This compared to a net profit of $1.4 million in the previous year’s quarter. Revenue was up more than 65% at $33 million.
iGate Corp, the holding company of Bangalore, India-based offshore services provider iGate Global Solutions [IGAT.BO], claimed the loss was due to recent acquisitions in the ITES sector, as well as pressure on billing rates and higher costs associated with supporting clients in the US.
The company has warned that profits will continue to be under pressure for the next two quarters due to acquisition, restructuring and higher expenses without corresponding revenue. Once the additional revenue kicks in, which is expected in the next fiscal year, the situation should stabilize.
iGate has just announced the acquisition of information technology solutions and services business of Bangalore-based IdeaSpace Solutions Ltd [IDEA.BO] for $1.6 million, adding 170 employees, many of whom are specialists in banking technology and operations.
During the quarter iGate also completed the acquisition of Quintant Services, a business services provisioning company, for $19.2 million in cash. The company brought with it 65 employees and expertise in banking, insurance and financial services, proprietary process tools and processes.
This article was based on material originally published by ComputerWire.
