SPI signs MoU with Comat Technologies

Mysore, Jul 2 Software Paradigms (India) Pvt Ltd (SPI), a city based Information Technology and Business Applications Solutions Provider, today signed a Memorandum of Understanding (MoU) with Comat Technologies for acquisition.

Talking to newspersons here, Chief Executive Officer of SPI, Sid Mookerji said the acquisition of Comat would double the size of its operation here and would take the total number of employees in the group to about 1000.

He said as part of the deal, SPI would take over all US and UK BPO and LPO customers of Comat Technologies being serviced from the city and about 400 Comat employees working on medical transcription, legal transcription and legal coding services would be transferred to SPI's pay-roll, once the legal formalities were completed.

The newly acquired business would be part of the 15 per cent of the total annualised revenues, the company expects to earn in 2007-2008 financial year, he added.

Mr Mookerji said the transaction allows SPI to further expand its service line and provides diversification opportunities in Europe.

Comat, however, would now be able to focus on its 10,000 IT-enabled rural kiosks and delvering a wide variety of services in the areas of government, finance and education, he added.

Comat was the first BPO-SPI unit in the city and broke ground by starting a unit in a second-tier city in the country. SPI should gain from Comat's leadership status in the field of BPO in Mysore.

In a move that would allow streamlined focus on its successful rural ad e-governance business, Combat would divest its BPO activities in the city.

Ravi Rangan, Chief Executive Officer of Comat said the acquisition allows Comat to focus its resources on emerging rural markets. We hope to break new ground and deliver a wide range of services in the rural markets and also to build capacity to deliver BPO services from these locations, he added.

Mr Rangan said the move promises to lend a new dimension to Karnataka's IT map and gives the long awaited push to Mysore IT.

UNI