Intec to invest $12 mn in B'lore

UK-based Intec Telecom Systems, which offers operational support, access billing and retail billing services for telecommunications operators worldwide, has lined up a $12 million expansion plan for its Bangalore office.

Intec, which services 60 per cent of the world's top 100 telecommunications firms, has a 333-seater office in Bangalore. It caters to Intec's customers across all geographies in the telecommunications' retail billing space.

Recently, the company moved a portion of the mediation operations (tracking movement of telephone calls and data on the network) to Bangalore. Intec's India operations account for 21 per cent of Intec's strength of 1,600.

"Our business is expanding rapidly in developing nations, especially where telecommunications sector is opening up. The scope for expanding Bangalore operations is immense since the talent availability is tremendous. We intend to double the Bangalore office headcount to touch 600 over the next 18 months. We plan to invest $12 million in 2007 for expansion of the Bangalore office," Intec Telecom Systems COO (Product Operations) Gary Bunney told Business Standard.

The company has similar operations (retail billing) in Canada, Ireland and Australia with a combined headcount of 290 professionals. But it is firm on limiting their growth.

"We are very clear in our approach. We want the Bangalore office to drive the business. We are getting more contracts. The size of existing contracts is also increasing. Other operations like interconnect billing (billing between telecommunications operators for calls originating from one operator and terminating at a different operator) will be moved to Bangalore gradually," he pointed out.

Intec, which started its Indian operations in 2005, had invested $10 million in Indian operations by the end of 2006.

"The R&D spend was $30 million in 2006. It will be $36 million in 2007. We are keen on expanding by productising our services and processes for customers. The Bangalore office will also contribute towards R&D," Gary stated.

Retail billing accounts make up bulk (over 50 per cent) of Intec's revenues and is the fastest growing segment. In the last six years, the company acquired 10 companies and now has footprints across all continents.

Last calendar year, the company's revenues stood at $216 million. Analysts estimate the firm's revenues to touch $250 million in 2007 with more customers signing up deals, particularly in Asia.

In India, the company services telecommunications operators like Bharti Airtel, Reliance, VSNL and Hutch for their various operations.

"We expect more deals in India since the telecommunications sector is witnessing rapid changes. The situation is similar in other Asian nations. We expect Asia to drive the business," Bunney said.