Zensar Technologies

For Zensar and its CEO, Ganesh Natarajan, the current year is one earmarked
for consolidating the different centers in Pune from where it is now operating.
From its existing five centers, the company plans to expand with three more
centers at Kalyani Nagar, Koregaon Park and Kharadi IT Park. The Kharadi center
would house the BPO operations that Zensar started through its acquisition of
Suntech Data Systems last year. It plans to increase the number of people here
from 120 to about 250-300. On the software services front, Zensar plans to cross
the 2,000 mark this year. At Rs 267 crore, Zensar is in fact the largest IT
company from the city, leaving aside the MNCs who run their development centers
from the city.

Recently, Zensar has formed a JV with a Chinese software firm Broadengate in
Shenzhen. While Zensar holds 51% stake, the rest belongs to Zensar in the new
entity called Zensar Technologies (Shenzhen) Ltd. The JV is expected to generate
revenues of $1 million this year, but this is expected to grow to nearly $25
million in three years time. "Not only will it help us, but Zensar China
will boost Shenzhen’s bid to become a major global outsourcing center. Zensar
China will be a multi-million dollar Chinese corporation, adding tremendous
value to the Shenzhen economy, generating employment and making the city a major
outsourcing destination in the world," says Natarajan, an iconic figure in
the Indian IT industry, the man with the Midas touch for companies like Zensar
and Aptech.

The company has chosen the inorganic growth route in 2004-05 by means of
M&A activities, he says. It has already set aside a kitty and a dedicated
team for this purpose. This fiscal, it is likely to acquire a US company focused
on retailing and financial services that will add $15-20 million to its topline.
Next year, it plans to acquire more US companies for its BPO operations. By all
accounts, the company is currently on a steady financial wicket, with balanced
distribution of revenues between the US and Europe at about 53% and 34%
respectively, good client addition and steady rise in ODC customers. At present,
it has seven ODC relationships with recognized names such as Cisco, P&O
Nedlloyd, National Grid Transco and Fujitsu.

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