VOL1-RANKINGS
`100
DATAQUEST
www.dqindia.com
VOL XXXI No 15 I AUGUST 15, 2013
THE BUSINESS OF INFOTECH
BATTLE DQ TOP 20, VOL-1
FOR GROWTH
AUGUST 15, 2013
TCS Cognizant Technology Solutions Infosys Technologies Wipro Hewlett-Packard India HCL Technologies IBM India Ingram Micro India Redington Oracle India Dell India HCL Infosystems Cisco Systems India SAP India Mahindra Satyam Tech Mahindra Intel India Microsoft India iGate Global Solutions APC by Schneider Electric India 118 pages including cover
26.75% 42.66% 41,602 38,521 14.19% 16.69% 34,777 32,316 12.00% 28.50% 23,772 18,033 17.00% 14.00% 12,024 7.39% 11,746 15.01% 10,590 15.00% 9,961 -8.1% 9,883 10.06% 9,785 23.80% 8,500 20.28% 7,693 25.17% 6,872 5.37% 6,750 12.99% 6,122 22.33% 5,900 14.99% 5,508 Revenues in `Crore Special Subscription offer on page 104
55,134
LET’S BUILD A SMARTER PLANET.
AUGUST 15, 2013
20 OVERVIEW
The Paranoids Survived Growth is slowing down, the Rupee is weakening, enterprise IT spend is getting sluggish, decision making cycles are getting longer, and the competition is getting tougher. FY 13 was the year in which the IT industry battled for opportunity and batted for modest growth. In the end, the paranoids survived.
Rankings 100 The DQ 20................................................30-66 The DQ 50..............................................68-84 The DQ 100............................................86-99 SECTIONS
REGULAR
REGULAR
INDUSTRY
08
Edit
ENTERPRISE
10
DQ team
GOVERNMENT
12
Feedback
NEW SEGMENTS
116 Last Matter
PEOPLE
LEISURE
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EDIT
Ibrahim Ahmad ibrahima@cybermedia.co.in
The Broadband Dream
T
he ICT industry results for FY 2012-13 are not all that great and in general the mood is down. But I have been meeting a few people who never seem to give up and always look at the light at the end of the dark tunnel, rather than the tunnel. One such person I ran into a few weeks back happens to be in the business of cables, connectors, and other networking devices. His spirits, despite his company also not doing too well last fiscal, was as high as always. He believes that once the broadband infrastructure in India takes root, it will change the fortunes of the country. Of course telecom industry, will be one of the many many other industries or sectors that will piggyback the broadband bandwagon. The biggest hopes, according to him, is the inclusivity that broadband will bring. Unique ID (UID) card for every Indian is one such hope. India could become a different place if basic and credible information about 1,200 mn of its citizens is available in a digital format. In a way this will be like 1,200 mn digital entities. And then if there is a good broadband infrastructure, these 1,200 mn people could be reached for almost anything imaginable in this world. With UID, we could take number of account holders to maybe 110 mn. For instance, today less than 50% Indian’s have a bank account. A recent drive to open an account in rural areas got 100 mn people, but less than 90% of them are actually using the account. With a good broadband service we could take number of account holders to maybe 1,100 mn. And with a broadband which means using bank account through a mobile phone, these 1,100 people could be active account holders. These 1,100 people would have access to not only a bank, but education, health, financial support, employment, governance, police, judiciary, entertainment, ...as I said almost anything imaginable in this world. Organizations trying to sell products and services will suddenly see a new market come up, and will also be in a better position to offer tailor made solutions. What a boom of interactions and transaction it will be. My friend very strongly believes, or should I say confidently dreams, that between 2015 and 2025, when there will be broadband all around, India will be the global hub of innovations. The Indian government has set for itself a target 160 mn broadband users by the year 2012 and 600 mn users by 2020. This first 160 mn looks far from achievable, as we have only reached about 16 mn till date. For 160 mn by 2017, India will need go at the rate of 2.4 mn subscribers a month, and after that about 7.33 mn a month to reach 600 mn by 2020. That is a very tall order. But not unachievable. The National Optic Fiber Network (NOFN) plan, the USO Fund, the UID, the National Knowledge Network (NKN), are all steps in the right direction. What we need is to work on them like maniacs. Though very unsure and apprehensive, I would like to agree with my friend and dream that we will achieve it.
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EDITORIAL GROUP EDITOR: Ibrahim Ahmad EDITOR: Ed Nair ASSOCIATE EDITOR: Shrikanth G (Chennai) ASST EDITOR: Onkar Sharma, Krishna Mukherjee (Gurgaon) SR CORRESPONDENT: Jalaja Ramanunni (Bengaluru) BUSINESS Corporate HEAD of SALES & MARKETING: Satish Gupta (satishg@cybermedia.co.in) MARKETING: Arvind Razdan (Asst Mgr) Kuldeep Khatana (Asst Mgr Design) DELHI/NCR Amresh Mishra (Mgr Sales) BENGALURU T Roshan Sahadevan (Mgr Sales) Subhadeep Sen (Asst Mgr Sales) MUMBAI Meenakshi Madan (Asst Mgr Sales) PUNE Sunay Choudhury (Mgr Sales) CHENNAI T Roshan Sahadevan (Mgr Sales) KOLKATA Sandeep Roy Chowdhuri (Sr Mgr Sales) HYDERABAD Srinivas S (Asst Admin) INTERNATIONAL Vikas Monga (Mgr Sales) Operations GENERAL MANAGER: CP Kalra SR MANAGER: Anuj Sharma MANAGER: Debabrata T Joshi MANAGER: Jayant Singhal Shared Services VICE PRESIDENT: Manish Verma PRINT SERVICES: T Srirengan (GM) CIRCULATION & SUBSCRIPTION: C Ramachandra (Sr Mgr) Jagdeep Khanna (Mgr) Raghavendra S (Mgr) Raju Salve (Asst Mgr) Srinivas Gangula (Sr Exec) AUDIENCE SERVICING: Sarita Shridhar (Mgr) MIS & DATABASE: Ravikant (Mgr) PRESS COORDINATOR: Harak Singh Ramola (Exec)
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Dataquest (not affiliated with Dataquest Inc., a division of Gartner Group, USA), is printed and published by Pradeep Gupta, on behalf of Cyber Media (India) Ltd, printed at M/s Karan Printers, F 29/2, Phase II, Okhla Industrial Area, New Delhi, published at D-74, Panchsheel Enclave New Delhi 110017, India. Editor Ibrahim Ahmad. Distributors in India by IBH Books & Magazines Dist. Pvt. Ltd, Mumbai. Subscription (Inland): `1200 (24 issues), `2400 (48 issues), `3600 (72 issues). Subscription (Foreign): US $145 (SAARC Countries), US $75 (Rest of the world) By Airmail. (For subscription queries contact our Reader Service Executive: rsedqindia@cybermedia.co.in) Dataquest does not claim any responsibility to return unsolicited articles or photographs unless accompanied by adequate returnpostage. All rights reserved. No part of this publication may be reproduced by any means without prior written permission from the publishers.
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TO FAB OR NOT TO FAB p. 26
IT @ SNAPDEAL p. 72
ALL TIME FAVORITE MOVIES p. 80
`50
VOL XXXI No 13 I JULY 15 & 31, 2013 www.dqindia.com
DATAQUEST
JULY15 & 31, 2013
FEEDBACK
THE BUSINESS OF INFOTECH
MANAGING WITH THE WEAKENING ` The Digital
Front Office MANAGING WITH THE WEAKENING `
The Cloud
Questions Flash storage
is a game changer
MANAGING WITH THE WEAKENING RUPEE JULY 15 & 31, 2013
This is with reference to the article published in Dataquest in July issue. This is a very informative and well written article. This also brings out the impact of the fluctuating rupee on India’s IT services industry. I will look forward to more in-depth articles and follow up stories on the same topic. Rakesh Batra via email
HOW TO SHRINK YOUR DATA CENTER This is with reference to the article published in Dataquest in July 15th & 31st issue. This is really an eye opener on how to effectively manage your data center. This also speaks a lot about cost optimization and increasing capacity utilization.
Q
Q&A Sandeep Dutta IBM, India & South Asia 84 pages including cover
Special Subscription offer on page 74
COMFORT OF CONTINUITY This is with reference to the article published in the Dataquest in July issue. The author has given an amazing description about Narayan Murthy’s return to Infosys. The way he connects this change to Shibulal’s leadership with the help of some management concepts is quite an interesting read. Preeti Goyel via email
Supriya via email
DRUGS TO DRUGS, SCREEN TO SCREEN
SECURING YOUR DIGITAL CONTENT This is with reference to the article published in the Dataquest in july issue. The article deals with a very critical issue of securing digital content. This sensitive issue needs special attention and it’s great that you people have taken up this topic and informed the public. What’s interesting about this column is that the author has got strong understanding of the legal aspects involved in website protection.
