Business | Technology
3i Infotech's regional revenues rise to $11.3m
Indian software solutions provider 3i Infotech is becoming a one-stop technology shop for enterprises as there is a tremendous amount of businesses taking place in the Gulf, a top official said.
- By Naushad K. Cherrayil, Senior Sub-Editor
- Published: 23:32 August 19, 2008
Dubai: Indian software solutions provider 3i Infotech is becoming a one-stop technology shop for enterprises as there is a tremendous amount of businesses taking place in the Gulf, a top official said.
"We see bullish demand across the region in all the segments especially Russia, Nigeria and Gulf as they are all doing well due to high oil prices. There is a lot of value IT can add to this region when compared to other regions as the market is still immature," said Pankaj Chawla, chief operating Officer of 3i Infotech Middle East, Africa, Russia and CIS (Mearc).
He said the company recorded a strong growth in revenues from the Mearc in the first quarter ending June to $11.3 million (Dh41.47 million).
During the quarter, the company completed the acquisition of US-based Regulus Group and 26 per cent of Locuz Enterprise solutions and 51 per cent in FinEng Solutions.
M.B. Battiwala, senior general manager, 3i Infotech, said the acquisitions have created deep synergies and have significantly strengthened organic growth. Out of the compounded annual growth rate of 61 per cent over the last four years, 41 per cent has been organic and 20 per cent inorganic.
He said with respect to geographies, 34 per cent of the revenues came from South Asia, 29 per cent from US, 15 per cent from Western Europe, 14 per cent from Mearc and eight per cent from Asia Pacific.
"Primarily our area of focus is on banking, financial and insurance sectors but this year we will focus more on solutions for sovereign wealth funds due to the strong regional demand," Pankaj said.
"We are unaffected by the sub-prime crisis in US and Europe. Many of the deals are done in local currencies. With a diversified geography model, we take advantage of the growth potential in the various geographies and at the same time de-risk the business with respect to exposures to a single geography. It has helped in de-risking forex exposures to a major extent as we enjoy a natural hedge with revenues and cost in diversified currencies," Battiwala said.
"We are going through a period of uncertainty, but in short- to medium-term, I don't see any impact at all in the region. The regional economic outlook is still positive," Pankaj said.
"We have more than 600 customers worldwide, of which 400 customers are from the region and have 14 of the 18 takaful companies in the region. We expect healthy growth this year. We will be opening offices in Riyadh, West Africa and Russia," he said.
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