Demand for offshore services likely to progress: Syntel

Syntel Inc, a global information technology services and knowledge process outsourcing (KPO) firm, expects demand for offshore services to continue to progress in 2010.

"As we look forward into 2010, we are optimistic that demand for offshore services will continue to progress," Syntel's Chairman Bharat Desai told PTI here.

"We anticipate that our clients' budgets will remain relatively flat in 2010. However, we believe that a larger share of their spending will be allocated to offshore partners. Currently, our clients remain comfortable moving forward with cost-reduction initiatives and are increasingly willing to discuss strategic technology and process-related investments," Desai said.

Syntel registered a 12 per cent jump in its revenue at $117.8 million (Rs 549 crore) in Q4 of 2009 against $104.7 million (Rs 488 crore) in the year-ago period. It also saw 12 per cent rise in its sequential revenue from $104.7 million (Rs 488 crore) in the third-quarter of 2009.

Sequential revenue improvement was driven by broad-based growth across verticals and service offerings, and by about $6 million (Rs 28 crore) of short-term discretionary project work.

During the fourth quarter, applications outsourcing accounted for 75 per cent of total revenue, with KPO at 17 per cent, e-Business contributing 5 per cent and TeamSourcing 3 per cent.