ICICI Infotech acquires Insyst for $10 million

Indian-based financial and IT services player, ICICI Infotech, has entered the Middle East market with the acquisition of Insyst Technologies.

  • E-Mail
By  Matthew Southwell Published  December 11, 2001

|~||~||~|Indian-based financial and IT services player, ICICI Infotech, has entered the Middle East market with the acquisition of Insyst Technologies. The deal, which is worth approximately $10 million over the next three years, will enable ICICI to leverage Insyst's local customer base and market knowledge as it seeks to expand its international operations.

Through the acquisition, ICICI gains access to Insyst's Orion ERP, Premia Insurance and Merlin SMB suite offerings, which address hereto uncovered market segments for the Indian software giant. At the same time, Insyst will benefit from ICICI's services business as it looks to win larger projects.

According to Hari Padmanabhan, president & CEO, Insyst Technologies, the combined company is looking to take both its product set and expertise international as it targets both the US and South East Asia markets.

"The deal brings together Insyst's product development expertise with ICICI Infotech's established services business... we're currently working with teams to see how we can take these products aboard," he says.

The entrance of ICICI to the Middle East market is not without precedent as a number of Indian IT players are investing in the region. Tata's IT consultancy arm already has a presence here and Wipro Infotech signed up with Computer Associates earlier in the year.

Although Gartner Group suggests that the current military action in Afghanistan will undoubtedly effect the Indian IT market, it believes that its software and services companies "will remain viable and attractive service providers."

Sangeeta Gupta, vice president of the National Association of Software and Services Companies (Nasscom) concurs, and says that Indian companies are actively looking for new markets, especially in light of the US economic downturn.

"For the last three years the Indian software market has focused its exports on the US. As the industry has grown however, there has been the opportunity to look at new geographies so [Indian companies] have been looking at Europe, the South East Asian market and the Middle East. The US downturn has precipitated the need to do this more intensively," she says.

At the same time, Gupta adds, the Middle East is making significant overtures to India's leading technology players as it looks to fuel its own IT growth. "The Middle East market, especially Dubai, Oman and Saudi Arabia are coming to the Indian companies and telling them what their local markets have to offer," she says.

With regards to the future, the vice president is predicting yet more purchases and partnerships, especially in government. "Government is the biggest buyer and to get in on these deals [Indian companies] need partners," she says. As this trend continues, Gupta believes that "the Middle East will continue to attract more and more Indian IT companies."||**||

Add a Comment

Your display name This field is mandatory

Your e-mail address This field is mandatory (Your e-mail address won't be published)

Security code