The Hindu Business Line : Megasoft rejigs operations, to induct 600 more

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Hyderabad, March 1 Telecom and software solutions provider Megasoft Ltd has restructured its operations after completing the merger process with VisualSoft Technologies Ltd.

The company is awaiting formal approval from the High Court of Andhra Pradesh and RoC (Registrar of Companies) to formally merge the two companies.

The Managing Director and the Chief Executive Officer of Megasoft, Mr G.V. Kumar, said that the business restructure covers two distinct areas — one that would be lead by Xius, its telecom division, to offer integrated telecom solutions including infrastructure and managed services and the other on product lifecycle management.

Megasoft would have four strategic business units — three addressing the telecom vertical and the fourth product SBU.

The outsourced product lifecycle management division, which would leverage the capability and resources acquired from Visualsoft Technologies, has already bagged 2 multi-million-dollar product development deals.

These include work for SyncVoice Technologies and another insurance company based in the US. Mr Kumar told Business Line, "we have not retrenched even a single person as in a booming IT environment it would be hard to find good technology resources. In fact, the business momentum is such that we expect to add about 600 more people during the year to the existing 1,250 people of the combined entity."

As a part of the new go-to-market strategy, Megasoft has inducted two senior professionals — Mr Mike Powell and Mr Kerry Morgan — and is in the process of adding three more senior professionals to address new geographies covering Latin America, Europe and West Asia."We have decided to expand the telecom infrastructure management and managed services offerings, while combining the technology services capability of resources from VisualSoft. The market for MVNOs or mobile virtual network operators is poised for growth. The focus would be to address this emerging business opportunities in the US and other markets," he said.

While My Pears and Roamfree continue to drive Xius growth, this would now be complemented by infrastructure related services.

Once the court nod is received, VisualSoft shares would not exist as its shareholders would get Megasoft shares as per the arrangement agreed upon.

Henceforth, there would be two brands— Megasoft that continues to address application development products development and infrastructure management services and Xius, focussed on telecom.

"The company balance sheet for the first quarter in 2007 would be a consolidated one. Together, we expect to achieve a topline of Rs 375 crore and profit of Rs 60-65 crore this year," Mr Kumar said.

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