JD Edwards, the $ 1 billion Denver, CO-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 percent.
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, Senior Vice President-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 percent in 2001 to 69 percent 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 4 years.
(CNS)