PMC Sierra to outsource design work to India

DQW Bureau
New Update


PMC Sierra, a US based supplier of high-perfor-mance ICs, principally used by

equipment manufacturers in the telecommunications in-dustry, will start

outsourcing parts of its chip design process to India by Q2 of 2004.

"We are in the process of evaluating partners for the outsourcing

project. We will begin by outsourcing portions of our work assignments to the

partners and wait till the team begins to mould and work toge-ther, before

sending in more work. The ulti-mate aim will be to set up a dedi-cated design

cen-ter in the country, which we hope will happen in 2005," said Haresh

Patel, VP (Sales), PMC Sierra World Wide.

According to him, the initial team at the out-sourcing partner will be only

around 10, but the dedi-cated design cen-ter, if and when it comes up will have

close to 50. The company is also planning a tech-nical support cen-ter in India,

which will do work akin to a call center as part of its function.


"Right now, most of the call centric work is being handled by our field

applications executives, who routinely answer customer calls. We envision that

this work, which constitutes 25 percent of an individual applica-tion worker’s

daily time, can be done out of India. This will be supplanted by a staff that

helps in actual technical support as well," said Patel.

The company will be setting up its technical support office in the country,

sometime in 2004 with an initial strength of three people. PMC has a sales

presence in India through two distributors–Corel CG and Unique Memec, with a

sales team of close to 10 people and around 45 customers.

"APAC is where our growth exists, because of the booming telecom market.

Right now, it contributes 34 percent of our revenue, but we expect it to grow to

50 percent in three years time. India, though at present, a small market holds

quite a bit of potential for the future. We expect India to chalk more than $ 1

million in sales this financial year," said Patel.

According to him, the vertical segments of communications, storage and high

volume and velocity enterprise consumption will comprise equal shares of PMC

revenues in the future as opposed to the past, when communication was the big-gest

contributor. The organiza-tion declined to reveal exact figures of investment

for the country.

Sathya Mithra Ashok

Bangalore (CyberMedia News Service)