Tata Infotech to invest in BPO
By siliconindia   |   Tuesday, 01 October 2002, 19:30 IST
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MUMBAI: Tata Infotech said Tuesday that it would invest in business process outsourcing segment. Farrokh K Kavarana, chairman, Tata Infotech, told a gathering at the company’s annual general meeting in Mumbai said he would not be able to divulge any details on the size and collaborations for the venture. “But we are seriously contemplating entering the BPO,” he said "Tata Infotech has been in the business of IT services. This business grew by 29 percent against IT-enabled services business that grew by 77 percent in 2001-02. Hence, we will be looking at shifting our focus to IT-enabled services," said Kavarana, while speaking to shareholders. The company, whose businesses currently includes System Integration, Electro- mechanical contract manufacturing and education services, will be looking at stimulating its bottomline growth. In 2001-02, the company focused on manufacturing services division, registering a growth of 46 per cent. Revenue from exports represents 93 per cent of this sector`s total revenue and it grew by 49 per cent to clock at Rs 37.68 crore from Rs 25.30 crore in 2000-01. There has been an 8 per cent decline in the revenues of Tata Infotech and its net profit has fallen by 26 per cent. The decline has been attributed to the bad performance of the company’s System Integration and Educational services businesses.

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