This is with reference to the article published in Dataquest in July issue. This is an informative case study, discussing how an organization managed its growing collaboration needs with the help of video collaboration solution called real presence. This clearly brings out the challenges that an organization could face in collaborating internally and with the outside world. It also clearly lays down the solutions and the final outcome and this can set a good example for other organizations looking to resolve their collaboration issues.
Mahesh Buddhiraja via email
Avik Nair via email
SEND YOUR FEEDBACK TO SERVE YOU BETTER For subscription related issues, contact us at
rsedqindia@cybermedia.co.in You can also write to Reader Service Executive, DATAQUEST, Cyber House, B-35 Sector 32, Gurgaon-122 001, Haryana Fax: 91-124-2380694
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THE DQ 20
RANK
COMPANY
PAGE NO.
RANK
66
3i Infotech
90
18
Microsoft India
62
26
Acer India
70
33
Mindtree Consulting
76
92
Adobe Systems India
97
59
Moser Baer India
88
77
AGC
93
21
MphasiS
68
20
APC by Schneider Electric India
66
85
NCR India
95
61
Apple India
88
54
Neoteric Informatique
86
28
Aricent Group
72
82
Network Appliance India
94
60
Asus India
88
84
NIIT Ltd
95
64
Birlasoft
90
41
NIIT Technologies
80
89
CA Technologies India
96
99
Omnitech Infosolutions
99
47
Canon India
83
95
OnMobile
98
24
Capgemini India
69
10
Oracle India
48
13
Cisco Systems India
54
69
Persistent Systems
91
45
CMC
82
34
Polaris Software Lab
76
72
CMS Infosystems
92
58
Prithvi Solutions
87
2
Cognizant Technology Solutions
31
71
QuEST Global Services
92
44
Compuage
81
50
Rashi Peripherals
84
46
Core Education & Technologies
82
9
Redington
46
29
CSC India
73
97
Ricoh India
98
11
Dell India
50
43
Rolta India
81
93
Diebold India
97
27
Samsung India
72
53
Dimension Data
86
14
SAP India
56
49
EMC India
84
74
Sapient India
92
100
Financial Technologies India
99
23
Savex Computers
69
98
Fortune Marketing
98
70
Seagate India
91
30
Genpact
73
87
SFO Technologies
96
90
Geodesic Information Systems
96
88
Sify
96
80
Geometric
94
67
Sonata Software
91
38
Glodyne Technoserve
78
32
Sony India
74
12
HCL Infosystems
52
75
Spanco
93
6
HCL Technologies
40
65
SunGard India
90
5
Hewlett-Packard India
36
62
Supertron Electronics
88
42
Hexaware Technologies
80
56
Symantec India
87
68
Huawei India
91
83
Synechron Technologies
95
7
IBM India
41
25
Syntel
70
19
iGate Global Solutions
64
91
Take Solutions
97
63
Infinite Computer Systems
90
40
Tata Technologies
79
14
COMPANY
PAGE NO.
3
Infosys Technologies
32
1
TCS
30
48
Infotech Enterprises
83
73
TE Connectivity
92
8
Ingram Micro India
44
16
Tech Mahindra
59
17
Intel India
60
39
Texas Instruments
79
76
Intex Technologies
93
51
TPV Technologies
86
52
Iris Computers
86
78
Trimax IT Infrastructure and Services
93
81
ITC Infotech India
94
35
Tulip Telecom
77
96
Juniper Networks
98
57
Vakrangee
87
36
KPIT Cummins Infosystems
77
4
Wipro
34
22
Lenovo India
68
79
Xerox India
94
94
LG India
97
55
Ybrant Digital
87
15
Mahindra Satyam
58
37
Zensar Technologies
78
86
Mastek
95
31
Zylog Systems
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RANKINGS
RANK
16
2012-13 Revenue
Growth %- 2012-13
2011-12 Revenue
1
TCS
55,134
26.75
43,498
2
Cognizant Technology Solutions
41,602
42.66
29,162
3
Infosys Technologies
38,521
14.19
33,734
4
Wipro
34,777
16.69
29,803
5
Hewlett-Packard India
32,316
12.00
28,854
6
HCL Technologies
23,772
28.50
18,500
7
IBM India
18,033
17.00
15,413
8
Ingram Micro India
12,024
14.00
10,547
9
Redington
11,746
7.39
10,938
10
Oracle India
10,590
15.01
9,208
11
Dell India
9,961
15.00
8,662
12
HCL Infosystems
9,883
-8.83
10,840
13
Cisco Systems India
9,785
10.06
8,891
14
SAP India
8,500
23.80
6,866
15
Mahindra Satyam
7,693
20.28
6,396
16
Tech Mahindra
6,872
25.17
5,490
17
Intel India
6,750
5.37
6,406
18
Microsoft India
6,122
12.99
5,418
19
iGate Global Solutions
5,900
22.33
4,823
20
APC by Schneider Electric India
5,508
14.99
4,790
21
MphasiS
5,323
16.71
4,561
22
Lenovo India
5,315
28.01
4,152
23
Savex Computers
4,681
58.30
2,957
24
Capgemini India
4,600
20.10
3,830
25
Syntel
4,042
25.96
3,209
26
Acer India
3,942
9.77
3,591
27
Samsung India
3,624
-39.01
5,942
28
Aricent Group
2,957
0.99
2,928
29
CSC India
2,780
-1.87
2,833
30
Genpact
2,612
56.13
1,673
31
Zylog Systems
2,500
10.04
2,272
32
Sony India
2,387
8.01
2,210
33
Mindtree Consulting
2,343
22.99
1,905
34
Polaris Software Lab
2,308
12.42
2,053
35
Tulip Telecom
2,299
-15.01
2,705
36
KPIT Cummins Infosystems
2,239
49.27
1,500
37
Zensar Technologies
2,115
18.69
1,782
38
Glodyne Technoserve
2,090
-21.19
2,652
39
Texas Instruments
2,060
10.04
1,872
40
Tata Technologies
2,045
22.46
1,670
41
NIIT Technologies
2,021
28.24
1,576
42
Hexaware Technologies
2,017
28.47
1,570
43
Rolta India
2,011
8.12
1,860
44
Compuage
1,961
22.72
1,598
45
CMC
1,941
30.97
1,482
46
Core Education & Technologies
1,907
16.42
1,638
47
Canon India
1,896
15.89
1,636
48
Infotech Enterprises
1,873
20.61
1,553
49
EMC India
1,847
4.59
1,766
50
Rashi Peripherals
1,792
19.31
1,502
|
COMPANY
August 15, 2013
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A CyberMedia Publication
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RANKINGS
RANK
18
2012-13 Revenue
Growth %- 2012-13
2011-12 Revenue
51
TPV Technologies
1,725
19.79
1,440
52
Iris Computers
1,724
35.86
1,269
53
Dimension Data
1,709
15.01
1,486
54
Neoteric Informatique
1,624
16.00
1,400
55
Ybrant Digital
1,601
92.66
831
56
Symantec India
1,578
29.56
1,218
57
Vakrangee
1,556
14.58
1,358
58
Prithvi Solutions
1,472
19.67
1,230
59
Moser Baer India
1,436
60
Asus India
1,430
30.00
1,100
61
Apple India
1,423
61.34
882
62
Supertron Electronics
1,408
18.42
1,189
63
Infinite Computer Systems
1,391
31.72
1,056
64
Birlasoft
1,351
5.79
1,277
65
SunGard India
1,321
1.54
1,301
66
3i Infotech
1,311
-22.01
1,681
67
Sonata Software
1,311
22.64
1,069
68
Huawei India
1,298
30.98
991
69
Persistent Systems
1,294
29.40
1,000
70
Seagate India
1,280
6.67
1,200
71
Quest Global
1,248
54.46
808
72
CMS Infosystems
1,243
3.33
1,203
73
TE Connectivity
1,100
14.58
960
74
Sapient India
1,095
20.07
912
75
Spanco
1,085
-41.95
1,869
76
Intex Technologies
1,069
37.23
779
77
AGC
1,061
6.31
998
78
Trimax IT Infrastructure and Services
1,033
79
Xerox India
1,020
10.87
920
80
Geometric
1,020
26.24
808
81
ITC Infotech India
1,009
22.01
827
82
Network Appliance India
995
9.94
905
83
Synechron Technologies
983
33.20
738
84
NIIT Ltd
961
-23.73
1260
85
NCR India
918
8.00
850
86
Mastek
894
34.64
664
87
SFO Technologies
882
5.00
840
88
Sify
857
10.72
774
89
CA Technologies India
855
5.04
814
90
Geodesic Information Systems
843.29
17.61
717
91
Take Solutions
832
18.18
704
92
Adobe Systems India
750
15.38
650
93
Diebold India
742
15.04
645
94
LG India
730
-4.58
765
95
Onmobile
725
13.64
638
96
Juniper Networks
717
4.98
683
97
Ricoh India
633
46.52
432.01
98
Fortune Marketing
552
15.00
480
99
Omnitech Infosolutions
539
6.94
504
100
Financial Technologies India
535
6.79
501
|
COMPANY
August 15, 2013
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A CyberMedia Publication
|
OVERVIEW
Shrikanth G shrikanthg@cybermedia.co.in
The Paranoids Survived Growth is slowing down, the Rupee is weakening, enterprise IT spend is getting sluggish, decision making cycles are getting longer, and the competition is getting tougher. FY 13 was the year in which the IT industry battled for opportunity and batted for modest growth. In the end, the paranoids survived. “The lesson is we all need to expose ourselves to the winds of change”— Andrew S. Grove, in ‘Only the Paranoid Survive’
A
s we pick up threads from the IT industry’s performance in the last five quarters, the predominant theme that emerges out is the challenging market dynamics during FY13. The economy ailed, the rupee continually weakened against the dollar, the government went indolent, and enterprises tightened their IT spends. But all hope was not lost, Indian enterprises sought better value from IT and inched forward to the nexus of forces—cloud, social, mobile, and analytics. Over the year, there were many market realignments that recomposed the market, recast the vendor landscape, and welcomed leadership changes. MARKET DYNAMICS
While TCS still retains its #1 spot in the DQ Top 20 rankings, it is the next four spots that had undergone many changes. Infosys lost its ground in the last one year and there is enough written across media on what ails Infosys and its road ahead. The ascent of Cognizant is indeed impressive—it upseated Infosys which went one rank down to #3 while Wipro took the #4 position. 20
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August 15, 2013
www.dqindia.com
TAKEAWAYS oo The current market dynamics clearly warrant that
