Brazilian IT services provider Algar Tecnologia, which forms part of the holding company Grupo Algar, expects to initiate international expansion plans by year’s end, the company’s CEO, José Antônio Feccio, told BNamericas.

Algar’s international presence is currently limited to a handful of hosting clients outside of Brazil. Feccio emphasized that plans for further growth beyond Brazil’s borders is still in the planning stages, but noted that such expansion could come through the acquisition of an international company.

“We’ll be analyzing other opportunities that might arise and to complement our offering,” he said, making note of business areas such as IT infrastructure, connectivity, data center, systems development and integration, contact center and BPO.

“In any one of those areas, Algar will be considering inorganic growth,” he said.

Other priorities for this year include increasing training programs and strengthening relations with business partners. Algar expects revenues to increase 25-30% this year, after seeing sales increase 22% last year.

SYNOS TECHNOLOGIES

Earlier this month, Algar announced it had purchased compatriot software developer Synos Technologies for an undisclosed amount. Headquartered in Belo Horizonte, Synos provides services including software development, application outsourcing and maintenance, consulting, training and licensing.

Feccio said the acquisition will complement Algar’s systems development business area, noting that Synos has a highly trained workforce and expertise in software development.

“We needed more trained professionals in this area,” he said. “We also needed CMMI level 3 certification, and that came with Synos.”

The Synos acquisition will also extend Algar’s geographic presence in large cities such as Belo Horizonte, Brasília and Rio de Janeiro, as well as in the government sector.

Feccio was unable to disclose the value of the Synos purchase.

Algar’s offering includes IT outsourcing, business process outsourcing, IT infrastructure services, hosting, collocation and systems development and integration. Without considering the Synos purchase, Algar serves 160 clients in vertical markets such as government, healthcare, financial, education and utilities.

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