Microsoft and Infosys have collectively invested $8m in a sales drive to combine Infosys' consulting, research, intellectual property and project methodology with the latest Microsoft .Net software.

The collaboration will develop industry-specific offerings including an engineering system designed to improve product development lifecycle management for automotive and aerospace organisations, together with a retail platform that aims to improve information flow to in-store operations.

The firms will also offer an RFID system that enables organisations to assess the value of the emerging technology.

Consulting services covered by the agreement include strategic IT planning, IT portfolio management, systems integration and implementation and change management.

Commenting on the relationship, Microsoft chief executive Steve Ballmer said: "Microsoft's long-term focus on delivering an integrated, manageable and reliable platform, combined with Infosys' unique delivery model and deep consulting skills, is designed to help customers succeed and grow through increased efficiency, cost savings and business value."

Speaking at Infosys' headquarters in Bangalore today, Nandan Nilekani, Infosys chief executive, president and managing director, added: "Our two companies agree that by bringing together complementary assets and skills our clients will benefit from a unique experience of the combined expertise."