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Patni to enter new verticals, eyes BPO space

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CIOL Bureau
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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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