• Investment World
• eWorld
• Catalyst
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources

Group Sites

• The Hindu
• Business Line
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

R. Savitha

Pune , Feb. 16

INVESTMENTS in IT strategy consulting, acquisition of a financial or consulting service firm in the US, revenue target of Rs 550 crore and a serious look at the domestic market is the growth blueprint for 2006-07 drawn up by the RPG group's software and business process outsourcing arm, Zensar Technologies.

Dr Ganesh Natarajan, Deputy Chairman and Managing Director, Zensar Technologies, told Business Line the acquisition would be in finance or consulting and one which did not require back-office operations. The company has set aside a kitty of about $10 million, he said.

Dr Ganesh said the company, which has made inroads into the Chinese market with two international projects, is ramping up its operations by hiring a marketing officer of Chinese origin to tackle the local market. He said though projects had been completed in the Chinese market, the company so far had not been able to make any inroads into the Government projects. The Japanese market has also been in the loop since its association with Fujitsu and the latest addition of Nomura Research Institute. Dr Ganesh said it is in talks in Nagase with a school chain of 300 franchisees and 40,000 students. This is for student assessment and online examinations, he said. He noted that it was expecting about 60 per cent growth in the Japanese market.

Coming to the APAC region, Dr Ganesh said the revenue contribution would be 100 per cent this year to touch $22 million, while it would be close to 60 per cent next year and would be touching $33 million. The revenue spread was about 50 per cent from the US, 20 per cent from Europe and the rest came in from APAC and South Africa. For 2006-07, the new market target included Sweden, Holland, France and Switzerland.

Dr Ganesh said it was set to consolidate its consulting business across its five SBUs (strategic business units). Now about 5-6 per cent of the total turnover was contributed by the consulting arm . Dr Ganesh said for the first time, Zensar would be seriously looking at the domestic market. It has already begun talks with a couple of manufacturing units in the country, and the revenue estimated is about Rs 10 crore by March 2007. Dr Ganesh said the innovation technology solutions centre in Hyderabad would be ready by early July and would cater to the financial services business. Pune would see the construction of another building, which could seat 800 software professionals.

By the end of 2006, the company expects to locate about 400 people in Hyderabad, of whom about 250 would come from its recent acquisition of OBT Global Inc, a specialised SAP solutions provider.

More Stories on : Software | Mergers & Acquisitions

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
`Outsourcing from Europe looks strong' — Competition, language, legislation pose challenges

Copyright © 2006, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line