Global News - Seoul Office

Welcome to the first issue of Global News published by the Fairfax County Economic Development Authority (FCEDA).

Fairfax County, in northern Virginia just outside Washington, DC, is one of the premier business locations in the world, providing for international businesses the environment needed to grow and succeed.

The FCEDA promotes Fairfax County as a business location and has an outreach programme that spans the globe. In addition to the International Marketing Division based in Fairfax County, the FCEDA has offices in Bangalore, London, Los Angeles, Munich, Seoul and Tel Aviv to offer full assistance to companies interested in setting up operations on the east coast of the US.

The FCEDA assists international companies that are interested in expanding or relocating their operations to Fairfax County by providing a wide array of free and confidential services and information specifically targeted towards foreign-owned firms.

More than 360 firms from 40 countries are doing business in Fairfax County, and this newsletter will tell you about some of their activities and the work of other companies also in Fairfax County.  

Here is a selection of news from our overseas offices. Please feel free to contact any of our offices to let us know what you think of the newsletter or if you would like to learn more about Fairfax County or the services of the FCEDA.

Gerald L. Gordon, Ph.D.
President and CEO
Fairfax County Economic Development Authority

FROM OUR SEOUL OFFICE

FCEDA Exhibition Booth and Seminar at the World IT Show

Fairfax County exhibited at the World IT Show, one of the biggest International IT exhibitions and conferences, which were held at the COEX Convention Centre in Seoul 11th-14th May. More than 100,000 visitors attended the exhibition.

At the show, the FCEDA and Korea International Trade Association (KITA) hosted a business seminar on the 12th. The seminar was sponsored by Fairfax County-based Science Application International Corporation (SAIC), a Fortune 500 scientific, engineering and technology applications company, InteliSystems, a Fairfax County-based business consulting firm, and the law firm of Lohrman and Rim PC, also based in Fairfax County. 

The FCEDA will also present the business environment of Fairfax County.

One-on-One Meetings with Korean Technology Companies

The Korea Chamber of Commerce & Industry (KCCI) and the Association of American States Office in Korea, of which Fairfax County is a member, organised an event to facilitate one-on-one meetings between members of KCCI and ASOK on 14th April. 

ASOK participants including Fairfax County presented business environments and services of their localities to Korean technology companies interested in exploring U.S. opportunities.  About 100 KCCI-member companies participated in the one-on-one meetings.

FCEDA Exhibition Booth at the FTA Expo

South Korea recently signed free-trade agreements (FTAs) with 45 countries and is currently in negotiations with 12 others. 
To express the Korean government's commitment and interest on the FTAs, the Korean Ministry of Strategy and Finance organised the FTA Expo 2nd-4th March. 

The Expo also provided a forum to provide information on FTA signatories' markets and trade sectors to Korean importers/exporters interested in discovering new trade partners and investment destinations.

The FCEDA managed a booth and promoted Fairfax County as a good location for Korean technology companies to expand their business to the U.S. market. 

During the three-day event, about 100 companies visited the FCEDA booth and about 30 companies showed additional interest in learning about business opportunities in the U.S. and advantages of doing business in Fairfax County.

FROM OUR BANGALORE OFFICE

HCL Tech Renews Contract with State Of Virginia

HCL Technologies has renewed its contract with the state of Virginia, as more government departments seek to lower costs. Government sector contracts are being outsourced to Indian IT firms as more US states look to gain greater efficiencies and reduce costs.

"IT services firms could see a significant increase in business as government agencies look to IT services providers to help them gain efficiencies. The federal budget proposal focuses on three major initiatives, including modernising legacy systems and applications; streamlining or consolidating data centre operations; and adopting new infrastructure technologies including cloud computing and virtualisation," said Shami Khorana, president, Americas, HCL Technologies.
 

Wipro Technologies buys SAIC Oil and Gas IT unit

Wipro Technologies, the IT business of Wipro, an IT, consulting and outsourcing company, recently announced that it has signed an agreement to acquire the global oil and gas information technology practice of the commercial business services business unit of Fairfax County-based Science Applications International Corporation (SAIC) for an all-cash consideration of about $150 million.

As a result of the transaction, about 1,450 employees are expected to transition to Wipro in North America, Europe, India and the Middle East.

"The acquisition of SAIC's Global Oil & Gas Information Technology practice will strengthen Wipro's existing Energy business unit in becoming a long term strategic partner in our customer's transformation journey," said Anand Padmanabhan, a senior vice present, at Wipro Technologies. He believes that SAIC's domain consultancy and competencies enhances Wipro's capabilities in the Upstream Oil and Gas space.
 

