GSS America to set up Rs 66cr offshore centre in Hyd

GSS America Infotech Limited, a Hyderabad-based enterprise application integration (EAI) and infrastructure management services (IMS) company, is setting up an offshore development centre in Hyderabad, its third in the city and fifth globally, at an investment of Rs 66 crore.

The move is part of the company's efforts to scale up its capabilities to address the increasing offshoring work.

"We have identified an IT park building at Hitec City for the offshore development centre with a 1,000-seater capacity, which would take our total headcount in Hyderabad to 1,324. We expect to fully occupy the facility in the next three to four months," Ravi Shankar C, chief financial officer, GSS America, told mediapersons here on Monday.

Stating that the company had plans to penetrate the European, West Asia and Far Eastern markets for providing EAI and IMS services to the retail and oil sectors, he said they were looking at entering into joint venture partnerships with companies in these markets.

"We have opened our offices in Dubai and Singapore recently, while we are currently studying the IT services requirements in the European market," he said.

To enhance its position as a key player in the global IT solutions and services industry through the inorganic route, Shankar said the company was planning to acquire companies overseas.

"We are currently in talks with three companies that are into telecom infrastructure and the EAI space. We expect to wrap up a deal in the next six months," he added, while refusing to divulge more details.

GSS America had acquired US-based consulting company Infospectrum Consulting Inc in April 2006 and System Dynamix Corporation in January 2008, for $12 million each.

GSS America is entering the capital market with an IPO of over 3.4 million equity shares of Rs 10 each through a 100 per cent book building route. It intends to raise Rs 139.9 crore at the lower end of the price band and Rs 153.9 crore at the upper end.

The company proposes to utilise the net proceeds to fund its expansion, both in India and overseas, meet working capital requirement and for acquisitions. The issue opened on February 11, 2008, and closes February 15.