The Hindu : Business : iGATE expands facility in Bangalore

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Friday, Oct 30, 2009
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iGATE expands facility in Bangalore

Special Correspondent

Phaneesh Murthy

BANGALORE: Higher discretionary spending on IT by customers since last quarter indicates the beginning of revival and iGATE, the integrated technology and operations company, expects to increase its revenues in the quarters ahead, company Chief Executive Officer Phaneesh Murthy said here on Thursday.

Speaking to reporters at the opening of the company’s Rs. 65-crore additional global delivery facility on a 13.5-acre campus here, he said iGATE had recorded a 4 to 4.7 per cent growth in the last two quarters, ahead of the industry average.

“Banking, financial services and insurance and health care, followed by BPO are the sectors where further growth is likely,” he said.

“IT spending may grow in 2010. Talking to most customers, we find their IT budgets in the year ahead will be higher by at least 2 to 4 per cent and the conservative estimate of a flat growth is unlikely, going by trends,” he said. In the case of iGATE it had been a mostly non-linear growth, based on its own business model, Mr. Murthy said.

“While the U.S. may show signs of a revival, it is not related to fundamentals and not related to improving employment.

“Eighty per cent of our customers are still based in North America,” he said.

The new facility can seat 1,050 more employees, Mr. Murthy said.

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