Ness Tech to scale up India operations

With the key IT outsourcing markets showing positive signs in terms of demand, Ness Technologies which provides R&D services to its global clients from offshore locations, has announced to expand its Indian operations. The company which presently employs close to 3,000 people in India, has announced opening a new facility in SEZ in Bangalore with 300 seats at present to be scaled up to 600 by March 2010.

Company officials said the plan was to cross the threshold of 5,000 employees in India, even though they declined to give a time frame as to when they plan to achieve it. India is a key offshore location for the Israel-headquartered company out of which they serve their customers in the US, Europe and Israel. Presently, Indian operations make up 35 per cent of the company’s global workforce.

“Economic downturn had slowed the growth of the company, as some of our customers had consolidated the projects, and some even turned for in-sourcing. But we had the fortune to work in different geographies and with healthy pipeline, we were good enough to get back on the track on time,” said Sachi Gerlitz, president and CEO of Ness Technologies.

He said the company was bullish about the growth as the ‘worst is over for the market’. “We intend to provide more offers to our customers and clients. We have a tradition of investing in facilities and people, for increasing their technical and soft skills, so in a way it is growth for us,” he added.

Speaking on the effect of the economic slowdown on the company, Gerlitz said, “The revenues for 2009 have been impacted by the macro economic situation but we have maintained a CAGR of 20 per cent. This is because 85 per cent of new business comes from old customers,” Gerlitz added.

Ness Technologies’ SEZ facility - Ness-E-Zone — will come up over 60,000 square feet which is part of the 106 acres of notified IT/ITeS SEZ Vrindavan Tech Village in Bangalore. A unit of 30,000 square feet has been made operational in the first phase which will accommodate 300 seats. The company plans to complete the second phase of the facility by March 2010, with addition of another 300 seats.

According to Satyajit Bandyopadhyay, president and MD of Ness Technologies India, the company has invested about $1 million (Rs 4.8 crore approximately) which will be scaled up eventually.

Ness Technologies India caters to the delivery needs of clients in Europe, Israel and the US through its software product labs in Bangalore, Mumbai, Chennai, Hyderabad and Pune. Presently, it has around 60 labs.

The parent company, Ness Technologies Inc earns 16-20 per cent of its revenues from the software product development segment where delivery is carried out from India.