Value Point diversifies into BPO and software development

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 called Sar-vatra Software and Source
Hub, to look after these two activi-ties respectively. It has also added about
120 people for these two divisions. So far Value Point's business used to
largely come from selling solutions from HP, Microsoft, Intel and Veritas. The
company posted a whopping 65 percent 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 said, "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 provi-ding 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 applica-tion development. The
com-pany 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

Bangalore