Royal Philips Electronics has signed a multimillion-dollar outsourcing contract with Infosys Technologies.

Under the terms of the multi-year deal, Infosys will handle financial services and process purchasing orders for Philips, and 1,400 staff will transfer over to the supplier. The Bangalore-based IT business will also gain three shared service centres based in India, Poland and Thailand.

'Global corporations require transformation partners like Infosys to enhance their competitiveness in the flat world,' said S. Gopalakrishnan, chief executive at Infosys.

'We are excited to partner with Philips to take their finance and accounting and procurement functions to the next level of transformation.'