Intelligroup turns focus on Europe

US-based Intelligroup Inc, a provider of strategic IT consulting, application management, support, and implementation services, is planning to increase its focus on the European market.

"The move is part of the company's strategy to diversify its revenue streams from the US market in the wake of the downward-spiralling dollar. Besides, outsourcing trend is fast catching on in Europe and, therefore, we plan to strengthen our presence in this region without depending on the US market alone," Alok Pant, senior vice-president (global marketing and alliances,) Intelligroup, told Business Standard.

Intelligroup had last year acquired IGS Novasoft, a UK-based company, which had a good SAP implementation methodology, for $3 million (approximately Rs 12 crore) to translate this shift in its approach.

This acquisition brought a marquee client "� Siemens UK "� into the company's fold. Intelligroup has 300 active clients globally, of which around 50 are from Europe.

"Besides leveraging our acquisition of Novasoft, we are looking at building strong bonds with major companies in Europe. We are in talks with Hewlett-Packard (HP) and SAP to become their reseller and work closely with their sales teams there. Besides, talks are on with Microsoft UK for Duet, a co-developed software offering with SAP, to take the product to the market," Pant said.

According to him, US at present contributes 75 per cent to Intelligroup's overall revenues, which it plans to bring down to below 70 per cent during this calendar year.

Intelligroup, which follows a January-to-December calendar year, reported third quarter 2007 revenues of $38 million (around Rs 152 crore), a 17 per cent increase from $32.5 million (Rs 130 crore) in the third quarter of 2006. It clocked revenues of $125 million (Rs 500 crore) in 2006.

The company has offices at Hyderabad and Bangalore in India, and UK, US, Denmark and Japan. It employs 2,400 globally.