IT services company Virtusa has launched its managed application services business to improve revenue and profit growth. The company will target existing customers across the banking and financial institutions, telecom and manufacturing verticals.

US-based Virtusa has operations in North America and Europe and has delivery centres in India and Sri Lanka. As of March 31, the company employed about 4,000 professionals.

It reported net profit of $12.1 million or earnings of $0.50 per diluted share for the year ended March 31, both unchanged from the previous financial year. However, net profit for 2008-09 was $17.8 million.

Last year’s revenue decreased by five per cent to $164.4 million from $172.9 million. Revenue decreased by five per cent compared to 2008-09 too. As part of its efforts to speed up growth, Virtusa has started focusing on emerging markets such as India, Saudi Arabia, UAE, Singapore and Sri Lanka. The company offers solutions such as business process management, content and document management, business intelligence and data warehousing.

“We were offering these services separately to various clients. Under managed services, we are now planning to provide application restructuring, development, maintenance and testing as one complete offering,” said Sudheer Mareddi, senior vice-president of Virtusa. “According to client requirements we also have outcome-based pricing models as against the traditional time-and-material pricing.”

In developing countries such as West Asia and India, apart from the three verticals, Virtusa is also targeting BPO, media organisations and captive units of Fortune 1,000 companies in India. The market potential is huge, as high as $8.3 billion (IT services expenditure) in 2009 according to Nasscom.