SUPERVALU SETS UP IT OPERATIONS IN INDIA

The company would have 40-50 percent cost advantage by setting up its IT operations here

SUPERVALU Inc, a $44 billion US-based leading grocery retail channel, has set up its first overseas IT operation here to develop software products and solutions for its internal use, business partners and prospective customers in the vertical.

With an investment of $50 million over the next five years, SUPERVALU Services India (SSI) will employ about 300 techies in 12-18 months to support the strategic initiatives of the third largest grocery retail chain in the US.

As its only IT subsidiary outside the US, SUPERVALU India will work on about 400 projects involving development of software applications and end-to-end solutions in retail operations, spanning supply chain management, procurement logistics and accounting.

"SUPERVALU India will leverage the talent pool available in India's silicon hub for software development and complement our IT operations back home; carried out by 1,800 techies spread across three centres - Minnesota, Idaho and Utah," SUPERVALU Chairperson Paul Singer said.

The company will continue to outsource its IT requirements from third-party vendors such as TCS, IBM and Wipro. It spends about $500 million in its IT operations annually.

Singer admitted the company would have 40-50 percent cost advantage by setting up its IT operations in the subcontinent.

As a Fortune 50 firm, the NYSE-listed SUPERVALU has about 2,500 retail outlets across the US and provides distribution-cum-logistics support services to over 5,000 grocery end-points.

The company workforce and revenues more than doubled last year following the acquisition of Albertsons Inc, a leading retail chain in the US, for $20.5 billion.

"SUPERVALU India will also support our corporate IT functions, including retail and supply chain. The team will build expertise in Java and other cutting-edge development tools to undertake quality assurance and testing," Singer said.

The company is in talks with a leading Indian university to provide career opportunities to graduating students in the retail vertical. Besides online programmes, offline courses will be offered for an advance degree in retail operations.

"We will also explore opportunities to hard sell our IT solutions and expertise to the growing Indian retail sector," Singer added.

The company plans to explore BPO services for its US operations at a later date.