iGATE to hire 500; eyes acquisition worth $30-70 mn

IT services company iGATE today said it will hire 500 professionals in the next two quarters to support its expanding operations.

"Most of the 500 people we plan to hire in over the next six months will be in India and some in Mexico and the US. They will be employed in both services in BPO areas," iGATE CEO Phaneesh Murthy told PTI.

The Nasdaq-listed company, which has been eyeing acquisitions in $30-70 million range for some time, is hopeful making it in 2010.

"We are aggressively pursuing it... We have $100 million cash on our balance sheet. We are eyeing acquisitions in $30-70 million range and we should finalise it in few months," he said. The company is looking at healthcare and financial BPO services.

There is a large pent-up demand... I think the bigger recovery is in the financial services," he said.

IGATE said its net income more than doubled to $11.6 million for the January-March quarter compared to compared to $5 million registered in the same period last year, Murthy said.

Revenue was up 29 per cent at $57.9 million for the quarter ended March 31, 2010, compared to $44.8 million during the same period last year, he added.

IGATE Chief Financial Officer Sujit Sircar said, "While we had an excellent performance in Q1 and expect revenues to grow, margins are likely to be under pressure due to increased hiring, rupee appreciation and wage inflation. Our cash and cash equivalents and short-term investments crossed the $100 million mark."

The company ended Q1 with 7,357 employees, a net addition of 447 employees during the quarter. Seven new customers were added by iGATE during the quarter.