BSI’s IT spend to be 3% of revenue in 2011-12

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BSI’s IT spend to be 3% of revenue in 2011-12

Nagesh M Joshi, Senior Associate Editor

An information technology (IT) services company - Blue Star Infotech (BSI)’s IT spend in 2011-12 is expected to be 3% of its total revenue. BSI’s total operating income

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for half year was Rs 62.4 crore. Assuming that its total operating income for the year will be in excess of Rs 124 crore, its IT spend in 2011-12 may cross Rs 3.70 crore.

Suresh Iyer

BSI’s IT spend in 2011-12 will include infrastructure consolidation and business intelligence (BI) projects, among others. The IT spend will also cover replacement and renewals of software and hardware in 2011.

Infrastructure consolidation

Under BSI’s IT spend in 2011, infrastructure consolidation will be its first major project. “Being into the IT outsourcing and domestic services business, buying a variety of IT hardware and software platforms has made our internal infrastructure highly complex. Our first challenge will therefore be taking stock of the assets across the enterprise and removing redundancies,” says Suresh Iyer, executive vice president at BSI.

BSI has branches in India, Japan, UK, and USA. In India, it has presence in Bangalore, Chennai, Gurgaon, and Mumbai. The company’s IT spend on the consolidation exercise in 2011 will start with Mumbai, whereby it will reduce the number of branches from five to three and deploy virtualization for optimal utilization of server and storage resources. Currently, it is evaluating Microsoft’s Hypervisor and VMware’s vSphere for this project, as part of its IT spend for 2011-12.

BI project

Among other projects, BSI’s IT spend in 2011 will cover deployment of a business intelligence (BI) suite on top of its existing applications, Oracle E-Business enterprise resource planning (ERP) and Microsoft Dynamics customer relationship management (CRM). The company is evaluating products of SAS, Microsoft and Oracle for the BI project. “With the business growth and expansion, we feel the need to internally utilize some of the solutions that we recommend to our customers; BI is one such application,” explains Iyer.

BSI is currently using ERP for most processes, including finance, human resources, billing, time sheets, and CRM for sales and marketing, besides the helpdesk. The company’s IT spend on BI in 2011 will also include delivering dashboards to users’ desktops for greater benefits.