Electronic Data Systems (EDS), has acquired a majority, stake in Mphasis, an Indian outsourcing company. The move extended EDS push into the country, EDS which along with other IT groups has been challenged in recent years by the rise of low-cost competition for outsourcing contracts from rivals in India.

The move follows IBM’s announcement that it will pump up to six billion dollars in India over the next three years.

Ron Rittenmeyer, COO, EDS, said that the acquisition will allow EDS to boost its Indian workforce to 20,000 by the end of the year, compared to about 4,000 today.

Mphasis, which made a profit of $33 million last year, specializes in outsourcing of call centers and IT processes for big banks, telecom and healthcare companies.

EDS said that the total cash consideration for the majority stake was worth about $380 million.