Cognizant Technology Solutions is all set to enter the business process outsourcing and will use its cash reserves of $130 million for the purpose.

N Lakshmi Narayan, president and chief operating officer, who inaugurated the company's techno-complex in Kolkata on Friday, said, "We plan to acquire an existing business or set up one from scratch in a year."

Narayan said the company has informed merchant bankers such as Salomon Smith Barney to find possible target companies.

"We have received some offers from them but are also looking at other possibilities," he added.

The company's expansion will be supported by adequate manpower addition. The company has firmed up plans to increase its manpower by 1,500 in the next one year, of which around 750 will be recruited in its new techno complex in Kolkata.

"At present the company's manpower strength is around 6,500 which will be increased to 8,000," Narayan said while inaugurating its techno-complex in Kolkata.

Cognizant is also looking at spreading its presence in different parts of the world. Around 80-84 per cent of the company's revenues come from the United States and as part of the risk mitigation exercise, Cognizant will consider entering other countries.

Lakshmi Narayan said China and Philippines were two of the options being weighed for setting up of development centres.

"The move is aimed at creating a cushion for our clients in case of political turmoil developing in India or countries where Cognizant has development centres at present" he said.

In India, the company is looking at specific opportunities where it can provide latest technology for its customers.

Cognizant has also firmed up plans of setting up two more techno complexes, one each at Bangalore and Hyderabad, for a total investment of Rs 50 crore (Rs 500 million).

On the revenue front, Lakshmi Narayan said, "We have targeted a business volume of $330 million for the year 2003, 80 per cent of which will be from the US."

Cognizant's investment across all three techno-complexes is approximately Rs 200 crore (Rs 2,000 million). The investment in Kolkata is about Rs 36 crore (Rs 360 million).

The company plans to increase the constructed area at its Kolkata complex by about 75,000 square feet in the second phase.

This will help to accommodate another 750 professionals from the current capacity of 700 professionals.