Adith Charlie, Mumbai, February 16, 2009
The Hindu Business Line
Zensar Technologies, promoted by the RPG Group, expects to almost treble revenues from its India business to Rs 100 crore by expanding into new business segments over the next three years.
The company is evaluating expansion into three new segments of healthcare, supply chain and logistics and e-governance, Ganesh Natarajan, Vice-Chairman and Managing Director of Zensar Technologies, said on the sidelines of the Nasscom Leadership Summit, which concluded on Friday.
As on the quarter ended December 31, 2008, the firm had generated Rs 35 crore from its domestic practice. The domestic IT services market is pegged to grow to $10.73 billion by 2011 at a compounded annual growth rate of 23.2 percent, according to Gartner Inc report.
Though major software companies are strengthening their tentacles in this space, there are several execution-related challenges on the ground level, according to analysts. One of the major issues, especially in dealings with public sector entities, is getting payments on time.
However, Natarajan is not too concerned. “Well, there are issues related to payments but it is not a matter of much concern, especially if you are working with reputed and professional companies.” However, the situation could go out of hand for small and medium software companies as payment delays would have a more profound impact on their cash flows.
“SMEs will always have these complaints. Even SMEs that work with large IT vendors have payment-related issues,” said Natarajan.
On the current macro-economic environment, Natarajan said his clients are now prioritising their IT spends on a short-term basis. “The main problem is that nobody is able to predict how long the recession would last. Hence, whatever planning that the customers are doing is on a quarter on quarter basis or month on month basis,” said Natarajan.
Since no market can offset the slowdown in America “all of us have to hope and pray for an American recovery,” he said.
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