"Our plans in the BPO sector, especially in the insurance space, are still being pursued. This could also be in technical support where the company is currently working with a US networking firm," Sonata informed the stock exchanges.

The company said it is also looking at acquiring companies of the size of about $50 million.

Sonata has been expanding its development operations in Hyderabad. It is setting up a 78,000 sq ft development centre and 'disaster recovery centre' which will begin operations in January with 200 people.

Recently, the company had announced setting up of a overseas development centre for TUI of the UK for providing application management services, developing e-business applications and developing and implementing Oracle application.