NIIT Technologies Ltd. said today that they will jointly offer IT and business process outsourcing services in North America.
"NIIT Technologies was selected as the preferred partner following a rigorous selection process. This partnership will significantly reduce our costs of operations and services, while improving the level of services required to meeting our objectives in the future," said Steve Stone, Senior Vice President and Chief Financial Officer of Newspapers and Shared Services at Morris Communications.
NIIT Technologies will have a controlling interest in the joint venture and both companies will jointly invest $85 million in the new venture over a period of five years.
Under the terms of the agreement Morris will transfer to the joint venture its key assets including IT infrastructure, people and application landscape.
"We are pleased to partner with Morris Communications, a significant player and a strong voice in the media industry. This is a strategic transformational deal which enhances our onshore presence to expand its footprint in the U.S. market," said Lalit Dhingra, president of NIIT Technologies.
Morris Communications' holdings include 13 daily newspapers, numerous nondaily and free community papers, 33 radio stations and two radio networks, two book publishing and distribution houses, numerous magazines and specialized publications, and more than 100 visitor publications.
NIIT offers application development and maintenance, managed services and business process outsourcing to organizations in financial services, travel, transportation, manufacturing and government sectors in North America, Europe, Asia and Australia.