China's hiSoft says could list in 1-2 years

BEIJING, March 2 (Reuters) - Software services firm hiSoft Technology International Ltd. said on Friday it could seek a public listing in one-to-two years and would continue to double revenues annually as China's information technology outsourcing sector takes off. "It could happen in one or two years," chief executive Loh Tiak koon, told Reuters in an interview, referring to a possible share listing in the United States or Japan. "We are definitely looking to list."

The China-based firm still lags far behind its giant Indian rivals such as Tata Consultancy Services Ltd. (TCS.BO: Quote, Profile , Research) and Infosys Technologies Ltd. (INFY.BO: Quote, Profile , Research) (INFY.O: Quote, Profile , Research), but is optimistic about growth in the coming years.

"HiSoft is growing at about 100 percent year on year," he said. "We can continue to do that for another good three-to-five years."

The company -- which claims less than 1 percent of the global IT outsourcing business -- had revenues of about $50 million last year.

China's nascent IT software outsourcing industry controls only about 10 percent of the $30 billion global market, which is still dominated by the Indian companies that pioneered it.

HiSoft reckons the global IT outsourcing industry could grow to as much as $50 billion in 2009, while the industry in China would outpace that with 40 percent annual growth.

"To be taken seriously, you have to have about 10,000 consultants," said Loh, a former vice president at Hewlett-Packard Co. (HPQ.N: Quote, Profile , Research) responsible for greater China.

The upstart currently has about 2,300 consultants, which it expects to reach 10,000 in three to four years.

HiSoft completed its second round of fund raising by attracting $30 million last year from the likes of Granite Global Ventures, Draper Fisher Jurvetson ePlanet Ventures, Mitsubishi UFJ Securities (HK) Capital Limited and Sumitomo Corporation Equity Asia Limited.

Intel Capital, International Finance Corporation and JAFCO Asia were also investors, said Loh.

"There is a lot of money out there," said the executive, whose company had raised $20 million previously.

"We don't need any more money."

With the newly raised funds, hiSoft purchased U.S.-based Envisage Solutions earlier this year and is looking for more acquisition targets.

"Our appetite for acquisitions is growing bigger," he said. (US$=7.74 yuan)