vendors need to chase growth and they need lots of key differentiators in positioning their offerings in the market and need to have a singular focus on the bottom lines
Reflecting on Cognizant’s FY13 performance, R Chandrasekaran, Group Chief Executive, Technology and Operations, Cognizant says, “One thing that has remained absolutely consistent is our strategy of reinvestment in the business to drive top line growth. That has helped us maintain stable operating margins and deliver industry-leading revenue growth. The year 2012 was no exception.” Cognizant was able to create a well-meshed blended global delivery model and A CyberMedia Publication
|
OVERVIEW
GIVEN THE MARKET DYNAMICS, THE OUTCOME OF FY13 IS ALL ABOUT HOW VENDORS TRIED TO RETAIN THEIR MARKET SHARE AND BEING IN SYNC WITH REALITIES
despite its major dependency on the US markets, was able to consistently grow its footprints in the European market over the last few years. Cognizant unlike Infosys is much faster in its inorganic initiatives and some of its acquisitions in the recent past had given it the leverage to serve European markets well. From a broader industry perspective, the major trend that manifested into a reality, more so in the last two years was that acquisition needs to be scaled and synergized quickly. On that count, Cognizant had done extremely well. It’s not about big ticket inorganic initiatives; mid to small niche company buys offer better returns. Given the market dynamics, the outcome of FY13 is all about how vendors tried to retain their market share and being in sync with realities. No one talked about big growth. For instance, when TCS announced its FY13 results, N. Chandrasekaran, CEO and MD of the company termed the company’s FY13 as ‘sustaining the momentum’. But even to sustain the momentum companies needed a slew of new competencies to deepen and add new accounts. As Chandrasekaran said, “We continue to identify new growth engines and are investing ahead of the curve in products, platforms and intellectual property that is of great relevance to our customers and their business growth.” IT 2.0: NEW RULES….HIGHER EXPECTATIONS
Clearly, all the leading vendors are locking horns in the battle to offer the best-of-breed solutions in the emerging areas like big data, analytics, mobility, cloud and rediscovering infrastructure management services. According to a recent Gartner report on the Indian IT services market it observed that, “Indian providers use an integrated approach of applications, infrastructure and BPO, thereby allowing them to get a better handle on their clients’ IT-business process leveraging, through which they can deliver greater cost savings and drive business value. This allows them to expand their margins |
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as well. All these providers also have a strong focus on infrastructure services, particularly remote infrastructure management services, which account for 65% to 70% of their infrastructure services revenue.” The current market dynamics clearly warrant that vendors need to chase growth and they need lots of key differentiators in positioning their offerings in the market and need to have a singular focus on the bottom lines. Take the case of Wipro. The company by demerging its non-IT business by FY13 end has become a pure play IT service provider. Azim Premji, chairman, Wipro, reflecting on this said, “We have completed the demerger of the ‘diversified business’ effective March 31, 2013 to make Wipro Limited a pure play IT company. We are confident that being a technology-focused company will provide a fresh momentum for growth.” Growth- that’s what everyone is chasing and it depends on lot of parameters. For instance, the global delivery model is now commodity. It is becoming increasingly difficult for them to differentiate themselves. CIOs and CXOs demand more ‘bang for every penny spent’ on technology makes clinching new deals a challenging one. It’s a known fact most of the service providers thrive on long term strategic outsourcing deals and repeat business, but as they move forward, the biggest risk factors being - geographical, vertical and client dependency. Some of the companies lean heavily on the Top 5 or the Top 10 accounts in their kitty and any slowdown in client’s core area of operations will impact them dangerously. And so, if they do not innovate at ground zero, the vendors will see customer attrition. This is what the iconic tech czar and founder of Intel - Andy S Grove said many years back in his path breaking book, Only the Paranoid Survive that “Businesses fail either because they leave their customers or because their customers leave them.” So customer satisfaction will increasingly play a role in defining future growth of these companies and also in others areas like repeat business and new account creation. www.dqindia.com
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21
OVERVIEW
Guiding Principles For DQ Top 20 n The company revenues have been taken for the period 1 April 2012 to 31 March 2013. Though different companies have different financial years, we have taken April-March revenue for each company to maintain uniformity. n Revenues of IT services companies do not include their BPO revenues. However, we have included BPO manpower in total number of employees, in most cases. Even in graphs showing overall revenue share across geographies or verticals, we have included the BPO revenues. n For companies headquartered in India or for companies that had their first delivery center in India, even if they are headquartered outside India, we have taken the entire IT revenue; for companies that do business in India, we have taken the entire India IT revenue; for other non-Indian companies which export out of India, we have taken only the revenue generated by the Indian legal entity. That holds true for captive units as well. n For all conversion purposes, we have taken an average of the conversion rates across 12 months: $1= `54. For companies that have filled our form in Indian rupees or those listed in India, we have taken their rupee revenue figures irrespective of the currency exchange rate they have used. For others, we have converted to Indian rupees. n In case of companies that have not provided us with revenues, we have done our own estimates. For domestic business, we have used sources like distributors, channel partners, SIs, customers and competitors to get unit shipments and average selling value to estimate the revenue. For export services, we have based it on average headcount and average salary, taking into account factors such as the type of work and type of services. n In case of non-Indian companies that have their development/delivery centers, we have added their India sales revenue to the export revenue and have presented the total figure. n While many companies responded to the questionnaire sent out us, many others shared information informally over one-on-one interactions. However, there were a few companies that refused to share any information with us; in such cases, information has been gathered and revenues estimated from secondary sources. n We have included enterprise data connectivity services revenues in companies that provide end-to-end services including integration and managed services n We have included mobile phone distribution revenues in case of distributors but have not considered the pure phone vendors in the ranking. n We have not included the revenues of smartphones. Disclaimer: While the Dataquest team has taken utmost care to stick to these principles, there may be instances, where we may not have succeeded in following these principles—say being able to deduct BPO or telecom revenue—completely. Also, though we have tried to be as comprehensive as possible, we might have inadvertently left out few companies from the DQ 100 list. Any suggestions on this would be most welcome.
THE MNC BANDWAGON
OUTLOOK:
As we look beyond the WITCH group, for vendors like HP, IBM, Dell, et al, while they have been able to grow modestly but still due to the breadth of services and products they vend in, they slogged over the year to sustain their momentum. IBM saw a change of guard with new head of Indian operations - Vanitha Narayanan, who joined IBM as its new MD replacing Shankar Annasamy. IBM leveraged its domestic market expertise to its advantage and secured good mandates from BFSI segments for its services. Servers and storage also worked well for IBM. Meanwhile, HP aligned its strategy in line with its new style of IT and took to market aggressively its converged infrastructure play. Dell also made the right moves in upping its stature in the services space and placed its bet on software and services. Dell in India also saw a change at the top with Alok Ohrie (former IBM’s STG head) joining Dell India as its MD and President.
