Syntel to invest $ 60-65 mn in cloud and mobility this year

Syntel to invest $ 60-65 mn in cloud and mobility this year New Delhi: Nasdaq-listed software firm Syntel is planning to invest USD 60-65 million (around Rs 350 crore) in emerging verticals such as cloud and mobility during this year.

"We have increased our capex to USD 60-65 million for 2013 guidance which is in emerging verticals such as cloud and mobility," Syntel President and CEO Prashant Ranade told PTI.

Ranade added that based on current visibility levels and an exchange rate assumption of Rs 53 to the US dollar, the company currently expects a revenue of USD 780-810 million in 2013.

The company is looking at adding around 6 percent a quarter to its total headcount of over 21,000 this year. Its global headcount was at 21,407 as on December 31, out of which over 16,000 employees are in India.

The company is also planning to open a local delivery centre in the Philippines in the first half of this year and while three centres will be opened in India and one in Manila in next 3-3.5 years.
Syntel has offshore software development centres in Mumbai, Chennai and Pune.

The company which has recorded a compound annual growth rate of 18-19 percent in the last five years has given a muted guidance of 8-12 percent growth for this year due to the economic downturn.

"While in the last five years, our CAGR has been 18-19 percent, due to the economic downturn in CY12 Syntel registered growth of 13 percent. Our guidance for CY13 is 8-12 percent," Ranade said.

He added BFSI contributes 56-57 percent to their overall revenues, going forward, the company will be tapping new opportunities in healthcare, insurance, retail/logistics and manufacturing.

PTI