Hyderabad: The $90 million Philadelphia, US-based IT services and software solutions company, and subsidiary of NYSE-listed Safeguard Scientifics Inc, Alliance Consulting Group Associates Inc, has acquired the city-based Mensamind Inc.

The latter, renamed Alliance India will specialise in global delivery of software development, product development and related support services.

Alliance Consulting Group has long term plans to commit investments in India. According to Rao Tummalapalli, managing director, Alliance India, "The company currently has 100 employees which will be increased to 1,000 in the next three years," he said.

The company plans to invest up to about $50 million in India.

Anthony A. Ibarguen, president and chief executive officer of Alliance Consulting said, "We are envisaging an investment of around $50 million in the Hyderabad centre," he said. "Our application outsourcing model has been in high demand with corporate and ISV clients, and we feel that the addition of Mensamind gives us the flexibility to do business the way our clients want, onsite, offsite, offshore or a blended hybrid of the three," he added.

He said the Alliance Consulting chose Mensamind after having looked at other companies in India. He said, "Mensamind has been successful in delivering outsourced engagements for US-based companies and that is why we thought it will complement Alliance Consulting's onsite software solutions and consulting experience and client base," he said.

The chief technology officer of Safeguards Scientific, John Luftus, said: "We manage portfolios valued at over $2 billion and have helped a number of companies in IPOs and mergers and acquisitions. The companies that we helped include Comcast, QEC and Novell, Cambridge Partners and Mantis. The acquisition of Mensasmind would help address new areas of business. Our focus has been on growing business through mergers and acquisitions and we will continue to scout for more acquisitions in India."

Mensamind, a Chicago-based consultancy and IT services company with principal operations in Hyderabad, was carved out of acquisition of the Indian operations of Devine Inc.

The Hyderabad-based executive management team of Alliance India includes Tummalapalli, Gobind Baghasingh, Swaminathan Mani and Sarma Manthravadi.