HCL Technologies, the country?s fourth largest software exporter, expects emerging geographies like Korea, Vietnam and Indonesia to contribute 20% to its total revenues in the next five years. At present, the emerging geographies contribute around 16% to the company?s overall revenues.

?It would take about five years to reach 20% growth from rest of the world. From approximately 12% share, we have reached 16.3%. Going by these trends, we should touch 20% in five years,? said Rajiv Sodhi, senior corporate vice-president HCL Technologies.

In emerging markets, the deal sizes that the company is looking at are between $5-10 million, spanning across 3-5 years. In fact, the firm recently inked a pact with the Multipolar Technology, a subsidiary of Indonesia?s Lippo Group, to secure IT outsourcing projects in banking, telecommunications and other sectors this year.

?After Indonesia, we are looking at Korea and Vietnam but we want Japan and China to be a success story first. The market seems opportune for business and the deal size would range from $5-10 million, this being a smaller market than usual. Sectors that are showing traction in this geography are telecom and financial services,? Sodhi added. In China, the deals will be manufacturing-oriented while in Indonesia ? which is undergoing financial reforms ? will see deals in the BFSI segment. Further, with development in infrastructure, telecom and financial sectors, HCL Technologies is seeing an opening up of sectors like retail and healthcare in the emerging markets.

For HCL Technologies, emerging markets in the US are Latin America, Brazil and Mexico whereas in Europe, they are Continental Europe, Nordics, and Sweden. Software body Nasscom has estimated that emerging markets will contribute almost 10% to the country’s total software exports of $59 billion in the current fiscal. The emerging markets are growing the fastest of all geographies at 22.3%.

Sodhi said in emerging markets, the intensity of absorbing large deals is comparatively less but the intensity to spend is very high. ?Once scheme of things becomes organized we can look out for large size deals in emerging markets as well. The most favourable way of entering new markets is through partners but small acquisitions that give us market access are also fine,? he added.