CitiusTech is planning to clock $1-billion in revenue in the next 3-4 years. The healthcare technology solutions company is also planning to make acquisitions in the US and European markets, and build a stronger partner ecosystem, according to Rajan Kohli, Chief Executive Officer at CitiusTech.
The company reported $350 million in revenue as of FY21. It is confident of clocking $500 million by the end of the year.
According to Kohli, the company has been registering 25 per cent organic growth on a sustained basis.
“We will focus on increasing cross-sell, upsell, and penetrating more big accounts in the size band of $15-25 million with multi-year deals and fixed pricing. We will invest in our horizontal capabilities, especially in Cloud and data, and also increase our employee headcount across locations,” Kohli told businessline.
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Focus on acquisition
“The current slowdown gives us an opportunity to buy some assets in the US and European markets, with the US being the primary focus. In Europe, we will be keen on assets in the life sciences category,” Kohli said. The company is looking at capability-based acquisitions in the data, Cloud, or other newer spaces.
The company is also planning to expand its partner ecosystem.
“I think as a company we haven’t punched above our weight yet. With the kind of expertise and client relationships, we should have established much more closer relationships with our partners. On an average, a company gets about 25-30 per cent of the pipeline through partners. Ours is lower. So, if we can strengthen our relationship with our partners, we can actually grow faster,” Kohli said.
CitiusTech is planning to expand operations beyond the US and India. It is setting up a delivery facility in Poland to serve the local market and the US clients. However, India will continue to be the primary delivery facility and the company will continue to do more in India, he added.
CitiusTech has four major business markets—Payers, Providers, Life Sciences, and Medtech.
According to Kohli, Payers, and Medtech are the largest revenue contributing verticals. The company provides application development services such as modernisation, Cloud, digital, and data. It serves more than 140 healthcare and life sciences organisations.
Out of its over 8,500 employees globally, 75 per cent are in India.
The teams in India work on marketing, back-office operations and core development. Currently, it has offices in Hyderabad, Chennai, Mumbai, Pune, Gurugram, Noida and Bengaluru and has plans to expand to other cities in the country.
Kohli said the company is planning to enter tier-2 cities in the next two years. However, there are concerns about non-availability of specialised Cloud and data talent in those areas.
On the impact of global slowdown on the health-tech sector, Kohli said the Payers and Life Sciences segments haven’t been effected, but the Providers market has been under stress due to increase in labour costs. Also, Medtech segment is witnessing some slowdown.
“Clients want smaller projects and are not willing to commit to long-term engagements. They are cost sensitive, but for the right skills, especially in the new growth areas, they’re willing to pay due to limited availability of human resources,” he added.