Cigniti expects to grow between 35-40% organically next year: CV Subramanyam
22nd February 2013 01:18 PM
In an interviewwith Myiris.com, CV Subramanyam, CMD, Cigniti Technologies says, ''Cigniti expects to grow between 35-40% organically next year. We are also looking for inorganic growth opportunities which should help us to grow faster.''
How do you see overall industry outlook going into FY14?
I believe 2014 will be stable and Indian IT industry will continue to grow around the 12-14% growth rate. In the long term, Indian IT industry will broadly reflect the global growth rate of 6-8%. However, if the government encourages software product companies, we can sustain current growth rather for maybe another 10 years of so.
What is your wish list for forthcoming Budget?
The USD 100 Billion IT industry has become a large component of India's GDP and deserves attention to ensure it can continue to grow and contribute to the country. The future of Indian IT is in creating IP and the true value of R&D.
> Litigations of transfer pricing and interpretation of taxes on IT services rendered including onsite services are counterproductive to the growth of IT industry. These bottlenecks can be overcome by simple transfer pricing norms.
> Clarity on valuation and capitalization of IP creation activities will reinforce the R&D done by companies like Cigniti which face a complicated tax credit mechanism.
> Improved debt funding to IP driven SME segment within IT will substantiate IT growth including job creation. Imagine the tax collection for the government if the financial policy encourages the next Google or Facebook to emerge from India!
Could you share outlook for the company? What is your growth target for FY14?
Cigniti is very excited about the momentum we are seeing in the market. Cigniti expects to grow between 35-40% organically next year. We are also looking for inorganic growth opportunities which should help us grow faster.
Will you elaborate on your current and future capex and expansion plans?
Cigniti expects to invest heavily in R&D and in building test labs for mobile, cloud and performance.We expect to expand our Hyderabad office as well as setup a new near-shore delivery center in the US.
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