ON-LINE Consulting Group has in one swoop become the largest outsourcing group in Asia with an agreement reached yesterday to acquire an Australian outsourcer, System Solutions.
The deal is part of On-Line's overall plan to increase its outsourcing revenues to more than 50 per cent through an aggressive acquisition programme.
The management of data centres and other outsourcing and systems integration services make up 15 per cent of the company's income.
On-Line will take a 60 per cent stake in Systems Solutions, which had apparently looked for an Asian partner as the best vehicle for growth, because its sluggish home market presented limited opportunities.
On-Line Group's marketing manager, Anil Sathianesan, said acquisition was the best way to grow, mainly because it gave the company access to essential skills.
Apart from gaining the more than 25 IBM sites supported by System Solutions, On-Line also gains immediate access to a relatively cheap skill base - skills that are in many cases in chronically short supply in Hong Kong.
Mr Sathianesan said System Solutions had particularly strong skills in IBM mainframe management, and in managing migration plans from mainframe to open systems platforms.
