Zensar eyes Rs 100-crore revenue from domestic mkt, to reduce cost

Following the industry trend, where Indian software export companies are aggressively looking at the domestic industry as the global IT spending falls, RPG group?s Zensar Technologies is targeting Rs 100 crore revenue from the Indian market this fiscal.

Currently, the domestic market contributes around Rs 40 crore to its top line, which is 4.5% of its overall revenues.

?We have significantly stepped up our focus on the India market and expect to get around 10% of our revenue from the domestic operations,? said Ganesh Natarajan, vice-chairman and CEO of Zensar Technologies.

Natarajan added that the company was hoping to clock around Rs 20 crore from the implementation of SAP, while another Rs 15 crore will be garnered through Oracle software projects. ?We plan to get another Rs 12 crore from utilities and education spaces,? he said.

Zensar is looking at projects with electricity, water and power companies in the domains of asset management and GIS. In the educationspace, it is looking at working with large private universities.

As companies are looking at more cost efficiencies in these times of distress, Zensar has started a programme called impact sourcing, which talks about 10% cost savings in 10 months for Indian companies. Natarajan said the company is targeting firms in the retail and manufacturing domain for this programmes. ?This 10% reduction in cost will come through either revenue maximisation or an outright reduction in the cost,? he said.

The recent past has seen Indian IT companies stepping up their focus on India as the global economic crisis has had a severe impact on their revenue. According to an industry analyst, apart from the meltdown, the increased opportunity in the domestic market is also spurring the trend. Almost all the top Indian IT companies in India have publicly announced their intentions of increasing their domestic exposure.

While TCS, which is the strongest player in the market, plans to double its India revenues, Infosys has a deal pipeline of $1 billion from India over the next few years. HCL, too, sees an opportunity in the domestic market.