Bengaluru-based Sonata Software is contemplating consolidation of all its office space in Global Village Tech Park, Mysore Road.
The company’s growing focus on international IT services business and catering to a hybrid workforce requirement are some of the reasons behind the move.
Jagannathan Chakravarthi Narasimhan, CFO, Sonata Software, said, “There are plans over a period of time to consolidate our current office in Basavanagudi, Bull Temple road with our facility in Global Village Tech Park, Mysore Road.”
Narasimhan added that employees today also want their offices to be modern and swanky with all amenities. The move to the new office is also in line with Sonata’s requirement for a hybrid workforce.
The company’s international business has a high margin of 23.8%, compared to just 2-3% from its domestic business.
Sonata aims to double its international business to $500 million in the next three years from a current topline of $241 million. Currently, the company’s total business stands at $925 million, including both international IT services business and domestic product and services business.
Jagannathan said, “The international IT service business has high margins with a huge potential to grow bigger. Whereas the Indian (domestic) product and service business is a trading one with low margins. So, the valuation can’t be very high. On the other hand, because of high margins in the international business, valuation can be really good.”
He added that because of the hybrid work model, investment in facilities will not give them good returns. While the Bull Temple office is an administrative space with 500-600 employees, the Global Village property is a delivery centre that has around 1,800-2,000 employees. The CFO said that based on future requirements, the company will take up additional space on lease in Global Village.
Sonata has about 6,400 employees as of March 31, 2023, and most work onsite. Hyderabad has about 1,300 employees and Chennai around 400-500 employees. It has also offices in Pune, Mumbai, Kolkata and Delhi.
