Perot Systems to expand India operations
By agencies   |   Friday, 13 May 2005, 19:30 IST
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BANGALORE: Plano, Texas based Perot Systems will expand its India operations to reduce costs and drive growth, chief executive Peter Altabef said. Perot Systems, which currently has 25 percent of its staff in India, will increase the headcount there by 2,500 to 7,000 by the end of the year. Turnover in its India outsourcing operations is about 24 percent, much lower than the industry average of 52 percent, the chief executive said. "People who work for us there are not back-office people," Altabef said. "They get out to meet clients and they are actively working as part of our delivery and management team." The largest U.S. based provider of outsourcing services for hospitals started Indian operations in 1996. The company originally planned to build a profitable operation and sell it, but encouraged by its success, Perot purchased the other half of its Indian joint venture. Two top Perot India executives quit in the past six months, and the company recently hired Padma Ravichander, who has worked with Oracle and Hewlett-Packard, to be head of India and Asia-Pacific operations. Perot said its staff in India has helped keep costs low. The company grew its revenue by 22 percent last year. Altabef said the company's acquisition strategy was focused on improving technology. "We do not acquire just to be larger," Altabef said. "We have a rigorous acquisition program and it's a disciplined one." The company believes stock buyback is one of the best ways to use cash. It has $262 million in cash and recently authorized a $75 million share repurchase program.

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