Sony Europe partially offshores IT development

Sony is handing over the reins of part of its European technology development efforts to Satyam in an offshore outsourcing deal that will allow the company's IT department to focus on other value-added activities.

The move builds on an existing partnership between Sony and Satyam and is expected to reduce costs and help support the former's business growth.

The terms of the deal, such as value and length, have not been disclosed.

Once the new offshore development centre (ODC), which is based in Bangalore and is kitted out for 40 employees initially, springs into action, Sony's entire European operations will benefit from dedicated SAP development and testing and enterprise application integration (EAI) services.

The offshore agreement, signed last week, will ensure that Sony's infrastructure services (IS) team can spend time that would have previously been spent on SAP or EAI-related work on enhancing technology platforms and innovating for the benefit of the business.

Sony also expects to be better positioned to integrate key business processes, increase operational efficiency and ensure greater systems interoperability and information flow.

In partnering with Satyam, Sony is actively working towards some of the aims and objectives outlined by chief executive Howard Stringer in the company's annual report.

"In September 2005, we announced our mid-term corporate strategy, outlining a revitalisation plan that achieved a distinct balance between restructuring initiatives designed to reduce costs, and strategic growth initiatives designed to foster continued innovation," Stringer said.

"..In its simplest form, this new plan attempts to achieve three key objectives: (i) eliminate "silos;" (ii) sharpen our focus; and (iii) create unique and sustainable competitive advantages."