Coasin expects 10% sales boost on new product partnerships

- Thursday, May 5, 2011

Coasin expects 10% sales boost on new product partnerships

Chilean IT group Coasin expects sales to grow 10% this year, from 40bn pesos (US$86mn) in 2010 to 44bn pesos, as a result of various partnerships with software companies to develop new products, Coasin CEO Raúl Ciudad told BNamericas.

According to Ciudad, Coasin is undertaking a long-term investment strategy to change its main source of income - from services to intellectual property.

"At the moment, our main sales come from services to the mining, retail, government and banking sector. Slowly we've been investing in software companies and also in universities' research areas to see what we can use to develop more intellectual property products," Ciudad said.

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Since 2008, Coasin has purchased stakes of 35-40% in three software companies - Solem, which has developed a biometric identification and access control software; Cognosoft, which supplies customer knowledge management software; and Gesintel, a financial risk solutions development company with software to detect and prevent money laundering.

Investment figures for those stakes ran into "a couple of million dollars," the CEO limited himself to saying.

Additionally, Coasin has an 80% stake in a business intelligence (BI) consultancy designed to provide understanding of business variables, business strategy creation, budget planning, implementation of BI tools and support services.

OUTSOURCING

The firm is also expanding its outsourcing services in the US by working with companies such as San Francisco-based firms Tibco Software (Nasdaq: TIBX) and 365 Main, as well as Telsource in New Jersey, he said. "We're doing business abroad, but we are taking it slow."

Coasin consists of Coasin Global Solutions, which offers outsourcing services overseas; Coasin Energy Solutions, which serves the energy sector; Coasin Business Solutions, focused on ICT services; Coasin Instalaciones, offering implementation services for carriers; and C2 Mining Solutions, oriented to provision of ICT solutions to the mining industry.