Patni Sees Onshore as a Channel to Win More Business

Patni Computer Systems has its eyes wide open about opportunities to build a strong onshore footprint in the United States. The global services firm – which generated close to $700 million in revenue last year – is hot on the onshore model and is actively seeking to expand beyond a recently opened center in El Paso, Texas.

“We are constantly evaluating locations in North America for investment,” Tony Viola, VP of Marketing for Patni Americas told Nearshore Americas this week. “This geography and locations within this country have become more attractive in the last two-and-a-half years because of what’s gone on with the economy.”

“There are certain tax breaks that you may not have gotten before” – Tony Viola, Patni VP of Marketing

The India-based provider has made regionalization a bigger focus in the last year, and clearly the combination of Nearshore/Onshore service delivery capabilities is deliberate market positioning intended to accelerate business, especially in the insurance outsourcing sector where Patni is particularly strong. About 30% of the company’s revenue comes from the insurance customers.

The El Paso facility – currently employing 100 staffers – was in fact established to essentially take over claims processing and other BPO functions for a healthcare technology services provider. Patni also has onshore facilities in Bloomington, Ill., Milpitas, Calif., and Cambridge, Mass.

Viola says tax incentives, low attrition and well-established telecom connectivity are some of the key attractions of the onshore model. “There are certain tax breaks that you may not have gotten before,” he says.

Patni also opened a new Nearshore center in Queretaro, Mexico where about 50 people work. Expectations are that the facility will grow to 300 over time.

Viola says in the aftermath of the recession, U.S. customers are taking a very hard look at the fundamental needs of their businesses. “What the recession did was force companies to rethink businesses that they’re in… Some of them have had to radically change their business direction.”