iGate says eyeing BPO buys

Briefing reporters, iGate Chief Executive officer Phaneesh Murthy said our target sectors haven’t changed, we are still upbeat on acquiring some operations (BPO) units as also are eyeing the healthcare sector.  Further, stating that global IT budgets would surge by 2-4 per cent in 2010 with discretionary spending going up, Murthy said the environment was better now.  iGate, he said, saw 4.5 per cent and 4.7 per cent quarter-on-quarter revenue growth in the last two quarters as against industry average of 1.5-2 per cent.

Attributing the success to its revenue model, he said around 71 per cent of the company’s revenue is not dependent on non-time and pricing revenue model, but dependent on outcome-based model.

Further, contrary to analysts’ view, he said salaries of IT professionals in India will rise by 6-8 per cent in 2010, and that it depended on the recovery the US economy sees. Revealing that iGate offered seven per cent hike to most of its employees in October, Murthy termed the projected 2-3 per cent by analysts as conservative.
In the coming financial year, he said the company would add another 1,500 employees to its headcount from the existing 6,400 across all centres including Mexico. However, he said, the percentage of campus hires would reduce considerably. iGate had offered letters to about 400 students last year and is obsorbing all of them, he added.

New facility
Meanwhile, iGate announced the expansion of its global delivery facility in Bangalore. The fourth phase of its global delivery facility is across 3,15,000 sq ft, with 1,20,000 sq ft of office area. The company has invested Rs 65 crore,  he said.

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