As we look ahead at FY14, and this being an election year makes for a period of uncertainty in which all the vendors are cautiously optimistic. With lots of pending government policy related issues and the sense of political instability and range of issues related to governance has led to the dip in investor confidence and a steady decline of FDI into India. These are indeed worrying factors for the industry and add to that the various issues relating H 1B visa in the US also puts in an element of ambiguity in deploying people for on-site operations in the US with quick turnaround times. Notwithstanding the challenges, the Indian IT industry has demonstrated a high degree of resilience and discipline over the years and most of the vendors in the fray had posted a good Q1 FY14. Overall the performance during H1 FY14 looks good but there are uncertainties ahead.
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The Indian IT League Tables
DQ Top 50
Infosys Technologies Wipro Redington Cisco Systems India Acer India Aricent Group CSC India Core Education & Technologies Canon India
o o o o o o o o o
Intel India o HCL Infosystems o Texas Instruments o Tulip Telecom o Rolta India o Glodyne Technoserve o EMC India o *Samsung India o
Sonata Software o 26
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oo Hexaware oo Genpact
oo CMC
oo NIIT Technologies
oo Syntel oo Tata Technologies oo oo oo oo oo oo oo oo oo oo oo oo oo oo oo
TCS Hewlett-Packard India HCL Technologies IBM India SAP India Capgemini India Polaris Software Lab
oo oo oo oo oo oo oo oo oo
Cognizant Technology Solutions Ingram Micro India Dell India Tech Mahindra Mindtree Consulting Zensar Technologies Infotech Enterprises Rashi
Oracle India Mahindra Satyam Microsoft India iGate Global Solutions APC by Schneider Electric India MphasiS Lenovo India Zylog Systems Sony India
Note: Steps denote number of ranks.
* This year we have excluded mobile/smartphone revenues of Samsung. This is the reason for the fall in the ranks of Samsung
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27
The Indian IT League Tables
DQ Top 20 oo Cognizant
Technology Solutions oo Ingram Micro India oo Dell India oo Tech Mahindra
oo oo oo oo oo
Infosys Technologies Wipro Redington Cisco Systems India
TCS Hewlett-Packard India HCL Technologies IBM India SAP India
oo oo oo oo oo
Oracle India Mahindra Satyam Microsoft India iGate Global Solutions APC by Schneider Electric India
o o o o
Intel India o
HCL Infosystems o
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The DQ 20 RANK
COMPANY
PAGE NO.
RANK
COMPANY
PAGE NO.
1
TCS
30
11
Dell India
50
2
Cognizant Technology Solutions
31
12
HCL Infosystems
52
3
Infosys Technologies
32
13
Cisco Systems India
54
4
Wipro
34
14
SAP India
56
5
Hewlett-Packard India
36
15
Mahindra Satyam
58
6
HCL Technologies
40
16
Tech Mahindra
59
7
IBM India
41
17
Intel India
60
8
Ingram Micro India
44
18
Microsoft India
62
9
Redington
46
19
iGate Global Solutions
64
10
Oracle India
48
20
APC by Schneider Electric India
66
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THE DQ 20
1
Tata Consultancy Services
Dhoom Machale Dhoom Machale...
S
—N CHANDRASEKARAN CEO & MD
www.tcs.com
2012-13
55,134
2011-12
43,498
Source: DQ estimates revenue (`crore)
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26.75%
uperb Performance: Once again TCS led the Indian IT industry with unflagging energy. Its performance reflects steady upward trend in its financial outcome over the years. Financially, TCS has achieved well-rounded growth with steady profitability. It had excellent growth across markets—United Kingdom (44%), Latin America (40%), North America (27%), Europe (21%), Asia Pacific (27%), Middle East Africa (28%), and India (16%). Double-digit Growth: All vertical segments and service segments registered double-digit growth. For the first time, the company crossed $3 bn revenue during Q4 of the financial year 2012-13. TCS’ new service lines grew at a fast pace—infrastructure services grew by 47%, while assurance services, enterprise solutions, and global consulting grew by 33%, 25%, and 52%, respectively. Brand Value: The consistent performance has helped TCS gain in terms of brand valuation too. TCS added $1,179 mn in brand value over 2012, growing by 28.9% annually to reach the $5 bn brand value mark. It also retained its position among the ‘Big 4’ most valuable IT services brand worldwide—in the ranking carried out by Brand Finance, the world’s leading brand valuation firm. Non-linear Growth: While the company continued to make significant progress in the traditional IT services offerings, it has been pursuing nonlinear growth opportunities, which contribute revenue growth without commensurate growth in headcount. The contributors to the non-linear business model are products such as BANCS(BFSI), Rewardz and mPOS (retail), hosted OSS/BSS (telecom), Clin e2e and Med Mantra (life science & healthcare) and SWIFT MRO (travel); vertical platforms for industries; technology platforms like iON – a fully integrated IT-as-a-Service (ITaaS) model for small & medium businesses; and solutions comprising several configurable solutions and pre-built components. R&D Focus: TCS R&D is focused on improvement of quality and efficiency in service delivery. In FY13, a large number of software tools from R&D were released in the market as eight distinctive suites under TCS’ tool brand MasterCraftTM; ‘eTransform, an analytics-led toolset for IT infrastructure; the ‘Connected Marketing’ platform; and ‘Optumera’, a retail optimization solution. TCS filed 425 patents during FY13 and was granted nine patents. People: TCS added over 69,000 professionals during FY13 to its existing base. The attrition rate including BPO has come down to 10.60% in fiscal 2013.
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THE DQ 20
2
Cognizant Technology Solutions
Bhaag Franco Bhaag...
G
—FRANCISCO D’ SOUZA CEO
www.cognizant.com
2012-13
41,602
2011-12
29,162
41.00%
rowing Stature: Cognizant, a few years back, was considered as ‘an also ran company’. But over the last 3 years, its stunning ascent has made its competitors scurrying back to drawing tables to understand what’s wrong with them and what’s working for Cognizant—as the latter also competes on the same turf. The Year that Was: As we look at FY13, Cognizant up seated Infosys in the quarter ended June 2012. And in JFM’13 quarter, its revenues crossed $2 bn per quarter mark. Indeed a stellar performance and as we look at the year gone by, in 2012, Cognizant continued its heavy focus on building out its front-end capabilities in Europe and strengthening local presence. It topped the client satisfaction and relationship rankings in KPMG’s outsourcing 2012 study of service provider performance across Europe. Cognizant topped the rankings in general satisfaction and relationship management—both strategic and operational—with scores significantly higher than the industry average. Leveraging Inorganic Assets: As we stack up Cognizant with the Top 5, it has indeed created blended competency building strategies. While its strategy of ‘re-investment of its profits’ back into business is well known, but its ability to spot some geographic specific acquisitions has greatly helped in deepening its mandates. Take the case of acquisitions it did over the last year like the six companies of the C1 Group- an independent consulting and IT services firm based in Hamburg, Germany—which focuses on three industry segments: Manufacturing and logistics, energy and utilities, and financial services. In the last quarter it saw the fruits of this acquisition with all the synergies falling in place and translated into good business pipeline in the German and European markets. Another interesting acquisition was its MediCall buy, a US headquartered medical management services firm with operations in the Philippines. Big Deals: Meanwhile Cognizant also announced large, complex, transformational multi-service line deals from marquee client names such as Rabobank, Royal Philips Electronics, and ING US during the year. It also announced significant wins from customers such as The Hartford and Community Health Solutions of America, Inc. (CHS). Cognizant closed calendar 2012 with a total of 821 active clients of which 214 are considered strategic—those that have the potential to generate annualized revenue of $5 mn to $50 mn and more.
Source: DQ estimates revenue (`crore)
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THE DQ 20
3
Infosys Technologies
Subah Ka Bhoola, Jab Shaam ko...
R
—SD SHIBULAL CEO
www.infosys.com
2012-13
38,521
2011-12
33,734
14.2%
ough Patch: Infosys’s woes continued this year too with slackening of pace of growth, exit of senior level talent, and perceived lack of conviction in its strategy. CEO Shibulal is well cognizant of how the world views Infosys under his leadership. He admits that the journey had not been easy and that the company encountered obstacles along the way. He concedes that every slowdown led to concerns about the strength and relevance of the strategic choices made by the company. Shibulal also confessed that this may have caused a rare moment of self-doubt, but professed that the company now has utmost conviction in its strategic choices. Performance: Infosys’s performance during the year, though at a slower clip, was fair. The total number of $1 mn plus clients increased to 448 from 399 the previous year. During the year, 235 new clients were added, which took the total client base to 798. More than 15 large integrated outsourcing deals worth over $1 bn in total contract value was signed during the year. Geographies: Out of the total revenue, North America and Europe accounted for 62.2 and 23.1% respectively, while India and rest of the world contributed 2.1 and 12.6% respectively. Overall, it represents a drop in contribution from North America and Europe of 1.8 and 1.1% respectively, which effectively signals an overall slowing down of growth from 20% last financial to 14.2% this year (excluding BPO revenues). Services: Nearly 63% revenues came in from business IT services. Consulting and package implementation brought in 31.4% of the revenues. The incremental growth was driven by unique service offerings like infrastructure testing, which was developed by integrating infrastructure management and testing services. Products, Platforms, and Solutions: As part of non-linear growth driver, this accounted for 5.7% of the revenue. 51 deals (excluding Finacle) were signed taking the total client count to over 75. Additional investments of $100 mn is being planned in this area. Finacle had 48 wins this fiscal. The company filed 97 unique patent applications in India and US. India Business: The company reported good traction from the India business unit. Key projects included Ministry of Company Affairs MCA 21 V2, Haryana State portal, and Department of Industrial Policy and Promotion’s G2B portal.
