In a move to realign its strategy in China, Amdocs has signed a partnership agreement through which it will divest an 81 percent majority stake in its Longshine business to a newly-formed and locally-managed entity, Longshine Technology Holding.
Amdocs remains committed to the Chinese market and will pursue opportunities in China both directly and through its holding in Longshine.
Amdocs will continue to offer its CES 8 products throughout China and support current customers, including Beijing Mobile in its Beijing support center. In addition, Amdocs plans to continue to operate and grow its delivery center in Tianjin.
"The market dynamics have not evolved in the way we had anticipated when we acquired Longshine in 2005," said Ayal Shiran, head of the customer business group for Amdocs Management Limited, in a statement. "At this juncture, many Chinese telecommunications companies are still demanding locally-driven, custom built system development from companies like Longshine, while much of Amdocs’ strength lies in our industry-leading CES 8 portfolio and our success in delivering our own products."