Hyderabad: ValueLabs, which offers Internet, mobile and interactive TV application solutions, is targeting to quadruple its turnover in the next two years. The company has a turnover of $10 million at present.

Arjun Rao, founder and chief executive officer, ValueLabs said, "ValueLabs has grown from a $350,000 company in 1999 to a $10 million one in 2004." He said the company expected to complete 2004-05 with $14 million in revenues and increase in manpower to 2000 from 450 at present.

The company has been recording a 70 per cent growth in both revenue and headcount since its inception in 1997. Rao said, "We target to achieve $40 million by the end of 2006, as well as increasing our manpower to 2,000 from 450, which we currently have, " he added.

The company plans to recruit over 600 people during the current financial year. Of the 450 personnel employed by the company, 100 are involved in software services, while the rest carry out tech support services and knowledge process outsourcing (KPO) activity.

According to Rao the company has orders worth over $14 million in hand and is in the process of negotiating with more companies.

ValueLabs is also putting up a new 150,000 sq ft facility, which will be completed by June 2005. The centre would have state-of-the-art quality assurance and development labs with high bandwidth and triple redundant Internet connectivity. The company has earmarked $7 million for the new center, which would accommodate 1,500 people.

Rao revealed that software services accounted for 75 per cent of the company's revenue during the last financial year. KPO consists of business process outsourcing, market research, financial and insurance services, etc.

The company set up an office in Atlanta, US with an investment of $1 million and has been chosen as the 'Gold Sponsor' for a prestigious BPO conference 'BPO Connections and OutsourceWorld' to be held in New York on October 5-7.

Rao said ValueLabs had been consistently attracting top talent from the industry, even as its attrition rate is among the lowest in the industry at below five per cent.

ValueLabs has roped in Paul Larson from 24/7 Customer Inc to head its sales force in the US. Larson was responsible for the growth of 24/7 from a 30-member company into a over 4,000-strong company. He also secured a $30 million build operate transfer contract with Aviva Insurance for 24/7, he said. During his tenure, 24/7 saw its revenues zooming from $300,000 to $35 million.

The company has also entered into the business process outsourcing (BPO) area with high-end tech support services like R&D work, data entry, customer support and e-mail services. It has 22 major clients, having added seven new clients in the last four months.

ValueLabs is looking at second-tier cities like Visakhapatnam for its future expansion programmes.