Patni to enter new verticals, eyes BPO space

By : |June 30, 2002 0



MUMBAI: Patni Software is planning to venture into three new verticals that
include healthcare, retail and utilities sectors by the next quarter. The
company also has plans to foray into the BPO space.

Patni senior vice-president, Vijay Khare said, "As per our expansion plans,
we are evaluating the opportunities in these sectors and soon it will be a
reality. We want to diversify in these sectors because we have the capability to
do so."
The company has little presence in healthcare sector that contributes around ten
percent of the company’s total revenues.
The company already has the presence in the insurance, financial services and
manufacturing verticals.

The company would develop the domain knowledge of these new verticals on its own
and has no plans to grow inorganically or through acquisitions. For this the
company would hire subject matter experts from these verticals and strengthen
its investments. The company is expecting $15 million to $20 million from these
verticals this year.

The company is also evaluating its entry into China and South Korea. The company
has presence in USA, United Kingdom, Germany, Switzerland, Japan, and Australia
among other countries. The company is also cutting its exposure from the US
markets to Europe and Asia-Pacific regions. Currently 75 percent revenues are
coming from the US.

The company also has plans to foray into the business process outsourcing (BPO)
space within six months. The company is expected to make a public announcement
regarding the exact nature of this operation shortly. The company intends to use
the BPO platform to complement the application and product development support
services that it currently provides to clients. Hence, BPO operations would be
back-office centric as compared to a call center business model that is dominant
today

The BPO services would revolve around key verticals such as financial services,
insurance and manufacturing that Patni currently focuses on. But still the
process is under evaluation and the company has not divulged the exact scale of
operations or the investment that the company would be making in this space.

The company had total revenues of $142 million for the year ended December 2001
and is expecting a revenue growth of 30 per cent during the current year.

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