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Value Point diversifies into BPO and software development

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DQC Bureau
New Update

Bangalore-based systems integrator Value Point Systems has diversified into the field of software development and business process outsourcing (BPO). The company has created two business entities - Sarvatra Software and Source Hub - to look after these two activities respectively. It has also added about 120 people for these two divisions. 

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So far Value Point's business used to largely come from selling solutions from HP, Microsoft, Intel and Veritas. The company

posted a 65% growth by recording a revenue of Rs 33 crore in FY 03-04 as against Rs 20 crore in FY 02-03.

Elaborating on the rationale behind this diversification move, RS Shanbhag, Director, Value Point Systems says, "We have been servicing a number of MNC clients through our SI business and there was a significant trend of them outsourcing many of their activities. It was then that we saw an opportunity to meet these needs and hence put in place our own BPO outfit." Currently, Source Hub is providing outsourcing solutions in the field of legal, insurance and healthcare.

Sarvatra Software, on the other hand, has an offshore development model and the handles US clients for a wide range of customized application development. The company has already done a billing of about $1,00,000 so far in this business. For Source Hub, the earning has been about Rs 75 lakh ever since it started the billing about three months ago. 

GOLDIE

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