Source: Kansascity.com

 Outsourcing provider Virtusa Corp. on Friday filed for an initial public offering worth up to $92 million.

The Westborough, Mass.-based company didn’t disclose how many shares will be offered, nor did it provide an estimated price range for its IPO. in its filing with the Securities and Exchange Commission.

The company, which provides information-technology outsourcing services, said it expects to use about $30 million of the net proceeds from the offering to build a new facility in Hyderabad, India. The balance of the net proceeds will be used for working capital and other general corporate purposes, including to finance expansion of the company’s global delivery centers in Chennai, India, and Colombo, Sri Lanka.

JP Morgan, Bear Stearns & Co., Cowen and Co. and William Blair & Co. are listed as underwriters for the offering.

The company said it has applied to list its stock on the Nasdaq Global Market under the symbol “VRTU.”

For the nine months ended Dec. 31, 2006, the company swung to net income of $15.5 million from a net loss of $625,000 for the same period in 2005.

Source: www.business-standard.com

In order, to strengthen its footprint in the emerging Japanese off-shoring / outsourcing market, Zensar Technologies Ltd, an integrated IT and BPO solutions provider, has announced a joint venture with Tokyo-based EZA Ltd. to create Zensar Advanced Technologies.  It is a transaction that will involve the transfer of all existing order books, employees, technology, and intellectual property of EZA to the newly formed joint operations.

Incorporated in 1996, EZA Ltd. brings with it over 10-years of strong industry experience in Japan, and grossed a turnover of $4.2-million in 2006.  As well, EZA Ltd. has a team that consists of 30-engineers to leverage Zensar’s off-shore abilities.

With strong infrastructure capabilities and technical expertise, over the years, it has developed products in media server, digital appliances and security space, and has customers that include NEC, Japan Railways and Unisys, including other retail customers.

EZA is now poised to enter the digital home appliances and Security markets, after having developed technology and acquiring domain expertise pertaining to mobile terminals, over its years of operation.

With the help of Zensar’s innovative Solution Blue Print Framework, the Indian and Japanese firms can capture customer requirement better and faster, by overcoming language barriers that will give the joint venture a competitive edge.

Commenting on the agreement, Ganesh Natarajan, Deputy Chairman and Managing Director said: “We are delighted that this JV demonstrates the success of our new innovative expansion model, where we are able to acquire new customers and skills in new markets without full company acquisition.  We will continue to use a judicious mix of organic expansion (Poland) acquisitions (USA) joint ventures (Japan) and strategic alliances (Brazil) in our expansion plans around the world.”

V. Balasubramaniam, Senior Vice President, Innovative Technology Solutions believes that using Zensar’s Global Delivery Platform will help provide a quick, effective scalability model that gives the best of Zensar off-shore to their global development partner community.  Moreover, Zensar’s frameworks can further be applied for model driven development, maintenance and re-engineering of software products / tools used by EZA in future.

The firm foresees immense opportunities as a direct result of the JV, which is expected to grow to $20-million by 2008-09 given its growth trajectory.