, healthcare, retail and transportation. Part of the team that works at LGSI would be merged with the LG CNS team, informed Jeong. He added that the cost advantage in India is five times less compared to Korea.

At present the $1.4 billion LG CNS group, has eight global subsidiaries across countries like Korea, China, USA and Europe. The company has a CAGR of 34 percent and was on the list of top 10 IT service providers, according to a Gartner report.