Source: DQ estimates revenue (`crore)
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THE DQ 20
4
Wipro
Babuji Tej Chalna...
S
—T K KURIEN CEO
www.wipro.com
2012-13
34,777
2011-12
29,803
Source: DQ estimates revenue (`crore)
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16.69%
lackened Growth: Wipro’s performance is marked by an overall slowing of growth in comparison to last year on all fronts. This is evident by drop in growth rates across verticals, service areas, and geographies. Verticals: Growth slowed down in financial services, healthcare, manufacturing, retail, and transportation with growth rates falling down to low single digits. Most of all, the drop was the highest in media and telecom which witnessed a decline of 3.9%. The bright spot was marked by Wipro cementing its leadership in the energy and utilities space with 18.8% growth, but there was a sharp drop from the previous year’s astonishing growth rate of nearly 58%. Services: In terms of services, ADM and consulting declined by 4.3% and 16.3%, respectively. Global infrastructure services and analytics grew 12.6% and 12.8%, respectively. The infrastructure services business is backed by its IT360 framework. Some other key industry-specific service offerings include Wireless Place, Shoptalk, and Bank in a box. Business application services grew 6.6%. Geographies: In terms of geos, Americas (accounting for 51% revenues) growth rate dropped to 1.9%, while Europe (accounting for 29%) saw a slowing down to 6.3% from 18.5% the previous year. The company admits to lower penetration levels in continental Europe, but investments in France and Germany are expected to deliver growth in this area. The highest growth region was APAC and other emerging markets (accounting for 24% of revenue), while India and Middle East grew by mearly 0.7%, primarily because of slowing Indian economy. The Middle East marked fared good for Wipro. Wipro announced that it has won a three year strategic managed services contract from Emirates NBD to deliver end-to-end service transition and transformational services. Bright Spots: Wipro’s banking practice has partnered with over 50 of the world’s leading banks including four of the top five banks worldwide and leading banks in the Asia Pacific region, while its insurance business boasts of several Fortune 100 insurance clients. Wipro has applied for 53 new patents and the company was granted patents for 15 applications. Wipro Technologies also announced that it has been appraised at Capability Maturity Model Integration CMMI-DEV 1.3 Level 5. Demerger: During the year, Wipro completed the demerger of the diversified business to separate the technology business into a separate entity. This is intended to provide sharper focus to the technology business.
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A CyberMedia Publication
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THE DQ 20
5
Hewlett-Packard India
Hum Kisi Se Kam Nahi
W
—NEELAM DHAWAN MD www.hp.com
2012-13
32,316
2011-12
28,854
36
|
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12%
arming Up: It was not that bad year for HP in India if we compare FY13 with FY12. Moreover, FY13 was the year of settling down after waves of reorganization globally in FY12. In a way, HP was able to further hone its areas of expertise and strengthen itself with new products in India and driving home HP breadth of services and its aptness to enterprises which formed the core of its GTM strategy. Focus areas revolved around cloud, big data, mobility, and security that topped its agenda. One of the major highlights of the year being its big ticket government win for supply of 15 lakh laptops to the UP government which had earmarked an investment of about `2,858 crore. The company reported being fully on-schedule in delivering the laptops and expects to complete the project by September 15. Despite reports of issues with payment, HP confirmed that payments are not a problem. Storage Works: Meanwhile as we look at some growth drivers, going by the company sources they say across its entire business segments HP has upped its market share with significant spike coming on its storage portfolio which rode on the 3PAR products which saw significant uptake in India. Serving Up: On the server side, one of the biggest challenges for HP and competitors like IBM and Oracle is the fact that UNIX market is contracting significantly over the years. In HP’s case, it is still tied up with Intel Itanium for its UNIX play and on the contrary to initial skepticism, HPUX indeed has got a new lease of life with Intel announcing Paulson and Kittson line of Itanuim processors and a firmed up roadmap on Itanium. Players like HP believe that despite the shrinkage of market size, UNIX market will have its sweet spot in high-end mission critical enterprise computing customers. On the x86 side, initiatives like Moonshot and Project Odyssey gave HP ample ammunition to offer highly energyefficient and agile servers. Going On: On the PPS side, HP continued its dominance with its range of printers—from Inkjets to Lasers to MFDs. The company tried out innovations with its PC business by coming out with hybrid form factors like launching Notebooks. On the services side, HP managed to retain its traditional strong hold in verticals such as BFSI and manufacturing and also deepened its mandates with new wins as well.
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A CyberMedia Publication
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THE DQ 20
6
HCL Technologies
Baazigar O Baazigar...
R
—ANANT GUPTA President and CEO
www.hcltech.com
2012-13
23,772
2011-12
18,500
28.50%
Source: DQ estimates revenue (`crore)
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A CyberMedia Publication
emarkable Performance: One of the key milestones in fiscal 2013 (July to June) is crossing the `25,000 crore mark with earnings before tax in excess of `5,000 crore and net income of `4,000 crore. The company’s performance is laudable with seven successive quarters of net income margin expansion marking a 62% growth in net margin. During the year, managed services and fixed price contracts outstripped time and material contracts at 52 and 48% respectively. HCL Technologies boasts of a well diversified client portfolio with Top 20 clients accounting for nearly 33% of revenue. This suggests a highly de-risked model in terms of client concentration. Growth Spots: The high growth spots during the year included 13% growth in Americas and 20% growth in Europe. In terms of services, infrastructure services, accounting for 29% of the revenues, continued to be the stronghold with 36% growth. Compared to the previous year, growth rate here increased from 25%. The company believes that there is a huge potential left in the infrastructure services market so much so that it is of the opinion that all the Indian outsourcing providers put together caters to only 5% of the market. All other practices showed mid single digits growth. Amongst verticals, the highest growth area was life sciences and healthcare at 45%. Financial services, retail and CPG, media and entertainment, and public services showed strong double-digit growth rates. Services Innovation: HCL’s application rationalization and modernization services have evolved over the past few years. The company developed its own IP such as application portfolio management tool ‘Prizm’ and integrated various application modernization services under ‘ Business Operations Platform Transformation’ service. New Leader: The year saw a change of guard from Vineet Nayar to Anant Gupta. Anant Gupta, who has been with HCL Group since 1993, took over as the President and CEO of HCL Technologies. Key Wins: HCL Tech’s key wins during the year include a landmark five year, multi-million dollar infrastructure transformation deal with Freescale Semiconductor; a long-term, global IT infrastructure management outsourcing services agreement with Nokia, and a global engineering partnership with The Manitowoc Company, a leading multi-industry, capital goods manufacturer. HCL Technologies also partnered with Siemens PLM Software for the Indian market aimed at accelerating adoption of PLM software. www.dqindia.com
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ENTERPRISE | IN FOCUS
How IT is As companies look forward to draw more benefits out of them, BPOs are no more confined to their money-saving image
B
usiness process outsourcing (BPO) can be a cutting-edge practice. Yes, really. This may well be a shocking statement to some, given that BPO has been a standard operating procedure at many companies for more than two decades. But for those CIOs prepared to take a fresh look at what they do, it is now possible to uncover significant additional value from the activity. Today, while efficiency is still a driver of outsourcing deals, the most forward-looking companies also want to realize a number of other benefits—business insight, innovation, and industry expertise—that will together deliver strategic business impact. How do we achieve the goal? One important lesson to draw from those companies already getting the greatest benefits from BPO is that it’s crucial to make better use of technological developments in service provision. INFUSING TECHNOLOGY
Some 40% of the companies identified as BPO high performers in a study consider that technology provided by their service providers is an important component of
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Anoop Sagoo maildqindia@cybermedia.co.in
Revitalizing BPO their relationship, compared to only 27% of companies whose performance is considered typical. The key is to see technology not just as the mechanism through which BPO is delivered but rather as a source of innovation and competitive advantage in its own right. There are many examples of this. Analytics Applications: These tools can be real drivers of value when built into a BPO provider’s services. They provide real-time insights into a company’s operational performance in a range of areas. Forecasting Tools: BPO services may incorporate applications that give companies a much clearer view of potential demand across their businesses—this can generate substantial improvements in supply chain management. Performance Monitoring: BPO service providers are in the right position to identify and monitor the performance of their client companies on a wide range of metrics—tools that process and channel this data will add further value. Automated Disclosure: Some BPO services offer facilities to automatically disclose all relevant information
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to the client company’s key stakeholders, improving transparency, and building trust. UNDERNEATH THE REFRESH
None of these facilities has traditionally been associated with cost-driven BPO, but each offer provide the possibility of genuine value creation alongside the efficiencies with which many organizations are much more familiar. However, businesses will have to make some adjustments in order to capture such potential. One is technological—in order to make the best use of BPO services, especially as they develop over time, a switch to cloud-based computing is likely a necessity. More fundamentally, CIOs will need to begin thinking about their BPO service providers in a different way— as business partners rather than the suppliers of a commoditized technology solution. That will require high levels of trust on both sides and a much closer working relationship. Get it right, however, and the prize is a valuable one: BPO services that generate competitive advantage as well as cost savings.
