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In line with many of its Indian peers, US-based information technology (IT) and professional services firm Collabera is revamping itself amid changing market environment, as the company aims to top annual revenues of $1 billion over the next three to five years.
In 2012, Collabera had revenues of $456 million, and the company is hopeful of posting a topline of around $550 million in 2013.
The New Jersey-headquartered firm was set up in 1991 by Hiten Patel, an American of Indian origin. The company started out as a staffing solutions provider, and entered IT services segment in the year 2000. Over the past 13 years, the company has added an impressive list of clients, which includes Fortune 500 companies across banking and financial services, retail, telecommunications, media, energy, technology and manufacturing industry verticals. Collabera currently had a total of 9,000 employees, of which 35 per cent are based out of the company's three facilities in India, located at Bangalore, Baroda and Trivandrum.
Earlier this year, Collabera hired Raj Mamodia as its chief executive officer, from Cognizant Technology Solutions, where he was part of the global leadership team.
Having spent a few months with clients and employees, Mamodia now believes “there is no attraction in becoming yet another tier-II IT offshore company”. He is hence working to create a structure that leads Collabera to become a focused players in new growth areas.
“Over the last decade we have tried to integrate and build capabilities on the IT solutions front, so that we can transform this company into a potentially tier-II IT services firm. But now we do not believe in the same. Becoming yet another tier-II IT offshore kind of company does not create any significant economic value, and it does not create any significant differentiation,” Mamodia told Business Standard.
Among other things, Collabera is working to 'disconnect' its two operations – professional services and IT services, and may even de-merge the two businesses into different entities. A decision on the same would be taken by March 2014.
In the IT services business, Collabera has narrowed its focus to e-commerce, mobility and data. The company has made several acquisitions in the past to strengthen its business, including Planetasia (for e-commerce), IVL Software (for SAP product and development), and Blue Hammock (for data analytics).
Collabera is now on the look out for a few more acquisitions, for which it may spend up to $100 million. The acquisition will mainly aim to strengthen its product offering.
