Syntel to invest $35 Million in India this year
By siliconindia   |   Monday, 16 February 2009, 21:49 IST   |    1 Comments
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Chennai: As part of expanding operation of its offshore centers in Chennai and Pune, the U.S. based software company Syntel will invest $30-35 million in India this year. Moreover, the company is also planning to acquire land banks in other Indian locations that might be incremental capital expenditure spend of around $5 million at this stage, reported BusinessLine. Talking about the company's fourth quarter and annual financial results, Keshav R. Murugesh, President and CEO of Syntel said, "We are creating all the capacity needed to be ready for a turnaround once the current economic uncertainty disappears." The company expects that the phase one of Syntel's Chennai special economic zone center would be ready towards the third quarter of this calendar year. The 29-acre campus will consist of three software blocks with 5,100 seats capacity, a training block, a cafeteria and a welcome block, while the company will build two new blocks in the Pune SEZ. As per the estimates in 2008, Syntel has 12,232 employees globally, an addition of 654 people over 2007. While the bulk of the hiring was done in India, Syntel also hired key client facing employees in Europe and the US. The company's fourth quarter revenue increased 11 percent to $104.7 million compared with $94.0 million in the previous year. Revenue for the whole year increased 22 percent to $410.4 million ($337.7 million). Syntel's guidance for the year 2009 is $385 million to $425 million in revenue. "Our performance is reflective of the overall economy and the IT KPO services industry in particular. The demand softness continues to be our number one business challenge as clients are either delaying outsourcing positions or aggressively looking to reduce costs," added Murugesh

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