Syntel to set up delivery centre in TN

Nasdaq-listed Syntel is to set up a global delivery centre (GDC) in Tirunelveli, Tamil Nadu, even as it is looking at expanding existing centres in Pune and Chennai. “These would be large capacity expansions and would be completed over the next few years. We will also commence operations through a delivery centre in Manila, the Philippines, later this year,” Syntel Chief Operating Officer Rakesh Khanna said. The IT and software services company has already got board’s approvals to set up the GDC in Tirunelveli, where it owns about 100 acres. The company has about 80-acres in Pune and 30 acres in Chennai. The company with an India-centric outsourcing business model has four delivery centres in India. “For healthcare Knowledge Process Outsourcing (KPO), we see a very strong presence in the Philippines, which we may not see in India,” he added. The company has earmarked a capex of about $60-65 million (about Rs 350 crore) for the year, a portion of which would be spent for expansion. Khanna, however, did not divulge the exact investments nor increase in number of seats after the expansion.

syntel“We develop our location strategy based on analysis of a number of parameters including infrastructure, government support and talent availability, and invest in emerging cities ahead of the curve. Our investment in Tirunelveli is part of this long-term strategy,” he added. Syntel, which closed the fourth quarter (December 31, 2012) with a headcount of 21,407 employees, is looking to scale up to about one lakh seats. “It would suffice to say that our workforce growth plans are closely aligned to our overall growth objectives,” Khanna said, without providing any guidance. The company, which has a presence in banking financial services and insurance, manufacturing, retail and logistics, healthcare and the auto sector, expects analytics, social media and migration to cloud, to bring in business.

-Hindu Business Line