Published on Thu, Apr 10, 2008 at 08:37 | Source : Business Line
Updated at Thu, Apr 10, 2008 at 09:01
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Syntel to invest $60 m in capacity expansion
Syntel Inc, a US-based software company with offshore development centres in India, plans to invest $50-60 million in capacity expansion in India this year. This will enable the company to add around 6,000 seats to accommodate 2,800-3,500 employees, according to the company’s President and COO, Mr Keshav Murugesh.
Syntel for 2007 reported net income of $63 million compared with $51 million in 2006 on revenues of $338 million ($270 million). Based on the current visibility, the company's initial guidance for 2008 is expected to be $405-420 million, says a company release.
Mr Bharat Desai, Chief Executive Officer, Syntel, said macro economic trends are very strong towards globalisation of services. "This is an irreversible mega trend," he said, adding that challenges to an economy have always only resulted in more outsourcing -such as during 'Y2K' and '9/11'. Economic pressures are going to force customers to look at cost structures and make strategic decisions about both IT and operations outsourcing, he said.
He said there has been lots of noise on the wage side. But offshore wage inflation is going to be 14-15 per cent and onsite it is to be 4-5 per cent.
