US-based IT firm HTC Global Services has said that it will become a billion dollar firm by 2020, driven in large part by the acquisition of CareTech Solutions Inc, which was roughly the same in size, in December 2014.
The company said that it is also talking to another US firm for a potential acquisition.
Madhava Reddy, president and CEO, HTC Global Services told Business Standard said that the IT/ITeS business of the company in 2014 was around $320 million and expects a moderate growth in 2015, which may end with revenue of around $320-330 million.
He attributed the moderate growth to the acquisition of CareTech Solutions Inc, the benefit of which will be seen 2016 onwards. Reddy noted that the average growth of HTC Global has been around 10-15%.
“We expect to reach $1 billion by 2020 and CareTech will play a significant role. Around 50 per cent of the target would come from CareTech,” Reddy said. He added that while most of the growth would come organically, HTC is in talks with a US-based firm for a potential acquisition, mainly for its data centre infrastructure. He declined to divulge any more details about the deal.
“We felt the acquisition is an integral part of our strategy of exponential growth in our chosen areas of IT (information technology) competencies and it is performing as planned. CareTech not only brought matured solution, but also a good leadership team and employee base," said Reddy.
Chary Mudumby, executive vice president, HTC Global Services (India) Pvt Ltd added that the company started implementing some of the CareTech solutions among the Indian health care players as pilot and got some good traction for the same. The company hopes to expand it in the coming months.
According to him CareTech has implemented its solutions in over 5,000 hospitals in US. CareTech, provides focused IT services and solutions to the healthcare industry, expanded HTC Global Services' footprint in the US and also broadened its range of service offerings.
HTC Global has a headcount of around 8,000 people across the globe, of which 6,500 are in IT space; of 3500 of those are based in India. Reddy said that the company will raise its headcount to around 20,000 by 2020.
The company has already set up infrastructure, including a Rs 100 crore development centre in Chennai that can accommodate up to 4,500 employees, as part of its expansion plans.