Date:16/03/2005 URL: http://www.thehindubusinessline.com/2005/03/16/stories/2005031601150500.htm

Back Newell & Budge buys Momentum Tech — To hire 100 professionals every 6 months

Our Bureau

Ms Ann Budge, CEO, Newell & Budge; Mr Kiran Karnik, President, Nasscom; and Mr Mark Runacres, British Deputy High Commissioner, at a press conference in the Capital on Tuesday. — Ramesh Sharma

New Delhi , March 15

BETTING big on India's information technology capabilities, UK-based IT consultancy and services company Newell & Budge today announced the acquisition of IT development firm Momentum Technologies and said it plans to add 100 professionals every six months in the "foreseeable future".

"This acquisition is the next logical step in our offshore strategy. We have been working for over seven years with Indian partners, delivering a number of very large projects in that time. Acquiring Momentum gives us access to a highly technical offshore facility, which fully complements our current UK workforce," Ms Ann Budge, CEO of Newell & Budge, said at a conference here. The company however did not disclose the size of the all-cash deal.

Following the acquisition, Momentum would become a wholly-owned subsidiary of the Newell & Budge Group and would be the company's first offshore development centre.

Acquiring Momentum is part of Newell & Budge's long-term strategy to build on its offshore capabilities and signals an expansion mode for the company in both UK and India. It would give the company's clients direct access to India's high quality technical skills and faster response time, while also offering certain cost advantages, she said.

The UK company believes that this would enhance its market competitiveness and create important differentiators in the marketplace. Momentum currently has a development centre in Noida with 120 professionals and a capacity to accommodate another 80 professionals. "We plan to fill this capacity in the next six months. We are also taking up another building for further expansion, and intend to add 100 people every six months in the foreseeable future," Ms Budge said.

She said that with the acquisition, the company is expected to discontinue its existing partnership with Mastek but will continue its tie-up with RS Software for specific technical skills.

Newell & Budge reported revenues of about $55 million in the year ended October 2004.