Move aimed at increasing offshore revenues
US-based Intelligroup Inc, a provider of strategic IT consulting, application management, support and implementation services, is betting big on infrastructure outsourcing to garner a higher offshore revenue mix, said company’s senior vice-president (global marketing and alliances) Alok Pant.
“In today’s environment, the major driver for most companies is cost take-outs, especially from infrastructure such as data centres, networks and printers. Customers are now taking a hard look at taking costs out of these and infrastructure is on the top of their lists. This is where we are set to grow,” he told Business Standard.
The $157-million (approximately Rs 785 crore) company, which has its global delivery centres in Hyderabad and Bangalore, had witnessed an onsite-offshore revenue mix of 70:30 in the 2008 calendar year. The company employs 2,200 professional globally, of which 1,700 work out of its India centres. Products business including SAP and Oracle implementation currently contributes about 45 per cent to IntelliGroup’s overall revenues, while infrastructure outsourcing accounts for less than 10 per cent.
Pant said offshoring in general helps build stickiness with the customers besides increasing margins. “Economics makes sense. We have increased our offshore revenue mix over the last one year and our goal is to drive more revenues from offshore this year,” he added, while declining to share further details.
According to a Gartner report, the global market for infrastructure outsourcing that includes remote infrastructure management (RIM) and infrastructure monitoring is estimated to touch $300 billion by 2012 from $200 billion in 2008.
Intelligroup, whose core competency lies in life sciences, consumer products, high-tech and manufacturing verticals, has 300 clients at a given point of time a year, including about 20 in India. It is currently looking at approaching its existing clients to its infrastructure outsourcing offerings, to start with. At present, the company has 30 clients in infrastructure monitoring space, including two – Danish seafood supplier Royal Greenland and a US-based fabless chip maker – for RIM services.
“We are in talks with two US-based hosting services providers – NaviSite and AT&T – and are currently chalking out ‘go-to-market’ strategies with them to aggressively push our infrastructure outsourcing offerings,” Pant said.
The Andhra Pradesh government had allotted four acre to Intelligroup in the emerging IT hub at Kokapet on the outskirts of Hyderabad, where it plans to build its own campus that could accommodate about 2,000 professional.
The company is awaiting the state’s nod for taking up the development work on the land. Phase-I of the project would house 600 employees and the company plans to start moving into the new campus in six to nine months from the date of commencing work on it. The Hyderabad campus would primarily cater to the insurance sector.
