Easwaradas Satyan
BANGKOK: JD Edwards, the $ 1 billion Denver based ERP vendor has announced
its plans to set up direct Indian operations starting January 2002. With an
initial investment of $ 10 million in infrastructure and people, the company
plans to set up a team of at least 20 people handling sales, marketing,
consulting, and tech support functions.
The company is eyeing strong presence in the mid-market ERP segment and aims to
secure a clear No 2 position in the Indian ERP market by mid-2003 with a market
share of over 25 per cent. A dedicated development center and a remote customer
response center is also being planned for the next year to complete its full
spectrum of services to support the market.
JD Edwards is currently in the process of identifying and signing up new
business partners amongst SI’s and consulting companies to extend its reach in
the market and develop specific industry competencies. The partnerships are
likely to be announced at the formal launch of Indian operations in January. The
Indian operations would be based in Mumbai. Currently, JD Edwards has a strong
presence in the country with key installations like HPCL, RBI, Foseco, with the
market being primarily developed by Systime Computer Systems, a long-time
business partner.
The plan to have a direct presence in India is a fallout of the restructuring
of the international operations. Richard Mathews, Sr-VP-International would be
heading the international operations that cover all areas except Canada and the
Americas. To provide more focus and thrust to the Asian market, Japan and Asia
have been separated into two regions. Studies from McKinsey, AMR,and IDC
revealed that the ERP market opportunity in international market would grow from
45 per cent in 2001 to 69 per cent in 2005.
The market opportunity itself would grow from $ 25 billion in 2001 to $ 60
billion in 2005. The restructuring is to help the company position itself
stronger to address the growing international market for mid-market ERP. The
study also revealed India to be one of the prime growth spots for mid-market ERP
over the next four years.