Leading IT services provider, debis Systemhaus GmbH, has signed a memorandum of understanding that will see German expertise energizing the Balkan outsourcing market. If all goes to plan the DM4.4bn ($2.4bn) arm of DaimlerChrysler Services (debis) AG will form a 50/50 joint venture with Zagreb-based petrochemical firm INA-Industrija Nafte d.d. that should be in action by the end of this year.

The joint venture will carry out data center outsourcing, SAP services, applications development, desktop services and network services for INA. These services will also be offered to third-parties in Croatia, especially in the public sector, travel and transportation and financial services sectors. debis Systemhaus hopes, in time, to sell similar services in neighboring countries – allowing for political stability.

INA, a group of around 20 companies with 15,364 employees in Croatia, is Croatia’s largest enterprise, generating 12% of the country’s GDP. The agreement extends debis Systemhaus’ existing agreement to work with INA to implement a 1,000-user SAP R/3 system, a project started earlier this year.