Financial Daily from THE HINDU group of publications
Saturday, Jun 14, 2003
Financial Daily from THE HINDU group of publications Saturday, Jun 14, 2003 |
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Info-Tech
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Mergers & Acquisitions Infinite looking at buys in BPO space — Targets $70-m revenue in 2003-04 Our Bureau
BANGALORE, June 13 INFINITE Computer Solutions has said it is looking at acquiring companies in the IT services and BPO space in the next 12 months. "We are in talks with several companies, predominantly in India as well as in Singapore and the US for acquisitions. In the IT services space, we are looking at companies with revenues of $7-15 million while in the BPO space we are targeting companies with turnover in the $4-5 million range," said Mr Upinder Zutshi, COO of the company. "We have an arrangement with a Singapore Government fund to finance an all-cash or cash-and-stock acquisition when it happens", he said. The company, which announced it earned $53 million (Rs 254 crore) in 2002-03, said it set a revenue target of $70 million (Rs 335 crore), a growth of 35 per cent for 2003-04. The company which is investing Rs 15-20 crore in its Bangalore-based India development centre, is planning to ramp up its offshore operations - - the headcount at its India facility is expected to nearly double to 600 by the year-end and double again in the next year. "We will not add any people at our US operations, but plan to touch 1,250 people at the India operations by the end of next year," said Mr Rakesh Tiku, Vice-President, Global Delivery. "While utilities, including telecom and energy, have been our major clients - contributing over 69 per cent of revenues, we are also looking to strengthen our offering to the BFSI and healthcare sectors", Mr Zutshi said. The acquisition target in the IT services space will probably be in the BFSI space, according to the company. "Our existing clients are planning to outsource their business processes in the next quarter and we want to be able to take advantage of that opportunity - hence the BPO acquisition, not forgetting the impressive growth charted by the sector, Mr Zutshi said. "We have long-term and deep relationships with Fortune 50 clients and that is why we were able to clock 38 per cent growth last year though tier-II companies grew by a negative 5 per cent last year, according to the National Association of Software and Services Companies (Nasscom), Mr Zutshi said. "We have repeat orders from 90 per cent of our customers." The company plans to establish new offices in the US and Asia-Pacific region - primarily Japan and Australia. "We are enhancing the offshore delivery options for our customers while also retaining the comfort-level of onshore for our clients. "Infinite also set up operations at two `onshore, offsite' locations in Tampa, Florida and Dallas, he said. "With multi-year contracts and relationships in tens of millions of dollars with clients such as Horizon, and new clients such as JP Morgan Chase, GE Medical Systems and SNTG, apart from exisiting customers such as Nextel, Lucent Technologies, Verizon, IBM, Motorola and Neustar, we have a strong track record and US ties and networking that enable us to compete effectively with the likes of EDS and Accenture," Mr Zutshi said.
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