3i to float a JV in China

May look at South America next

MUMBAI: Midcap IT firm 3i Infotech will woo banking, financial services and insurance (BFSI) majors in China with a joint venture company it is about to float with Vucheng Technologies Ltd there.

Details of the JV were not immediately available.

However, M B Battliwala, global head - marketing, 3i Infotech told DNA Money, “The MoU we have signed with Vucheng Technologies will now help us form a JV company and its management. Only then would the management decide on the strategic course of action.” This will take about three months, he said.

Nasdaq-listed Vucheng Technologies is about one-fourth the size of 3i Infotech and has 1,700 people on its payrolls. It provides IT solutions in areas such as web banking core banking systems, foreign exchange and treasury management, risk analytics and business intelligence.

3i Infotech offers IT solutions and services in banking, capital markets, insurance and business process outsourcing from those segments.

3i also plans to move into other geographies where it is not present as yet, such as South America and Japan. A source even said it would look at setting up a BPO house in China. But, the timelines for these could not be confirmed.

3i derives 37% of its revenues from India, 27% from the US, 17% from Western Europe, 14% from Middle East & Africa and 5% from the Asia Pacific region. It has provided a revenue guidance of $300 million for FY08.

t_amit@dnaindia.net