Xavient launches its Indian operations

US based Xavient Technologies, an IT solutions provider has started its operations in India. The company will focus on the mission critical IT needs of hi-tech manufacturers especially the electronics and semi-conductor industry.

The company is focussing on Manufacturing Enterprise Integration, Enterprise Application Integration, Manufacturing Execution Systems and Supply chain Automation. Currently the company has four US based clients that includes Asat, Read-Rite, Celetron and Flexitronics. The company has recently bagged an order worth $ 3.4 million from Read-Rite Corporation, suppliers of magnetic recording heads for hard disk drive market.

Speaking on the occasion, Rajeev Tandon, Chairman, Xavient Technologies said, "India is just the right market for a player like us, for obvious reasons like high quality resources, strong process orientation, a favorable IT environment and a significant cost advantage."

Currently the total IT services market is $ 420 billion, of which 10 percent comes from manufacturing sector. Salman Mohammed, Country Manager, Xavient Technologies said, "The manufacturing sector presents a potential of $ 70 billion IT service market by 2005. Xavient is currently targeting high- tech manufacturers and after developing a good client base we will expand to the manufacturing sector as a whole."

The company will operate through its Delhi based Offshore Development Center (ODC), which is a wholly owned subsidiary of Xavient Technologies. Currently 35 professionals are working in this ODC and the company is expecting to have 150 professionals in the next one year.

Xavient Technologies raised $ 10 million early this year from IT investors to accelerate its growth. Parts of this amount would be used for global expansion, Research and Development and in building brand equity. The company has invested half a million dollar in ODC in Delhi and rest in recruitment of professionals and setting up of infrastructure. The company will invest $ 10 million over the next three years in India. The company has generated revenue of $ 2.2 million in this calendar year and is expecting to generate $ 10 million by December 2002.