California-based company recognizes merits of outsourcing.

Vancouver, BC, February 19, 2004—Momentum Technologies, a global provider of outsourced software development services, announced today that it has signed an agreement to set up an Offshore Development Center for a California-based business and IT consultancy beginning in March 2004.

The client, a leading provider of business and IT consulting services nationwide to public sector entities, private companies and the Fortune 500, specializes in managing the full life cycle deployment of IT solutions, creating next-generation IT competitive advantages, and leading transformational business initiatives.

Momentum’s commitment towards processes reflected by its Software Engineering Institute CMM Level 5 assessed Global Development Center in India as well as their flexible business model offering, were key factors in winning the deal. Momentum will establish a dedicated offshore development center for this client. “This center will operate from our development center in India. We expect the client will realize cost-savings and increased productivity and we’ll ensure that our high level of standards and processes are implemented to their benefit,” noted Pankaj Agarwal, CEO & Founder of Momentum Technologies.

Momentum is one of very few offshore software services companies with a strong West Coast presence in North America and a complete focus on enterprise software product companies.? Momentum has been successful in setting up dedicated offshore centers for US-based clients developing enterprise products and these clients have experienced the benefits of offshore outsourcing as a result of working with Momentum.

According to a study published by IDC in November 2003 "...the offshore component in delivery of US IT services may rise by as mush as 23% by 2007, up 5% from 2003.” Among the most popular nations for outsourcing is India, which is recording double-digit growth in revenues from IT services, which are expected to reach $57 billion in 2008, according to a joint study by McKinsey & Co. and India’s National Association of Software & Service Companies (NASSCOM). With virtually every major US corporation offshoring operations to India, corporate America has been able to boost its productivity and innovation by tapping into India's best and brightest at relatively low cost.

About Momentum

Momentum Technologies, Inc. specializes in Information Technology consulting focused on providing top quality offshore software services to companies who incorporate outsourcing as a key component of their business strategy.? With Momentum’s local presence and offshore software development acumen, clients benefit from a cost savings in excess of 25% process driven development and reduced time-to-market. Founded in 1999 and privately held with CitiGroup as strategic investor, Momentum has offices in the USA, Canada and India with headquarters in Vancouver, BC and 130 employees worldwide.

For further information, please contact:
Farah Jinha, Principal
TechKnow Communications Inc.
Tel. (604) 980-2448

Email: farrah@techknow.ca