iGate Corp. generated more revenue last year from its overseas information technology and outsourcing businesses than it did in the U.S., the company's CEO told shareholders Thursday.
In 2005, Pittsburgh-based iGate's offshore services accounted for $138 million in revenue versus $135 million from its U.S. professional services, Sunil Wadhwani said at the company's annual meeting in Findlay.
It's been that way since mid-2004, and Wadhwani wants to continue expanding offshore, despite good profits and cash flow generated from U.S. operations.
It plans expansion in China and India. In 2004, it opened a 14-acre complex in Bangalore, India. Later this year, iGate will move its Chinese processing center from Wuxi to Dalian in the northeast, Wadhwani said. From the new location, which is fast becoming China's information technology hub, iGate will serve its Japanese clients as well as U.S. clients, he said.
The bulk of iGate's employment is in India. Of the company's 6,300 employees, about 4,300 are in India. iGate has about 200 in the Pittsburgh region and about 1,500 in the U.S. It has added about 400 employees per quarter in India over the past few quarters, and Wadhwani expects that pace to accelerate in the future.
"We plan to increase the U.S. work force as well," Wadhwani said. He did not predict how many jobs might be created in its U.S. operations.
iGate has targeted offshore projects for large companies and is focusing on U.S. and Indian markets, followed by Western Europe, Japan and Australia, Wadhwani said. The company has 32 offices in 15 countries and more than 300 clients spread over five continents.
Wadhwani wants to position iGate as one of the top two or three companies providing processing services for mortgage, finance and accounting companies. Already, the company is the single largest provider of outsourced mortgage servicing from India, Wadhwani said.
iGate finds itself in a good position with no debt and $75 million in cash, up from $64 million at the end of 2004. While the company intends to conserve its cash, it will use some money to build operations in India and elsewhere, Wadhwani said.
