Netlink to set up $5 mn BPO unit in MP

Bhopal-based Netlink Software Group is planning to set up a $5 million business process outsourcing (BPO) unit in Bhopal and subsequently a one-stop shop facility or complete IT (information technology) solutions to its clients.

Currently managed by two engineering graduates from Bhopal, Netlink has a presence in the US and some European countries.

The company, started with a paltry $15,000 from Michigan in 1998, has now clients like DaimlerChrysler, General Motors, and number of other companies of repute in healthcare and automobile sector.

The company is eyeing Rs 500 crore turnover within five years and soon will become a company of 2,000 personnel from 600 now. Further, the company has plans to go public next year.

"We are planning to set up a BPO unit in Bhopal with an investment of $5 million. The state government has assured us of land in the proposed Barwai IT Park (near Central Jail, Bhopal)," said Anurag Shrivastava, president and chief technical officer of the company.

The state government has offered land also to Genpact, the BPO major, and Netlink probably will be the second company to get land in the park. Netlink has plans to enter complete service support instead of just application development.

"Global IT solution providers charge very high rates; however, we will be able to offer complete IT solutions and ERP, etc. at very low rates despite cost pressure," said Shrivastava, adding, "salaries and wages are going higher, along with dollar devaluation. We are in talks with two reputed IT companies in ERP to increase our bandwidth and service support. By the end of the year we will have 1,500 employees. We are aiming at a turnover of Rs 500 crore within five years from now."

Netlink has already acquired a company, IOC, in the US.

Although Madhya Pradesh is low on IT, a newly launched IT policy has attracted some IT companies to the state. However, the state IT department has put certain conditions like first preference to Nasscom-ranked companies in the IT park, which may hinder the growth of the ailing sector.

"It was decided earlier that we will accord preference to Nasscom-rated companies but we may allow other companies in the park if they have a good track record," said Padmvir Singh, principal secretary, IT.