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THE DQ 20
7
IBM India
Neele Neele Ambar Par...
M
—VANITHA NARAYANAN MD
http://www.ibm.com
2012-13
18,033
2011-12
15,413
Source: DQ estimates revenue (`crore)
40
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August 15, 2013
17%
aking the Most of it: What helped IBM in India to counter the challenging market dynamics during FY13 came from its deep understanding of the domestic market. The underlying tone over the last year was delivering the message how IBM’s suite of solutions—be it hardware or software can usher in a enterprise wide transformation—in terms of bigger RoI, efficiency, and how it can bring in more business profitability. It retained its share in infrastructure service market with upwards of 18% share and its ‘smart cloud’ initiative and ‘virtual server recover services’ saw good momentum. On the server side, it took a dominant position in the non-x86 server RISC/ UNIX market. Change of Guard: In a top management change at the end of FY13, IBM appointed Vanitha Narayanan as managing director. She replaced Shanker Annaswamy, who took on a senior advisor role within IBM India. Beyond that, IBM India saw its STG head, Alok Ohrie who played an instrumental role in driving the server business joining Dell India as its president and MD. The RoI Game: Clearly what worked for IBM here is the IT efficiency and optimization card. IBM aligned its offerings aimed at better fitment and for greater bottomline impact. Particularly on the business critical systems side, IBM’s AIX is seeing some impressive gains and it is indeed giving a very tough time for HP-UX. The Non X King: One of the significant things IBM did was the launch of Power Linux in India thereby, providing UNIX like capabilities for non-UNIX customers. Recently, it made available its 4 socket 32 core box on its Power 750 server. Overall, Power Linux made a good entry over the year while actual larger dividends will be seen in FY14. Power Linux augurs well for IBM because Linux on Power servers run industry standard Linux—Red Hat and SUSE. On the IBM’s x86 System x portfolio, the emphasis was on delivering hardware that would be able to satisfy a heterogeneous technology environment. Storage Story: Storage is yet another area that panned out well for IBM. The company’s overall storage market share is pegged at about 24% last year. While the overall storage market did not grow over FY13, estimates suggest IBM had grown its storage business leaning on its Storwize range of storage offerings. It had wins from leading names like Manikchand Group, BPTP, Punjab & Maharashtra Co-Op Bank among others. www.dqindia.com
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the strongest link. 20 years and counting.
THE DQ 20
8
Ingram Micro India
Isi Raah Pe Chalta Chal
B
—K JAISHANKAR MD
www.ingrammicro.com
2012-13
12,024
2011-12
10,547
Source: DQ estimates revenue (`crore)
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August 15, 2013
14.00%
ack to Growth: FY13 augured well for Ingram—growth was back to double-digit and it reclaimed some lost space. While in FY12 Redington overtook Ingram, but FY13 saw Ingram edging out Redington by a whisker. In FY13 Ingram worked with a singular focus on augmenting its core business. Interestingly, Ingram has grown better than Redington during FY13. Aggressive growth strategy worked, but yet the industry is rife with challenges as the overall mood in the distribution industry is down and beset with severe working capital issues that is manifesting in various challenges—from extended payment cycles to cash flow issues. New Mandates: Ingram broad based its portfolio and added new vendors. Asus appointed Ingram as a national distributor for component business which means it would distribute Asus desktops, AIO PC’s, LCD monitors and projectors. Similarly it entered into a pact with Western Digital as a national distributor for entire range of WD products in India. Broadening its Horizon: With an aggressive go-to-market strategy, Ingram took on to opportunities that are of strategic fitment and aimed at adding value to its partners. It also carried on its focus on identifying the growth engines of the future and made early investments towards bringing these technologies to the market through its partner ecosystem. Future Proofing: With data center, networking, and cloud services being industry’s growth engines and the future of IT, Ingram made some moves that can strengthen its emerging tech market capabilities. Its strategic alliance with Netmagic to distribute the latter’s managed hosting and cloud services with a focus on SMB and its alliance with SatNav to cash in on the navigation boom gave it the emerging markets edge. Consumer Market: With nearly 40% of its business coming from the consumer segment, Ingram focused on building consumer services and strengthened its presence in the space. New Investments: Ingram began to offer logistics services to number of telecom players globally and India. In India, the company tied up with JAINHITS to offer logistics and supply chain optimization services. Ingram also forayed into surveillance and security and AIDC (automatic identification and data capture) segments to enhance its portfolio. Outlook: Distributors are cautiously optimistic while looking ahead at FY14, much depends on the IT spending patterns and uptake of large orders from PSU and governments sector that holds the key, but with elections around the bend, growth might take a hit.
www.dqindia.com
A CyberMedia Publication
|
THE DQ 20
9
Redington
Aap To Aise Na Thay
B
—EH KASTURI RANGAN president Non –IT —PS NEOGI president IT
www.redingtonindia.com
2012-13
11,746
2011-12
10,938
Source: DQ estimates revenue (`crore)
46
|
August 15, 2013
7%
alancing Act: Redington India’s performance every year in a way reflects the overall health of the computing industry as being the country’s leading distributor with almost all the leading IT brands under its kitty. But as we look at FY13, the obvious challenges the industry faced were quite evident as Redington’s growth went back to single digit from last year’s 18%. The Pain Areas: As we dissect Redington’s FY13 business performance, like last year H1 was flat but it saw good traction in H2 FY13. The top line growth slowdown can be attributed to the huge degrowth in the components space with the TAM shrinking substantially. Added to that, the lack of liquidity in the market space made collections a growing challenge during the course of the year. Growth of exclusive RD concept accentuated the challenge as the necessity for increasing the credit exposures to such partners steadily increased. What Helped: But despite the challenges, what helped Redington in the second half of the year was uptake from the SMB space. Also Redington managed to secure a few long-pending large projects. Moreover, the good growth in the business of some of its smaller vendors in IT space, addressing niche segments helped it mitigate the lack of growth in its larger portfolios. The strategy: The company adopted a multi-pronged strategy and consciously stayed focused on all available, viable business opportunities, especially in the infrastructure, software, and the enterprise space and it continued to engage strongly with partners who are active in the security, voice, data, and video space. The Non-IT: Meanwhile in the non-IT division, the growth in Apple PC business helped a lot and the smartphone business kept up the growth momentum as well. The commencement of iPhone business in the distribution space, where Redington became the exclusive partner in the general trade category, helped maintain the growth momentum in this category. The digital printing solution business from its exclusive tie-up for HP’s Indigo portfolio showed great momentum as the photo-printing segment accelerated its shift to digital printing technology. Summing Up: The focus during the year was on maintaining business hygiene by focusing on metrics like quality of inventory, efficient working capital deployment, control on manpower cost, sharp thrust on timely AR collection, and overall cost control—and this ensured a decent FY13 for Redington. www.dqindia.com
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A-15, Sector 62, Noida - 201307 Tel: 120-2470111 / 2470123 Fax: 120-2470124 Corporate Website: www.grapecity.com
Email: sales@componentone.co.in Website: www.componentone.co.in
THE DQ 20
10
Oracle India
Inaam Dus Hazaar
C
—SANDEEP MATHUR MD
www.oracle.com/in
2012-13
10,590
2011-12
9,208
Source: DQ estimates revenue (`crore)
48
|
August 15, 2013
15.01%
onsistent Performance: In FY2012-13, Oracle India clocked a healthy growth of 15%, considering the global slowdown in the ISV segment. This helped the company come within the ranks of India’s top 10 IT companies. Based on the performance, Oracle achieved revenues of `10,590 crore from its India operations in 2012-13. For Oracle Financial Services Software (OFSS, or what used to be i-Flex), had revenues of `3,500 crore. About 47% of its revenues come from services business, 29% from technology business, 8% from applications, 10% from hardware business and 6% from middleware. The company claims to have 7,000+ customers across technology and applications division in India. Database Dominance: In India, Oracle has a 63% share in the RDBMS market and is ahead of IBM. While the competition in the database market has heated up in the last few years, Oracle’s competitors are far behind in keeping pace with it. This has been one of the best performing segments for Oracle India in FY2012-13 during which it acquired a number of customers. Its engineered systems continue to contribute in overall business mainly led by database sales in India. Sun-feast: With Sun server, storage, operating-system, and virtualization technology, Oracle continues to empower its portfolio in order to be able to offer end-to-end solutions. In India, Oracle has two India Development Centers as well as Indian hubs for Oracle’s global support, consulting and financial services operations. Through its network of channel partners, the company markets the complete range of Oracle products and services across India, to more than 1,000 channel partners and 7,000 customers in diverse industries. Clouds will rain: Globally, Oracle has about $1 bn in revenues alone from cloud offerings, despite embarking on the cloud journey pretty late. In India, Oracle is witnessing adoption of cloud services across industries like IT/ITeS, telecom, banking and automobile and is thus trying to capitalize on the opportunity. Plus, this move will decide the future for the company. Oracle is also trying to woo customers for cloud through engineered systems-driven strategy. Mid-market Focus: Mid-market continues to be a growth area for the company in India. The company reached out to SMB customers through 1,000 partners in India to offer affordable and integrated technology solutions. At present, the company boasts of about 4,500+ SMB customers in India.
