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Australian Government - Department of Foreign Affairs and Trade

Advancing the interests of Australia and Australians internationally

Australian Government - Department of Foreign Affairs and Trade

Advancing the interests of Australia and Australians internationally

India New Economy Old Economy

India New Economy Old Economy

Company: LUMLEY TECHNOLOGY
State: NEW SOUTH WALES
Sector: INFORMATION TECHNOLOGY

LUMLEY TECHNOLOGY – DEVELOPING SOFTWARE IN INDIA  

Lumley Technology Limited is an independent Australian subsidiary of the international insurance and financial services group, Lumley Corporation. Lumley Technology offers clients in the insurance funds management and collision and repair industries a comprehensive service supplying leading edge software systems and packages designed to enhance business operations and performance. Established in 1972, its Sydney head office has approximately 120 staff.

Despite having heard of major developments in the Indian IT industry through the mid and late 1990s, Lumley Technology did not seriously consider relocating any programming work there until 1998 when it discovered many major international companies were outsourcing to Indian IT firms. With two small Indian software firms, it decided to bring Indian software engineers to Australia. Although this program was a success in terms of its output and objectives, Lumley Technology found it made minimal cost savings.

Consequently, from early 1999, the company investigated establishing software development operations in India. After some research and discussion with various state governments, Lumley Technology established an office in HI-TEC City in Hyderabad (Andhra Pradesh). Lumley Technology India, a subsidiary of Lumley Technology Australia, was officially opened in March 2000. In addition to an Australian manager, about 49 Indian software engineers, technical writers and support workers staff Lumley Technology India.

Lumley Technology India is now an important part of Lumley Technology’s programming and testing processes in developing new software. As their experience builds, the Australian parent company intends to move more design and development work there.

Lumley Technology concedes that despite the innovative approach the Andhra Pradesh Government took to attract their business, India can be a difficult place to do business. Red tape and official paperwork related to business registration, customs and excise and labour laws abound. Despite this, Lumley Technology remains very positive about its future prospects in India. The company believes its Indian operation offers the opportunity of improving Lumley Technology’s returns and human capital as well as expanding its opportunities to supply products and services to markets in India, East Asia, Europe and the United States. This bodes very well for the future of its Indian operations.

Source: Lumley Technology, 2001.

Department of Foreign Affairs and Trade