ITC Infotech India Ltd (I3L), a wholly-owned subsidiary of ITC Ltd, has just extended its global sub-contracting arrangement with US-based software products company, Parametric Technologies Corp (PTC ), till July 2008. Originally, the ITC Infotech-PTC sub-contracting deal, which was inked in July 2003, was slated to expire in October 2006.

The $1-billion Parametric’s decision to extend its sub-contracting relationship with ITC Infotech comes in light of a chunky 25% reduction in its annual global services delivery cost, largely on account of its outsourcing arrangement with I3L. Under the terms of extended contract, ITC Infotech will become a fullfledged strategic partner for PTC from being a mere sub-contracting partner. It will progressively play an influential role in the final product lifecycle management (PLM) solutions that PTC offers its global clients. ITC Infotech will support Parametric’s PLM software solutions from its Bangalore-based offshore delivery centre, ITC Infotechpark. For starters, there will be an increase in the range of software solutions it will offer PTC and its global clients. Software solutions from ITC Infotech will largely be built around PTC’s flagship product lifecycle management solution, Windchill, which is akin to an ERP software solution and tailor-made for the global automobile and aerospace industries.

The contract value of ITC Infotech-PTC sub-contracting deal is slated to increase sharply from the present $55 million (Rs 250 crore, approximately), although ITC Infotech officials declined to divulge deal commercials of the revised sub-contracting arrangement. In coming months, engineering services built around the manufacturing vertical will be crucial to ITC Infotech’s future outsourcing strategy. “ITC Infotech expects to become a Tier-I player in the lucrative engineering-based outsourcing space,” said a top ITC Infotech official. According to ITC Infotech managing director Sanjay Verma, “the new sub-contracting contract opens up possibilities for expanding I3L’s scope of engagement with PTC and its global clientele for implementation of value-added services.

Both the companies will also explore arrangements for other auxilliary services like implementation, maintenance, support and migration. ITC Infotech will participate in development of industry-oriented templates for PTC’s product lifecycle management solutions.”