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IT by itself does not make a company profitable -- Magapu 

Subhadip Sircar  
Mumbai, Oct 9: Larsen & Tourbo Information Technology Ltd (LTITL) new chiefexecutive Vijay Kumar Magapu takes some time off from his busy schedule andtalks at length to The Financial Express. This is his first formal interviewafter he took office where Mr Magapu outlines his vision for LTITL, which heenvisages to be "a strong global company with a good delivery engine."

Excerpts:

There has been talk of L&T launching portals with the help of LTITL.Could you elaborate?
L&T is coming up with more than one portal. First, there is the B2B platformfor only L&T businesses. The electrical business unit has come out with itsown portal, engineering and construction division (E&C) has launched aportal for procurement. LTITL is working on about six such mega portals. Weare also working on B2B exchange. It is driven by state-of-the-art software.

We are working with Ariba components and Commerceone components. We arelooking at I2 technologies. The implementation and customisation is beingdone by LTITL.

Are you looking at partnerships for the various portals?
Yes. We are looking at potential partnerships with large portals in the USsupported by oil companies.

What will be LTITL's thrust area for providing business solutions forpotential customers?
A large number of companies are trying to make use of information technologyto improve business. First, we are looking at extended enterprise solutions.

After integrating, there is an urgent need to get the integration to theworldwide web. Third, there is a move from e-business to mobile commerce(m-commerce) which has more possibilities.

How does LTITL stand to gain with regard to boom in softwaresolutions?
L&T must take advantage of this new scenario. LTITL has a preferred supplierstatus. Our mysap.com was implemented by the electrical business group.

LTITL gains by experience, there being the tremendous possibilities ofmultiple reflections.

How do you envisage a scenario where LTITL will be providing solutions toL&T's competition?
If we don't, someone else will. Information technology, by itself, does notmake a company profitable. It is ultimately the people who matter.

What are the areas of interest for LTITL in India?
We are looking at the financial sector, including insurance and banking,telecom, travel and tourism and leisure which are big-ticket beneficiariesof liberalisation. We are also looking at prospects of giving softwaresolutions to the public sector. We are, for example, looking at areas ofe-governance.

What are your plans for the export market?
Nearly 99% of our current business is global. We have representations in US,Asia Pacific, Japan and Canada. Over the last 6-8 months, LTITL employeesare being posted overseas. We also have six large offshore developmentcentres in India. We are planning on adding three more offshore developmentcentres.

How does LTITL address the issue of exodus of its software professionalsto rival companies?
It was incorrectly reported. Our instrumentation business unit had takensome telecom initiatives some 6-7 years ago. However, there was a cusp of2-3 years during which there was a temporary decision to wind it down. Thisresulted in some engineers leaving the organisation. But that was over fouryears ago. However, it is a fact that some people in the operating divisionare wanting to shift to software. We are looking at possibilities tofacilitate this. But a balance must be maintained. We are looking at havinga tentative strength of 7,500-8,000 employees in a period of six years fromour current strength of about 1,600.

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