ITC Infotech to integrate verticals

Reworks strategy after introducing media, transportation units

ITC Infotech "" a fully-owned subsidiary of ITC Group "" is reworking its business strategy by enhancing capabilities in newer verticals such as new media and transportation.

Besides, the company is integrating existing verticals under three different clusters to be headed by separate heads.

By introducing efficiency in delivery capabilities, the company is targeting $100 million revenue in the next couple of years from the current $74 million.

"After adopting a verticalised organisation structure, we witnessed several positive trends such as acquiring strategic customers and enhanced value delivery to customers. In line with our strategy, we have reorganised the verticals and horizontals into three clusters," said Sanjiv Puri, managing director, ITC Infotech.

ITC Infotech, which leverages parent company's domain expertise, focuses on verticals such as consumer packaged goods (CPG) and retail, manufacturing, travel, hospitality, banking, financial services and insurance.

With the reorganisation, the first cluster will be known as CMEE and will include CPG & retail, manufacturing, engineering services and enterprise solutions.

THT "" the second cluster "" will have travel, hospitality and transportation and the BFSI will be the third cluster. "This empowers sharper focus on capability building and customers needs," Puri added.

ITC Infotech has been growing at a CAGR of 65 per cent over the last seven years. In March 31, 2007, the company, which corners major chunk of its revenue from Europe, garnered $73.6 million, an increase of 16 per cent compared with previous financial year.

Analysts said by the dividing the verticals, the company was positioning itself for bigger opportunities in the future and to take the company into the next phase of growth.

The company recently forayed into some newer verticals. Earlier, the company was offering IT services to travel and hospitality verticals.

Recently, it has added transportation and new media.

"We have increased the number of verticals. So while increasing our number of verticals, we created the cluster to still have manageable management unit which have better integration and synergy," said Khem Aithani, vice president, THT cluster.

On way to its achieving the $100 million mark, the company is strengthening its vertical capabilities by creating solutions around the areas of its focus.

"We are looking at the challenges that the airlines industry is facing and creating IT solutions around those to solve those problems," added Aithani. The company has identified areas like e-ticketing, load balancing and loyalty and sales analytics to create software solutions.

ITC Infotech employs about 2,300 people, a majority of which are located in its development centres located in Bangalore and Kolkata.

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CONSOLIDATION

The company aims $100 million revenue in the next couple of years from the current $74 million and is enhancing capabilities in newer verticals such as new media and transportation

The IT arm of hotel-to- tobacco group has reorganised the verticals and horizontals into three clusters "" CMEE, THT and BFSI

ITC Infotech focuses on verticals such as consumer packaged goods and retail, manufacturing, travel, hospitality, banking, financial services and insurance