iSoftStone, Huawei Establish IT Services JV
iSoftStone, 9/04/12
Chinese IT outsourcing and consulting provider iSoftStone (NYSE: ISS) and Chinese telecom equipment and terminal manufacturer Huawei have formed a joint venture to build an IT services provider.
The JV will be 75% owned by iSoftStone and 25% owned by Huawei, with registered capital of RMB 100 million. iSoftStone will appoint the JV's CEO, CFO, and COO. Huawei will appoint the JV's Financial Controller and assign two senior executives to oversee the JV's Huawei related business. The JV will officially start operation in January 2013.
As a key contribution to the JV, Huawei will purchase a significant amount of IT services from the JV in the next three years. Huawei will also provide favorable terms in billing rates, payment terms, and profit allocation. As the JV's majority shareholder, iSoftStone will contribute selected technology and communications businesses into the JV, including iSoftstone's existing Huawei related business but excluding iSoftStone's U.S. businesses and other accounts mutually agreed to by iSoftStone and Huawei.
Keywords: hardware IT outsourcing software telecom Huawei telecom equipment iSoftStone IT services JV ISS HR supply contract
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