Infinite Eyeing Acquisitions In BPO

New Delhi: | Updated: Sep 19 2003, 05:30am hrs
Bangalore-based Infinite Computer Solutions is scouting for acquisitions to enter into the business process outsourcing (BPO) business. The Rs 250 crore company is also looking for a mid-sized software services company operating in the banking, financial services and insurance (BFSI) sector.

The company will also be doubling its India software development strength from around 300 at present to 600 by the end of this fiscal (March 2004). It currently employs around 1,050 people worldwide, of which around 700 are working in the US, 300 in India and the rest in the Asia-Pacific region.

Infinite Computer chief operating officer Upinder Zutshi said, We are looking for inorganic growth in the software services business while planning an entry into the BPO business through acquisitions. Funds are not a limitation as the company has substantial cash reserves and is also tying up external funds.

Mr Zutshi said that his company was willing to invest around $8-12 million in acquiring a software firm and it was already in talks with a couple of Indian software companies.

For BPO, we are looking for an established, mid-sized company with a proven track record. We are not interested in just back-end infrastructure, he added.

The company had been receiving enquiries from its customers for outsourcing of back-end operations. We are quite strong in the utility vertical and the company earns almost 70 per cent of its business from this vertical. We are now looking at BFSI as our next focus area, said Mr Zutshi.

Mr Zutshi indicated that the companys future growth would be centered around India operations. Infinite Computer Solutions is an Indian company with subsidiaries in the US and Singapore. The company has two development centres in the US to offer near-shore software services while it has one development centre in Bangalore for offshore delivery.

Mr Zutshi claimed that the company was projected to achieve a revenue of $70 million (Rs 335 crore) for the financial year 2003-04 with the global headcount to touch 1,250 including 600 at the offshore facility in India.

The company has reported a revenue of $16.7 million (around Rs 80 crore) with profit (before interest, profit and depreciation) of $2.1 million (Rs 10.8 crore) for the first quarter (April-June) this fiscal. Indian operations have contributed 18 per cent of the quarters revenues, claimed Mr Zutshi.