www.dqindia.com
A CyberMedia Publication
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THE DQ 20
11
Dell India
Koshish Karne Waalon Ki...
U
—ALOK OHRIE President & MD
www.dell.com/in
2012-13
9,961
2011-12
8,662
15.00%
pping its Ante: Dell’s sweet spot was once PC and often times it has been seen as a PC company, but over the years it indulged in a shopping spree that saw it acquiring 19 strategic companies in a little over two years and 8 acquisitions alone in 2012 like AppsAssure, SonicWALL, Wyse Technology, Clerity Solutions, Make Technologies, Quest Software, Gale Technologies, Credant Technologies and one acquisition in 2013—Enstratius—made it indeed a formidable force in enterprise computing space. Time to Harvest: But the key question is—this inorganically groomed Dell when stacked with global rivals like IBM to HP and others, how far it can continue to garner and eat into their market share is to be seen. Sure services are growing—globally revenues from enterprise solutions and services represented 34% of Dell’s revenues for the fiscal year 2013—a 4% gain over fiscal year 2012. And if one looks at India, Dell has the largest workforce outside of the US with more than 27,000 employees— covering sales and marketing, manufacturing, services, R&D, customer support and Dell IT. PC is Big: Dell has a significant presence on the PC side in India, right now it holds #3 position in India. But it needs to come out with much more appealing form factors to sustain its momentum. HP is making rapid inroads with its hybrid mobile products and with Lenovo also upping its ante gives Dell immense pressures on the PC market in India. Joining Hands: On the channel side last year Dell announced a new GCC (Global Commercial Channel) structure, with a single point of contact for partners, to lead to higher productivity and improved time cycles and enable more customized programs to support the partners in the market. The new structure protected partner profitability by bringing consistent pricing across different Dell commercial businesses and offer the partners increased growth opportunities with solution-centric offerings and a broader end customer base. For instance, 25%-50% of Dell’s total commercial business comes from GCC and Dell invests heavily in its partners and offers over 100,000 training sessions a year to all partners globally. In and Out: In a recent development Alok Ohrie joined Dell India as its new MD and president replacing Sameer Garde. Ohrie was earleir with IBM as VP, heading STG business and he will be responsible for driving growth for Dell’s India and global markets.
Source: DQ estimates revenue (`crore)
50
|
August 15, 2013
www.dqindia.com
A CyberMedia Publication
|
THE DQ 20
12
HCL Infosystems
Intehaan Ho Gayi, Intezaar ki
U
—HARSH CHITALE CEO
www.hclinfosystems.in
2012-13
9,883
2011-12
10,754
Source: DQ estimates revenue (`crore)
52
|
August 15, 2013
-8.1%
nending Battle: Fraught with the challenges to rediscover its growth trajectory, HCL Infosystems struggled and sought revenues from new initiatives in FY13. Visible from fall in the topline revenues to the tune of 8% over last year, it can be easily gauged how arduous its journey has been to establish its new businesses to compensate the void of about `1,000 crore created by its telecom distribution, which suffered a huge setback as Nokia business shrunk. Multi-pronged Approach: Working on its Aspire model to resuscitate a new life into its business, HCL management realigned the business worth and charted out future roadmap in learning, services, distribution and hardware and solutions business. HCL Learning is a recently incubated business and in early stages of lifecycle maturity while the services business is put on aggressive growth plans, given the opportunity in the managed services space. Its distribution business and hardware and solutions business are still not out of the woods. It created subsidiaries such as Digilife, HCPL, SI, learning, and care. Multi-brand Distribution: The company has gone ahead with its multi-brand distribution strategy and added a number of brands to its portfolio. Even today, the larger chunk of its business (more than 50%) comes from distribution. It aims at making distribution business `10,000 crore in the coming years. The company’s distribution business portfolio expanded as it signed many leading OEMs across IT, consumer electronics, lifestyle products, and office automation as principals. Doing a little unconventional, it partnered with Dell for distribution of wide array of Dell’s enterprise products. Sick Child: HCL’s PC business which is now reduced to single digits continues to be in ICU, as the global demand coupled with inherent issues leave a little space to grow. Last year, there were even rumors of it being sold to Lenovo. The company has created it a separate entity so that it does not clash with its distribution business. Maybe this is the reason, it has been able to bring Dell to its distribution portfolio. Notable Wins: UIDAI awarded the company with one of the largest IT contracts for managed service provider. It also bagged deals on defense, ePDS, etc. However, it played a cautionary stance because of the payment issues related to government projects. It bagged some financial inclusion projects from banks such as the Central Bank of India, PNB, Dena Bank, Sarv UP Gramin Bank, etc. It had notable customer wins in the healthcare space and also got a number of projects in the middle east. www.dqindia.com
A CyberMedia Publication
|
THE DQ 20
13
Cisco Systems India
Is Se Sab Kuch Judta Hai
P
—JEFF WHITE President, Cisco India and Saarc
2012-13
9,785
2011-12
8,891
Source: DQ estimates revenue (`crore)
54
|
August 15, 2013
10.06%
erformance: The year 2012-13 has been good for Cisco overall as well as Cisco India. Cisco made 14 acquisitions over the last 12 months, all of which were in cloud, recurring revenues and software. The India market in particular saw 50% growth for two consecutive quarters followed by 29% in the last quarter (announced in May 2013). Market Leadership: Cisco claims to be number one in eight market segment categories it plays in and has gained market share, across categories. Cisco continues to lead the Indian networking market as per the latest update from IDC LAN tracker, May 2013 for CY Q4’12 with market share of 58.2% for switches and 62.2% for router segments. Leadership Change: The year saw the abrupt exit of Naresh Wadhwa, but coming in his place was Jeff White, who is an old-timer at Cisco. White has been with Cisco since 1997 and has held a number of leadership positions in the US and the Asia Pacific, Japan, and Greater China (APJC) region. Jeff’s appointment is expected to fuel growth and leadership for Cisco in India. Network Security: The company reports gratifying growth rate for its network security business. Cisco launched Cisco Unified Access portfolio, which provides a secure, seamless, and integrated approach to create a borderless enterprise and helps address rapidly changing business needs of organizations across sectors. Data Center: In the data center space, Cisco is relatively a new entrant (entered the market in 2008-09), but the company claims that its Unified Computing System (UCS) has over 20,000 customers globally and achieved top tier ranking. Collaboration: Cisco’s collaboration portfolio is robust and its products are market leading brands—Telepresence, Webex, Jabber, and Unified Contact Center. Digital Cable: TV Cisco has established itself as the leading provider of enhanced TV viewing experiences to more than 30 million Indian homes; a milestone that reinforces its leadership in the digital pay-TV solution market in India. Government Solutions: As part of Cisco’s social inclusion projects, it worked with state governments in India to complete 600,000 student hours of education, 49,000 healthcare consultations, and 55,000 student hours in skills development. Cisco is also one of the technology partners with the Delhi Mumbai Industrial Corridor Development Corporation to provide ICT master planning to four cities.
