Iteamic banks on SMEs for growth

Iteamic, a privately-held city-based software services company, plans to double its revenues this fiscal by adding more small and medium enterprises (SME) clients from the US.

The company provides software solutions in the financial services, banking and insurance segments. Iteamic, which received the certificate of excellence from the Karnataka government for IT exports (2006-07) under the fastest-growing SME category, recorded a Rs 23 crore turnover last fiscal.

"We expect to reach a figure of Rs 42 crore this year. We are witnessing a 70 per cent growth from our existing clients. We are expecting a couple of sizeable deals shortly. Besides, a number of US-based SMEs with IT infrastructure budget in the range of $10 million to $20 million are eager to outsource work to India," Iteamic founder & CEO Raghurama Kote said.

Founded in 2003, the company now has 200 professionals, working on various financial products for 12 clients. "We have been making profits around 30 per cent. This year, it is likely to be around 23 per cent because of the rupee appreciation against the dollar," he added.

Earlier in the year, Nasscom included Iteamic in its list of emerging companies for the year. Recently, Iteamic secured funding from Canbank Venture Capital Fund Ltd, for an undisclosed stake. This is the company's first infusion of external funding.

"The funding will accelerate Iteamic's expansion plans and augment infrastructure, R&D and, sales and marketing initiatives. We intend to be a Rs 120-crore firm by 2010 with an employee base of 1,000," Kote said.

The company has launched BPO services for a few of its clients in the financial sector. It plans to scale up BPO operations gradually. Iteamic is looking at secondary cities like Mysore and Mangalore for growth.