Pune-based IT firm to increase focus on enterprise business in the Middle-East.
Software services provider Zensar Technologies Ltd plans to invest Rs50m ($1.07m) in FY11, mainly to set up two development centres, a top official said on Thursday.
"We are setting up a 300-seat centre within SEZ (special economic zone) in Hyderabad, which will start in September," Vice Chairman and Managing Director Ganesh Natarajan told Reuters over the telephone.
The firm, which already has development centres in Hyderabad and Pune, also plans a 100-seater centre in Shanghai which would be operational by September, he said.
The Shanghai centre will help further the company's global plans, and provide support to U.S. customers' manufacturing needs in China. It will focus primarly on manufacturing and government verticals.
It also plans to open an office in Saudi Arabia, following an increase in focus on enterprise business in the Middle-East. "Under our overall recruitment plans for this year (FY11), because there is a lot of projects ramping up, we need to around 750-800 people," he said, adding the company has been getting projects at "higher rates."
The company is chasing over 3-4 deals worth over $10 million, while there are at least 40-50 "prospects" in the pipeline, he said.
Zensar added 109 employees in April-June, taking its total headcount to 5,342, it said in a statement.
The IT firm expects an attrition of around 15-18 percent in this fiscal, compared to under 7 percent last year.
"Last year (FY10) was an exceptional year, while the previous year the attrition was at 18 percent (FY09), and we expect to contain it at that (FY09) levels," Natarajan said.
For April-June, the company got good business from all its three major territories - South Africa, US and UK - while the company has a limited exposure to continental Europe.
Earlier in the day, Zensar reported a 9 percent rise in net profit at 324.8 million rupees for April-June.
"We are targetting a double-digit growth this year, both in revenues and profits, so I think we are very much in line for that," he said.
"...unless there is a major issue of currency, or any European impact on UK, I think it would be a good year."
The Pune-based company is also evaluating three US companies for acquistions in the range of $60-100 million. The company was looking to acquire companies with annual revenues of $40-$120 million. (Reuters)