Genpact Buys Fairfax County-based Consultancy Headstrong

Outsourcing giant Genpact said it will acquire Fairfax County-based consulting and IT services firm Headstrong Corporation for $550 million.

"Headstrong is a complementary high-growth business, built by talented leaders, and that makes the acquisition an excellent fit strategically, financially, operationally and culturally. With this acquisition, we are gaining critical domain and technology expertise in the complex, but highly attractive, capital markets industry vertical," Genpact President and CEO Pramod Bhasin said.

This expertise - combined with capabilities in business process management (BPM) and Smart Decision Services that encompass analytics and re-engineering - will create a uniquely powerful value proposition for clients, he added. Headstrong counts nine of the world's top 10 investment banks and three of the top five asset managers as clients.

Northrop Grumman, Pipavav Shipyard Sign MOU

US defence major Northrop Grumman, which is moving its headquarters to Fairfax County this summer, and Gujarat based Pipavav Shipyard signed a Memorandum of Understanding to co-operate and leverage each others' strengths while building capabilities for mutual security interests between the US and India.

"This Memorandum of Understanding represents the first step in exploring potential business relationships between Northrop Grumman's Electronic Systems sector and the Pipavav Shipyard in India resulting from synergies in technology, experience, and capabilities for the mutual security interests of the United States and India," said a statement from the companies.

FROM OUR TEL AVIV OFFICE

Elbit Systems of America Wins Contract to Develop New Head-up Displays for the C-17

Elbit Systems of America, the American subsidiary of Israeli NASDAQ traded Elbit Systems and a growing employer in Fairfax County, has been awarded a contract for the development of the C-17 Replacement Head-up Display for the United States Air Force. The C-17 is one of the world's most advanced airlift aircrafts.

The contract which contains options for recurring production, depot support and repairs, serves as another bolt in the strong defence technology relationship between the US and Israel.

Elbit Systems of America, President and CEO, Raanan Horowitz said: "We at Elbit Systems of America are proud to have been selected to incorporate our leading HUD technology into the world's most advanced airlift aircraft. The selection by Boeing is a testimony to our world class capabilities and dedication to supporting those who contribute daily to the safety and security of the United States."

Corning Buys Israel-born Wireless Company MobileAccess

Corning Inc, the world leader in specialty glass and ceramics, has announced that it has signed an agreement to acquire the Israeli Fairfax-based provider of wireless coverage solutions MobileAccess.
With the acquisition, Corning establishes its footprint in Fairfax County while it expands Corning's product offering to its worldwide customers.
 
"We are very excited about the opportunity to expand Corning's presence in the rapidly growing DAS wireless segment," said Clark S. Kinlin, President and CEO of Corning Cable Systems. "MobileAccess has a proven history of delivering customer-driven innovative solutions with superior customer service. We look forward to building a bright future in wireless networks when the talented team from MobileAccess joins us."

Gilat Satellite Networks to Acquire RaySat Antenna Systems

Gilat Satellite Networks, an Israeli company based in Fairfax County, recently announced that it will acquire RaySat Antenna Systems, another Israeli Fairfax based company for $25 million.

"We believe that this partnership will lead to a new level of high-speed, highly mobile communications for the military, emergency response organisations and other markets with a need for fast, flexible, on-the-move communications," Gilat Chairman and CEO Amiram Levinberg said in a statement.

He added: "We look forward to addressing new opportunities with RaySat in the government and military markets. We also look forward to broadening our scope in these markets by investing in additional opportunities as they arise."

FROM OUR LONDON OFFICE

Autonomy to Buy Assets of Iron Mountain

Software developer Autonomy Corporation plc, which is based in Cambridge and San Francisco and has offices in Fairfax County, announced it intends to acquire some of the assets of records-management firm Iron Mountain Incorporated. Autonomy wants to buy Iron Mountain's online backup and recovery, digital archiving and eDiscovery solutions for $380 million in cash.

"Autonomy is a global leader in infrastructure software for the enterprise, assuring that our customers will be well-serviced and our employees will have greater opportunities,´ said Iron Mountain Executive Chairman and CEO Richard Reese. "This was the right transaction at the right time for our customers, our employees and our shareholders."

Ireland's Daon to Provide Identity Assurance Software

Daon, which is based in Ireland and has run US operations out of Fairfax County, secured a subcontract from CACI International, which has major operations in Fairfax County, to provide identity assurance software for the firm's Virtual Interactive Processing System, or "VIPS," for the US Military Entrance Processing Command.

