Syntel Inc plans to expand in India

Indiamart: Syntel Inc, a key player in the KPO segment, plans to expand in India and the European markets and tap into the healthcare market.

Keshav R. Murgesh, President and Chief Executive Officer, Syntel Inc, told Business Line the company is planning to invest close to $35 million in 2009 in both its facilities in Pune and Chennai. It has already invested about $35 million in 2008.

“The majority of our spending over this time period has resulted in the building of almost 6,000 seats in Pune and we expect to complete the over 5,000 seats in our Chennai campus in the third or fourth quarter of this year. We are also looking at Tier-2 cities for additional investment and future growth opportunities,” he said.

He said all the capital investments would be funded from internal accruals. Asked about the intake of freshers into its fold, Keshav said the company was continuing to recruit on the BPO front.

On the IT side, however, it has postponed the intake of freshers till the third quarter of 2009. “In our current environment, our ability to hire quality people onsite at lower costs is higher.”

Commenting on the expansion into the European markets, Keshav said the company had ramped up its investment there including in country leadership and sales presence. The objective was to leverage its existing footprint while building additional brand recognition and specific service offerings within its targeted geographies.

Keshav said the healthcare organisations had been slow in adopting offshore outsourcing, as cost pressures had not historically been an issue. This had changed in the current economic environment and as a result, the opportunity for increased adoption was significant.

Being a US-owned and operated company with healthcare experience and having registered 13 per cent of its revenue from this segment, it is looking at further expansion in this area.

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