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KMG to widen business focus
Wed, Jul 23, 2003
Source: Economic Times
Bangalore: KMG Infotech, a provider of software services to the insurance sector, is open to acquisitions to increase its service offerings and geographical focus.
The company sees a foray into healthcare as a natural progression from its current focus and is also looking at new markets such as the Asia Pacific to expand its reach.
Mr Rahul Gupta, managing director, KMG Infotech, said that the company focuses on the American mid-market property and casualty insurance providers. According to him, the entire insurance sector is estimated to be 10% of the $3 trillion economy. KMG's focus is on companies with revenues of over $1 billion.
However, Mr Gupta admitted that given the large size of their target market, the company had only scratched the surface of the IT outsourcing business available.
Currently the Indian operations has revenues of Rs 10 crore and KMG expects this to double to around Rs 20 crore in a year.
Its US operations, based in New York had revenues of $10 million.
The company also expects to increase headcount across its development centres at Delhi and Bangalore by 100% to approximately 200, besides opening an office in Kolkata.
The firm has a centre in New York that focuses on project initiation, analysis, design specification and final testing.
Referring to the geographical expansion, Mr Gupta said KMG recently expanded into the European market, with the take-over of a German firm called CSS.
Mr Gupta added that despite the entry of private firms into the Indian insurance market, KMG remained cautious on making a foray due to the relatively nascent nature of the market.
He however claimed that KMG had spoken to most private insurance providers in the domestic market. The firm's customers include insurance providers such as Fairfax, AIG and RLI.
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