Mid-tier IT services firm Zensar plans to use its historical high profitability and a cash balance of $160 million to fuel investment in sales and inorganic acquisitions to add capabilities and target clients.

The company said in a recent analyst call that it would use cash balance majorly for acquisitions. It has identified three parameters for the same, capability enhancement, increased access to skills, and market access.

“Zensar reiterated its go to market strategy under the new leadership of Ajay Bhutoria. It reiterated its focus on five strategic growth opportunities to better target the enterprise market. Zensar expects its capabilities under Experience Services (10 per cent of revenue) to fuel business in Advanced Engineering Services, Data Engineering, Analytics, and Infra Services. Application Services will remain a focus area, given it’s the largest volume generator in the business,” analysts at Motilal Oswal said in a research report.

The company has been investing in building up its sales strength on increasing/restructuring the sales team and enriching the sales process. It is also hiring/restructuring several business heads and bringing in senior delivery personnel. “The management said there is an acute shortage of relevant talent in the market. To manage the same, it has enhanced its onboarding engine by expanding its recruiting team and invested in better training of freshers. It has also invested in the recruitment process to onboard laterals and on-site talent (East Europe),” the report added.

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