iGate plans to hire 3,500 this year

 IT firm iGate has said it is targetting $900 million revenues over the next five years from iTOPS (integrated Technology and Operations) business that will be the key growth driver for it in the coming years. 

Overall, the US-based firm is looking at $3 billion revenues by 2017, from over $1 billion at present, iGate CEO Phaneesh Murthy told PTI from Freemont, California. 

"We are seeing increased acceptance of our outcome based model among both existing customers as well as the prospects that we are talking to. Currently, about 10 per cent of our business comes from outcomes based model. We would like this to go up to 30 per cent in five years," Murthy said. 
He said iGate's intent is to achieve faster growth, with focus on signing large deals. "We are currently in the midst of two such large $100-million-plus deals and our target is to see a closure on at least one of these two deals this year". 

On the earnings front, Murthy said he wanted iGate to be the best earnings company in the industry in five years. 

Asked about hiring for this year, given the slowdown in the industry, he said iGate plans to recruit 3,000 persons this year in addition to its existing employee base of over 27,000. 

So far this year, Manufacturing, Retail, Distribution and Logistics (MRDL) have been a key growth driver for iGate. "We are seeing a lot of bump ups here in the MRDL space." 

On the scenario in BFSI (Banking, Financial Services, Insurance), the single biggest vertical for the Indian IT industry, he said he expects IT spending in the sector to pick up in the coming two quarters. BFSI has started a slow comeback in Q2. 

"My estimation is that the BFSI sector will recover by the end of the year," Murthy said. 

When asked about Nasscom's projection of double digit growth for the IT industry this year, he reiterated his earlier stand of this year being single digit growth for the industry. 

"For the industry to achieve double digit growth, companies have to post spectacular results in the last two quarters to offset slow growth in the first two quarters of this calendar year. 

"I do not see that happening, especially given the coming elections in the US and consequent impact on outsourcing and with Europe showing no signs of recovery in the near future." 

He was more bullish on prospects for 2013. "I expect the next year to be a recovery year for the US economy and as a result from an Indian IT industry point of view, next year would be a better year than 2012," he added.