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October 5, 2005 - UBICS Eyes South for Expansion

The Pittsburgh- headquartered UBICS, player in the product consulting business, is targeting the domestic market with a specific focus on the south for growth.

UBICS is the information technology division of the Bangalore- based UB group of companies. Mr. Sunil Patil, President, Global solutions, told Business Line that the focus area would be consulting practice and the targeted cities would include Chennai and Hyderabad. The Company is looking at having a workforce of about 50 in Chennai. It is expected to begin its practice by February. UBICS, which already has a presence in Bangalore, recently strengthened its unit to eight consulting practitioners. On whether the company did not want to include Kerala in its list, Mr. Patil said the Kochi market would be looked into at the end of 2006. Mr. Patil said the company would move to the UB city by the middle of the next year in Bangalore

This is a project that has been undertaken by The UB group and the prestige group. The facility once completed will be able to house all the UB companies at one place. Mr. Patil said the consulting practice in total brings in about 35 percent of the total revenue, which is expected to increase to 50 percent in three years. Of this, UBICS expects about 40 percent of the revenues to come in from the South Indian Markets.

The expected revenue from this stream will be about $ 10 million by 2008, after three years of operations. Mr. Patil said the UBICS consulting practice targeted the high transaction customer-supplier relationship. Mr. Patil said UBICS provides consulting services to Motorola, Heinz, Nortel, and Oracle.

"It is currently implementing this model with Mahindra British Telecom; it provides consulting on the web to Mahindra British Telecom and for ERP (enterprise resource planning) projects", he said. Its second client is Pune- based KPIT Cummins Infosystems Ltd. On the company’s expansion plans, Mr. Patil said Pune, which is currently the research and development center, has about 300 software professionals on its rolls and this would be ramped upto 600 by the end of the fiscal year.

Mr. Patil said the company has already invested close to $1 million for research and development in Pune and plans to double the fund.

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