NEC expands Asian outsourcing business

NEC is growing its IT managed services and outsourcing business in Asia with a new center that provides outsourcing services, including business continuity, networking and application hosting.

SINGAPORE--NEC is expanding its IT managed services and outsourcing business in Asia with a new center that provides various outsourcing services, including business continuity, networking and application hosting.

Launched this morning, the NEC Managed Services and Outsourcing Center (MSOC) targets organizations that wish to outsource their IT operations, from data centers to IT governance.

To deliver outsourcing services, NEC is also partnering IT consulting firm Abeam Consulting and Pointsec Mobile Technologies, a Swedish company which delivers security software products for mobile devices.

"Based in Singapore, the MSOC will be our vehicle for spearheading NEC's managed services and business process outsourcing expansion in Southeast Asia," said Tomohiro Yagi, chief executive officer of NEC Solutions Asia-Pacific.

The company is optimistic about the market growth of outsourcing, he said, and added that the new center is expected to raise the revenues of NEC Solutions Asia-Pacific by 20 percent, up from S$339 million (US$199.4 million) last year to S$500 million (US$294 million) in 2006.

On the partnership with Abeam, Yagi said the deal will allow NEC to expand its reach in strategic consulting, ERP (enterprise resource planning) and CRM (customer relationship management) package related services. It also allows "both companies to exchange sales leads, and leverage on each other's strengths to collaborate on developing new services."

NEC Solutions has also been appointed, under the new agreement, as a reseller and marketer of Pointsec's products and services in Singapore, Indonesia, Malaysia, Thailand and the Philippines.

David Ng, senior vice-president of NEC Solutions' business services group, said customers can also outsource their data security to the center. He added that the company has policies in place to protect its customers' privacy and intellectual property, a business that is spearheaded by its corporate ethics division in Tokyo.

NEC Solutions, which also operates in Japan, China, North America and Africa, counts several government organizations as its customers. These include the Hong Kong Police, Singapore's Ministry of Defense and Malaysia's Communication and Multimedia Commission. It recently won an outsourcing contract to manage the IT needs of Singapore's National Arts Council, a NEC spokesperson said.

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