Syntel to invest $30-35 mn

Syntel Inc, a player in the KPO segment, is planning to invest around $30-35 million (Rs 150-175 crore) in 2009, majority of which is expected to be pumped into in India to create new facilities and upgrade the existing ones. The company which reported 22 per cent in revenue in 2008, had set revenue guidance for 2009 of $385 million (around Rs 1,920 crore) to $425 million (around Rs 2,125 crore).

Speaking to Business Standard Keshav R Murugesh, CEO, Syntel Inc said that Syntel’s capital investment in 2009 is expected to be between $30 million and $35 million, the similar amount which was spent in 2008 in India. The majority of this spend relates to company’s second growth phase in Pune Campus which came online during the first quarter, and the launch of our new Chennai campuses scheduled for later this year.

Phase 1 of Chennai campus will have space for over 5,000 employees. In addition, Syntel continues to look at Tier 2 cities for incremental investments and future growth opportunities.

It may be noted that the company has approached the Tamil Nadu-government run Electronics Corporation of Tamil Nadu (Elcot) to allocate 25 acres of land at the Tirunelveli IT Park SEZ, promoted by ELCOT.

Company’s initial focus is to complete the two SEZ’s in Chennai and Pune.

Speaking about the company’s performance Murugesh said in 2008 company’s revenue stood at $410 million, representing 22 per cent growth compared to 2007.

Revenue from India was $12.5 million, growing 99 per cent compared to 2007. Bulk of the revenues today comes from the Western markets and India is also being focused on now as an exciting market for the future, he added.

He noted, Syntel has provided revenue guidance for 2009 of $385 million to $425 million. This range of outcomes is reflective of the current economic environment, which includes slowed decision making, reduced discretionary spending and increasing pricing pressure.

Company’s growth was broad based in terms of services (maintenance, development, KPO) and verticals (financial services, health care, insurance).

In 2008 the company had acquired 34 new clients and added over 650 people in 2008, finishing the year with 12,363 employees globally.