Financial Daily from THE HINDU group of publications
Monday, Oct 25, 2004
Syntel chalks out plans for India expansion
Pune , Oct. 24
SYNTEL, the telecommunication major, which recently revamped its global strategy, has drawn up big expansion plans for the Indian subcontinent.
These include development centres and BPO structures in Pune, Mumbai and Chennai.
Talking to presspersons, Mr Bharat Desai, Syntel's founder who recently handed over charge of day-to-day activities to Mr Keshav R. Murugesh, said the company is setting up a development centre in Pune . This facility is spread over 40 acres and the first phase with 3,000 seats will become operational by August 2005.
About $20 million (about Rs 91.3 crore) to be invested in this facility has come entirely from the Indian subsidiary of Syntel.
Syntel has earmarked a total investment of about $15 million (Rs 68.5 crore) for the current calendar year 2004.
Mr Desai said with convergence happening in the IT and BPO sectors, all the facilities (Pune, Mumbai and Chennai) that are to be developed will cater to IT and BPO needs. He said the facility in Chennai would be in the SIPCOT area, spread over 23 acres. He said Syntel recently inaugurated a 400-seats BPO operation in Powai in Mumbai. The total employee strength so far is close to 4,200 seats of which 1,700 came in from Mumbai alone.
Asked whether the existing BPO would have to shift their focus, he pointed out that outsourcing was here to stay but the industry has to evolve to take care of newer requirements that would crop up due to convergence.
Mr Desai said the next growing segment was the healthcare industry for which "Syntel would develop products and then lead the customers by pointing out that these products are already available and implement it and observe the results."
He said the company would also hit the market with new service offerings that are extensions of the current product-line. On what he would like to do after having handed over the reins to Mr Murugesh, Mr Desai said his main focus would be to identify new business areas that Syntel could enter into and take the necessary initiatives. He will also provide mentorship to leaders and act as a global ambassador to Syntel Inc.
Mr Murugesh joined Syntel about two and half years ago as the Chief Financial Officer and has now been designated as the Chief Executive Officer of the Indian subsidiary.
He will currently work out of the Mumbai office and shift to the Pune centre once it becomes operational.
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