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Mastek forms JV with Deloitte Consulting

Indian software services firm Mastek Ltd and Deloitte Consulting on Wednesday announced they will form a 50-50 joint venture to provide software services from India to global clients.

The joint venture comes amid a slowdown in the US economy, which has forced firms to cut costs, including getting projects done at cheaper locations like India.

Mastek will provide employees and infrastructure, while Deloitte, one of the world's leading consultancy firms, will bring to the venture its clients, project management skills and industry knowledge, officials said.

"We needed a joint venture with an India-based software services company to fully leverage the value of the offshore model," Raj Joshi, Deloitte's global director for strategic alliances, told a news conference.

The venture will offer services to Deloitte Consulting's clients around the world in financial services, telecoms, manufacturing, consumer business, energy, healthcare and public sector industry sectors.

Ashank Desai, founder, chairman and managing director of Mastek, said the tie-up with a globally acclaimed partner like Deloitte would allow Mastek to acquire skills for higher-value services and help become a global company.

The Mastek group includes the Bombay Stock Exchange-listed Mastek Ltd and several fully owned subsidiaries around the world.

The group posted a net loss of Rs 32.6 million in the quarter ended June 2001 compared with a net profit of Rs 82.4 million a year earlier.

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