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BFL Software to set up shops in US, Japan

This will be in addition to its existing software development centres in the country. Baring India Investment Limited, a part of the Netherlands based ING Group, holds a 52 per cent stake in BFL Software.

T O D A Y

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In its first ever investor conference, BFL Software President and Chief Executive Officer B V Venkatesh said the company is also working towards obtaining the SEI Level 4 certification under the CMM Model.

Outlining the company's plans, BFL Software Associate Vice-President R Mohan said it is targeting a turnover of Rs 2.25 billion by 2000-2001, of which Rs 650 million would come from onsite services.

The company has planned to increase its turnover from Rs 520 million during 1997-98 to Rs 1 billion by the end of the current fiscal.

This is slated to rise to Rs 1.5 billion by 1999-2000.

At present, the company's top five customers contribute 80 per cent of the revenues and it derives an estimated 85 per cent of its business from the US.

"The large dependence on one market and few customers is our weakness. We were getting substantial business from Korea and Malaysia. But due to the South-East Asian crisis the share from the region has come down," Mohan said.

BFL Software, which has software development facilities located only in Bangalore, is looking at other places in the country and abroad to expand its operations.

In addition, the company has also announced its intentions to reduce its dependence on income from services by venturing into products.

In fact, the company has projected that its products business will contribute an estimated Rs 40 million to its turnover by 2000-01. The advanced centre of excellence, which the company is setting up in the US, will help it move up the value chain in terms of services with a higher value addition.

The company estimates that this centre will contribute Rs 100 million to its turnover by1999-2000, which will go up to Rs 300 million by 2000-01.

- Compiled from the Indian media

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