Zensar plans pacts to tap overseas markets

Pune-based Zensar Technologies, an IT service provider, plans partnerships, joint ventures (JVs) or acquisitions to strengthen its focus in the language markets of Brazil, Japan, South Africa and Germany in the next three months.

"We are looking at a combination of JVs, alliances or acquisitions of up to $3-4 million to accelerate our growth in the language markets of Brazil, Japan, South Africa and Germany," said Ganesh Natarajan, deputy chairman and managing director.

Zensar already has a strong presence in China with a 100-people offshore delivery centre. It will replicate this model beginning with Brazil. "In the next three months we will scale our operations in at least 2-3 language markets," he said.

Last month, Zensar acquired ThoughtDigital, a systems integrator which specialises in Oracle Apps and is based out of New York, in an all cash deal. It is one of its biggest acquisitions till date valued in the range of $25-30 million.

With the acquisition, the company intends to become one of the top 10 Oracle organisations, globally.

"The total offshore Oracle market is estimated at $1.5-2 billion and we are targeting 5 per cent of this or $100 million revenues from Oracle in the financial year 2008-09," said Natarajan.

In past Zensar had acquired OBT, a Hyderabad-based SAP consulting company, and Seacom solutions in Pune to strengthen its retail offering. The company will inaugurate its global offshore delivery centre in Poland in May, said Natarajan while sharing that training of 20 employees for the same is currently on.

Zensar had given a revenues guidance of over Rs 550 crore for FY07 and profits of over Rs 50 crore in its third quarter results and plans to be a Rs 1,000- crore ($230 million) company with over Rs 100 crore profit by FY09.

"By FY09 retail will contribute to $40-45 million of our overall revenues, Oracle will be a $100 million practice, and migration will be a $15-20 million practice constituting to 75 per cent of our overall revenues," said Natarajan.