Daon is a leading provider of award-winning biometric identity assurance software products and services focused on meeting the needs of governments and large commercial organisations worldwide. Daon supports customers and system integrators in building enterprise solutions requiring the highest level of security, performance, scalability, reliability and privacy.

"Daon is proud to continue its support for the CACI team in serving the US Military Entrance Processing Command's Virtual Interactive Processing System," said CEO Tom Grissen.

BAE Systems to run U.S. Army Weapons Depot in Virginia

BAE Systems, the North American unit of UK-based BAE Systems PLC and one of Fairfax County's largest employers, said the Army selected it to manage the Radford Army Ammunition Plant in southwest Virginia for the next 10 years.

The Radford plant, established in 1941, is a government-owned, contractor-operated facility that manufactures propellants for military munitions. The contract is worth about $850 million. The Army has the option of extending the job another 15 years through 2036.

Rolls-Royce Opens Engine Plant in Virginia

Rolls-Royce, the UK icon that runs its North American headquarters for engine and propulsion systems from Fairfax County, opened a manufacturing plant in Prince George County south of Richmond, Virginia. The Crosspointe facility, the largest that Rolls-Royce has in the States, initially will create 130 jobs and that number will grow to 500. The campus also will accommodate the Commonwealth Center of Advanced Manufacturing, a research facility partnership formed by the Commonwealth of Virginia, the University of Virginia, Virginia Tech and Rolls-Royce.

Strategic Thought Takes New Name: ActiveRisk

Strategic Thought Group, a UK-based developer of risk management software with US operations in Herndon, changed its name to ActiveRisk. The new branding more accurately reflects its focus on delivering world-class risk management and enterprise GRC software and related services to customers which include some of the world's most respected organizations.

Strategic Thought was founded almost 25 years ago as a specialist technology consulting firm. In 2001 it launched Active Risk Manager (ARM) software when it identified the need for an easy to implement and deploy solution to record and assess risk and opportunity information in major projects and across organizations. In the past decade ARM has become a leader in its field.

FROM OUR MUNICH OFFICE

Software AG buys US firm Terracotta

Software AG, one of the leading German back-office software companies with US headquarters in Fairfax County and one of the first foreign-owned companies to locate in the county, announced the acquisition of San Francisco-based software company Terracotta.

With the acquisition, Software AG plans to expand its services in the fast-growing cloud computing business. According to Wolfram Jost of Software AG, "the acquisition is an important milestone, since Terracotta offers software technologies which allow a faster processing of large data." With this acquisition, Software AG is taking a further step in becoming an integrated software company.\

Schneider Electric Buys Data Centre Servicer Lee Technologies

Schneider Electric, the France-based global specialist in energy management, acquired Fairfax County-based Lee Technologies, a leading service provider for the data centres of the North American market.

Lee Technologies has more than 300 employees and generated sales of about $140 million in 2010. The company specialises in the mission-critical data centre services, including remote monitoring command centres and on-site critical facility operations. It serves several customer segments including the US government, financial services, telecommunications, information technology and healthcare.

Laurent Vernerey, Executive Vice President, Schneider Electric IT business said: "Lee Technologies possesses a deep and intimate knowledge of both its customers' needs and data centre operations.  This unique combination of business and technical expertise and total lifecycle service will broaden our client base, extend our advanced service capabilities and enable us to provide our customers a totally 'managed' contract to meet their needs."

Deutsche Telekom and AT&T Reach Agreement to Sell T-Mobile

Deutsche Telekom reached an agreement with AT&T to sell T-Mobile, which runs its US federal sales division from Fairfax County, for $39 billion. The proposal is being scrutinized by regulators.
Of the four leading mobile providers, at the end of 2010 T-Mobile counted 33.7 million US customers. Sprint Nextel had 49.9 million, Verizon Wireless 94.1 million and AT&T 95.5 million.

With its sale Deutsche Telekom will most likely expand into new foreign markets. In contrast to its competitors Telefonica and France Telecom, Deutsche Telekom is not present in the growing emerging markets, but only in Eastern Europe.

CEBIT Attendance on the Rise

At the beginning of March FCEDA Europe visited CEBIT the leading world wide trade show for digital solutions in the field of information technology and telecommunication.

This year the number of visitors increased to about 350,000 from 300,000 in 2009.

 The FCEDA Europe meetings with companies and business promotion agencies revealed that the IT and Telecommunication Industry has recovered from the economic down turn much faster than expected; the industry is forecasting growth rates exceeding 8 per cent for this year.