Source: EconomicTimes
Date: Feb 10th, 2008
The 30-billion-euro Deutsche Bank is said to be in talks with Karnataka government to acquire 100 acres of prime land in Mangalore to set up its world’s largest IT infrastructure support facility.The proposed facility will comprise the bank’s largest data centre, disaster recovery centre, global network support centre and back-end support centre, and is expected to support Deutsche Bank’s global operations and branch networks spread across 76 countries, said state government sources.
“Deutsche Bank has plans to set up a state-of-the art technology facility that will drive its global businesses in Karnataka. Top bank officials have approached us and we have shown them prime industrial land in Mangalore. We are ready with formalities and we will help the global bank with all clearances,” said the source.
“The bank officials have already visited Mangalore and are happy with the chunk of land shown to them,” the source added. Although Deutsche Bank is keen to finalise this deal in Karnataka, it is also exploring similar deals in other states.
Deutsche Bank sources said the bank has earmarked Rs 500 crore towards buying land in India, but refused to divulge details on the purpose of the land acquisition.
Deutsche Bank employs around 80,000 people globally and operates close to 2,000 branches across 76 geographies. In 2007, the bank hired around 10,000 people. Of them, 1,400 were in Germany while Asia alone accounted for 40%.
Besides, the bank is believed to be doubling its headcount of 5,000 in the next two years. Deutsche Bank has 10 branches in India and its balance sheet size is over $4.2 billion.
The captive scenario is hotting up in India. The country has around 800 captives of which 600 are in the R&D space while the rest are BPO captives focused on banking, insurance or retail like Goldman Sachs, Tesco and Bank of America.
“The dynamics for captives is changing in India. Recession in the global markets is making the country more attractive in terms of scalability, productivity and talent availability.
Also, MNCs are willing to offer more ownership and controls to heads of their captives centres back in India. The situation was quite stiff-necked earlier,” said Pari Natarajan, CEO, Xinnov Management Consulting, an offshoring advisory firm.
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