NetEnrich to set up 2nd centre in Andhra

City-based NetEnrich, which provides software as a service (SaaS) to overseas clients, would set up its second centre in Andhra Pradesh during this financial year at an investment of about $10 million (Rs 50 crore).

Speaking to Business Standard, chief technology officer Varma Kunaparaju said they were looking at Visakhapatnam and Vijayawada as possible locations for the second unit. NetEnrich currently has a unit in Hyderabad employing about 170 professionals.

The expansion was needed to cater to the increasing number of clients abroad, he said, adding the company was gearing up to meet the technology demand from small and medium business units abroad.

The 35,000-sft premises, to be funded from internal resources, would accommodate about 1,000 people in three shifts. The company would add at least 400 people during this financial year, and upon reaching full capacity would need a recurring expenditure of about $ 25 million (Rs 125 crore) to meet the people costs.

“The revenues from the clients would be sufficient for meeting the recurring expenditure,” he said adding the company had over the last five years invested about $9 million (Rs 45 crore) in developing various technologies including its patented remote infrastructure management (RIM) technology.

Apart from Hyderabad, the company has delivery centres in the US and Japan. It entered into a business agreement with Ingram Micro Inc to deliver RIM services to value-added resellers and allow them to create their own managed services.