Orient Networks, Netsol form alliance

BANGALORE: Orient Networks and Network Solutions (Netsol) have announced a large outsourcing relationship and a global strategic partnership that will form the basis of planned future growth for both firms. Addressing growth opportunities in the global information and communications technology (ICT) environment, both companies see this as a vital partnership in delivering enhanced service offerings to the growing regional and global market.

The outsourcing relationship was initiated by Orient Networks to better align organizational capabilities with market efficiencies and position the firm for regional growth. The outsourcing deal is valued at $2 million and transfers a portion of Orient Networks' operational capabilities to Netsol. To accelerate advantages gained from the outsourcing arrangement, the companies have struck the global partnership to build upon each company's core competencies and provide a strong foundation for a longer-term alliance and go-to-market strategies.

Together, Orient Networks and Netsol will offer traditional telecom capacity products as well as enterprise value added services, like network management, security and outsourced messaging. The joint initiative will be launched in September this year and the relationship is expected to produce $65 million over the next 18 months. In July, the companies began collaborative product development activities to support their global partnership.

"This partnership extends our Indian presence and also positions us ideally in the global market. Netsol's calibre and capabilities are well known in the sub-continent and with our strength and coverage in the rest Asia we form a formidable team," said Kim Odhner, Chief Operating Officer, Orient Networks.

Sudhir Sarma, Managing Director, Netsol, commented, "This is a great opportunity that delivers key components of our ICT strategy. The global market for ICT provides a substantial growth opportunity for us, which can significantly benefit both companies' revenues."

Starting this summer, the companies plan to initially target traditional multinational enterprises, plus the Asia regional mid-market, as well as small- and medium-size business (SMB) markets through a combination of service offerings. Subsequently, specific industry markets will be added as conditions and opportunities develop, in order to ultimately provide global solutions capability via the strategic alliance.

The companies are evaluating the development of propositions in segments such as ICT infrastructure, application management, mobility, workplace solutions and contact center services. The approach will include the creation of a common service delivery model that is designed to improve the technical alignment across both companies in order to deliver, both together and separately, seamless ICT services.