Virtusa Has $5 M India R&D Ramp-up Plan

New Delhi: | Updated: Jan 31 2003, 05:30am hrs
US-based Virtusa Corporation, software development and technology services company, is planning to invest $5 million in expanding its research and development (R&D) capacity in India by March 2004. The company intends to hire over 650 developers in the country by the same period. Further, Virtusa is also looking at acquiring an existing IT-enabled services (ITES) company in the country.

As a company, we are highly focused on India for its technology competence and not as a market for our solutions, Virtusa Corporation worldwide sale and marketing executive vice president Hari Murthy told eFE.

One of its three global development centres is located in Hyderabad where 350 developers are already involved with R&D work.

Virtusas other two development centres are in Colombo and Boston.

We are planning to set up another development centre in India and are evaluating locations like Gurgaon, Noida and Chennai, Mr Murthy said.

In order to enter the ITES space, the company is evaluating companies in the country for acquisitions.

We have cash reserves upto $50 million and hence we have not put a cap on the kitty for acquisitions, he said.

Globally Virtusa has over 900 developers (including the Indian developers) and, by March 2004, the company is targeting to hire a total of 2000 developers (including 650 developers in India).

Virtusa is funded by venture capitalists like Charles River Ventures and Sigma Partners of the US.

The VCs have invested a total of $45 million in the company in place of an equity share of 20 per cent.

The employees of the company hold 25 per cent while the rest is held by the promotors.

As the technology is changing at a rapid pace, the large corporations face uncertainty. Hence, these companies turn towards companies like ours which specialise in product development, he said.