Nasdaq-listed Syntel Inc is to invest over Rs 300 crore (Rs 3 billion) in India, a majority of which will be in its Pune centre, and double its heacount to around 10,000 personnel in the next three to five years.
The custom outsourcing solutions provider intends to make the investments through its subsidiary, Syntel India and would be used for ramping up of its three development centres Pune, Chennai and Mumbai.
"We are delighted by the success of operations of our Indian delivery centres and have also gained tremendous customer confidence over the last one decade," Syntel chairman and chief executive officer Bharat Desai said.
"An intention to grow the business in the country has also resulted in the company looking at India as an important business and outsourcing destination," Desai added.
A majority of the investments would be in Pune and Chennai, while some of it would also "overflow" to Mumbai, he said.
He, however, did not divulge the specifics of the investments earmarked for each of the cities.
The custom outsourcing solutions major is also planning to increase its total employee strength to around 10,000 from the present 5,000 in the next five-year period. The additional headcount would be based out of its newly set up 3,000 seat facility, spread over a 40 acre campus at Talewadi IT park in Pune.
The facility would also be ramped up by another 2,000 seats in the next five year period. Syntel, which has acquired over 30-acres in Chennai's IT corridor, is also planning to add another 5,000 seats on completion of the facility. This increase in capacity will also utilise the expected addition of employees.
The work on the campus will begin in January and the first phase of the facility is expected to ready by end of 2006. The company, which focuses on high-end business process outsourcing for financing and accounting among others, is also looking at tier-II cities in the country to expand operations.
Syntel is also hoping to achieve $1 billion in revenues and $5 billion in market capitalisation by year 2010. Desai also said that the company is in line with its target of achieving $1 billion in revenues and this would be achieved within the next five years.
The company had posted revenues of $58.5 million in its third quarter of 2004, up from $46.6 million posted during the same period of previous financial year.
Spreading Wings
