MphasiS eyes $1 bn mark with fresh strategies,

July31, 2001

MphasiS, an Interactive Integrator and a software solutions and services company formed by the merger of MphasiS Corporation and Bangalore-based BFL Software Ltd last year, aims to become a $ 1 billion company within the next five years and has charted out some aggressive strategies to meet its ambitious goals.

"We are looking at different growth strategies and have outlined a couple of business plans which will help us to become a $ 1 billion company within the next five years. In fact we have started looking at markets other than the United States and Europe and are consolidating ourselves to become a truly global company," Jeroen Tas, president, MphasiS, told in an exclusive interview.

The company is looking at setting up development centres in Mexico and Shanghai as it believes that the market is huge in these two regions and that much of local expertise ( read language) is needed to become a dominant player in the region.

"Though we have about 11 development centres in four countries, I think that there is a huge Chinese and Spanish speaking market which we need to address. So there is a definite plan for us to set up development centres in these two places and target the banking sector which is growing tremendously in these two regions," Tas said.

The company is also strengthening its position in the Japanese market by setting up an office and will come up with a subsidiary later on. It is also looking to set up similar offices in the Middle East, South America and also expand operations in the European market.

"With our entry into the European market by means of a development centre in the Netherlands we are looking at expanding ourselves to the United Kingdom and then eventually Germany. Right now we are looking at organic growth for our expansion and then will look at strategic alliances and acquisitions as and when it is needed," he added.

Described as "heavy duty integrators", MphasiS enables its clients to transform their existing operational systems to truly interactive business systems. These solutions are custom tailored for the financial, logistics and technology verticals.

"Our key value differentiators are globality, Architecture Practice, domain expertise, certified quality processes, strong development bandwidth and result-focused engagement models. Our superiority in CRM, transactions processing, logistics and supply chain management makes that crucial difference to clients' businesses," Tas explained.

In the solutions space MphasiS provides - Functional and Technology architecture; Delivery of third generation e-Solutions; Transformation of Legacy Applications. In the services space it offers collaborative sourcing, MphasiS BPO, MtesT, Web Design and Technology.

Only last month, the company raised Rs 45 crore through private placement with Chrysalis Capital taking a 7% stake in the company. "We will be using the funds not only to strengthen our cash and working capital position but also for capital expenditure in MphasiS BPO - our subsidiary that is focused on Help Desks and Call Centres," Tas said.

The company is looking to achieve a turnover of $85 million this fiscal, which it revised from $110 million earlier as a result of the current US slowdown.