www.dqindia.com
A CyberMedia Publication
|
THE REAL COST
AUTHENTICATION TCO COMPARISON Management Costs
OF STRONG AUTHENTICATION
Solution Costs
Implementation Costs Server Solution
Assessing the Real Cost of Strong Authentication by comparing the Total Cost of Operation of On-Premise vs. Cloud-Based Authentication Solutions
175 150
COST ($K)
125
RIGHT
CONSIDER UP-FRONT MANAGEMENT AND IMPLEMENTATION COSTS
100 75 50
WRONG
25
CONSIDER UP-FRONT PURCHASE PRICE ALONE
10
50
100
250
500
USERS
Cloud Solution
175 150
60
SAVINGS IN TOTAL COST OF OPERATION
%
90
COST ($K)
UP TO
125
UP TO % REDUCTION IN ADMINISTRATIVE OVERHEAD COSTS
100 75 50 25 10
50
100
250
USERS
$$ FLEXIBLE OPEX PRICING! $$
99
.999
MANAGEMENT COSTS INCLUDE: %
SERVICE AVAILABILITY
Incident resolution Change installation System documentation Virus/security management Reporting Housekeeping Performance capacity management System software upgrades
Quality and Security standards Print admin User Management, Provisioning and On-boarding Storage management Token admin Billing and Invoicing
IMPLEMENTATION COSTS INCLUDE:
2013 2017 UP TO
"Gartner predicts that, by 2017, more than 50% of enterprises will choose cloud-based services as the delivery option for new or refreshed user authentication implementations, up from less than 10% today." -Gartner Magic Quadrant for User Authentication 2012
99.999% Availability User data backed-up Resilience provided Support overhead removed Expert 1st and 2nd line support provided No up-front purchases Opex vs. capex No ‘x’ year renewal cycle Reduced environmental Concerns/ carbon footprint Proactive network monitoring
Proactive server monitoring On demand growth capability No-fork lift implementation Simple integration High level of security High level of data integrity Ability to focus on core business Multi-company/ department capability Multi-tier distributed management
Servers and server licenses Database Maintenance Disaster recovery sites/plans/testing
60% COSTS SAVINGS WITH A CLOUD BASED STRONG AUTHENTICATION SOLUTION
Choosing your authentication solution based on the solution cost alone is a misleading indicator for its Total Cost of Operation. When you carry out a real on-premise vs. cloud comparison you must take into account the overall management and implementation costs. It is clear that the cloud-based solution is more cost effective, with savings of up to 60%, depending on the number of users.
To learn about SafeNet Authentication Service and join a free trial visit http://safenet-inc.com/sas THE D ATA PR OTECTION COMPANY
SafeNet India Pvt. Ltd.
6 Floor, Tower C, Logix Technopark, Sector 127 Noida 201301, India Ph: +91 – 120 – 4020555 Email: info.apac@safenet-inc.com
THE DQ 20
14
SAP India
HANA...Bolo...Bolo
B
—SUPRAKASH CHAUDHURI MD, SAP India
www.sap.com/in
2012-13
8,500
2011-12
6,866
23.80%
ig Year: SAP completed 40 years this financial year and the company claims that 2012-13 was the biggest year ever in its history, both globally and in APJ. The company focuses on five markets covering 26 industries: Applications, mobility, databases, cloud, and analytics. HANA: Clearly, SAP’s sweet-spot is HANA, its in-memory computing technology that is seeing rapid adoption globally and in India. HANA has many facets- it’s an appliance, it’s a type of database, and it’s a platform in itself. It suits both analytical and transaction processing. Fifty percent of HANA deals in Asia are from India, which speaks much about the runrate for HANA business in India. Marquee customers in this area include Essar Group and Usha International. SME and Public Services: SAP’s India business has significant contribution from SME and public industries (education, healthcare, and government). In fact, 80% of SAP customers globally are small and medium businesses. SAP has been reaping the benefits of its focused efforts in the public services segment. Its ‘Made in India for India’ initiative resulted in the creation and launch of three HANA-based applications in the dairy, healthcare, and public security areas. Applications: The applications business which is the mainstay for SAP brings in close to 50% of the revenue. While on-premise ERP continues to get adopted, the line of business applications on cloud is the major growth driver. Key growth segments are social media, CRM-on-demand, Business-by-demand, Ariba, SuccessFactors, and carbon footprint. SAP says that it has 17 mn users on cloud globally. Database: SAP’s acquisition of Sybase many years back has helped the company inch up in the database market, although it is still placed #4 behind Oracle, IBM, Microsoft. But the evidence of growth of Sybase installed base comes from the fact that database and related technologies now accounts for 25% of SAP’s revenue. Mobility: Mobility is a thrust area for SAP and the company reports triple digit growth rate here although on a small base. Again, the enterprise mobility platform came in through Sybase, but the recent acquisition of Syclo has added strength to its offerings in the mobility segments. The company reports good adoption of mobility solutions on Syclo.
Source: DQ estimates revenue (`crore)
56
|
August 15, 2013
www.dqindia.com
A CyberMedia Publication
|
THE DQ 20
15
Mahindra Satyam
Hum Saath Saath Hain...
M
—CP GURNANI CEO
www.mahindrasatyam.com
2012-13
7,693
2011-12
6,396
Source: DQ estimates revenue (`crore)
58
|
August 15, 2013
20.28%
ega Merger: Tech Mahindra announced the formal amalgamation with Mahindra Satyam which had finally received all the necessary government approvals. The turnaround of Mahindra Satyam is symbolically complete with its announcement of an annual revenue of about `7,693 crore. Earlier, it beat the industry growth rate with over 20% increase in revenues compared to the last financial year. Passing the Baton: One of the headlining changes in the last financial year was roping in Manoj Chugh as global head, business development. He is quite active in implementing the young CEO program which encourages the organization to create an environment where every associate believes that he/she owns the place and takes complete responsibility and aligns with the mission of the company. Add Ons: Mahindra Satyam won a large multi-year multi-million contract from a large APAC based Paper & Packaging giant for end-to-end ownership and business transformation for IT applications and infrastructure. They are also selected by a leading US based automobile company to develop and transform its warranty business. The company intends to leverage its alliance with Pega to create a global ‘One Warranty’ system for the customers. It also won a significant deal in enhancing manufacturing operations based on intelligent manufacturing processes for a large natural resources company. On Geographies: Mahindra Satyam claims that it is seeing signs of recovery in the US though recession still holds down in parts of Europe. In Europe, acceptance of reducing some barriers that allows easier flow of technology from India and elsewhere is becoming a reality. Asia, Africa, and middle east were good while Australia and New Zealand were even better economically. Vertical Strength: Manufacturing comes out as a strong vertical this year as the company sees an increased traction in it, particularly in the US and parts of Europe in countries like Germany, France, and Sweden. Manufacturing has led the quarter with 9.9% growth. Technology, media, and entertainment have grown 1.4% while the rest of the sectors have shown a small decline. Manufacturing, aerospace, and discreet manufacturing are interesting to them. APAC continues to be a strong contributor as well. From a technology, media, and entertainment standpoint, the company observed that enterprise software is increasingly getting aligned with big data and data management initiatives. There is also an improved traction from the semiconductor space.
www.dqindia.com
A CyberMedia Publication
|
THE DQ 20
16
Tech Mahindra
Baabul Ki Duwaayen Leti Jaa...
S
—C P GURNANI MD
www.techmahindra.com
2012-13
6,873
2011-12
5,490
25.00%
Source: DQ estimates revenue (`crore)
|
A CyberMedia Publication
ynergizing Operations: Tech Mahindra completed its merger with Mahindra Satyam last quarter, fulfilling the commitment made in April 2009. This is one of the largest mergers in the Indian corporate space. The total head count now stands at 83,063. With this major development and powered by an entrepreneurial culture, Tech Mahindra is leveraging its collective expertise in cloud, analytics, social, security, mobility, and networks to create digital enterprises globally. The number of clients has grown from 131 to 150 clients organically. The Year that Was: Over the year the company launched its new branch in Istanbul, and aims to develop Turkey as a near shore centre for specialized services. It established its first European testing lab in Sweden, and inaugurated a new development centre in Toronto for a banking client. Tech Mahindra entered a global partnership with ThingWorx for its machine-to-machine (M2M) solutions. Key Wins: The company’s order book is brimming. Some of the deals won this year include a large reinsurer in Europe, a leading European mobile telephone major, one of the top 4 banks in Australia, a wireless broadband services provider in Africa, a South Africa based fashion retail company, an American Fortune 500 managed healthcare company, a mobile commerce solution company in New Zealand, a global nutrition, health and wellness company, a strategic energy and utilities account, a Fortune 10 energies and utilities company, a US wireless services provider, and a multi-million dollar system integration and managed services deal across 6–7 countries in Asia and Africa by a leading emerging market telco. On Geographies: Tech Mahindra over the year continuously expanded on its geographical footprints. For instance, in FY13 it strengthened its presence in markets such as Latin America and Africa, and looked for higher opportunities in Europe. The company feels regions like Asia, Africa, and Middle East were good for them and they have been able to improve earning capabilities there by a fairly decent margin. The US business is growing and discretionary spend is coming, however, it continues to be extremely competitive. They are expecting best business results from Europe in terms of new businesses opportunities brought together by a diversified portfolio in telecom. Up Ahead: As we look ahead Tech Mahindra need to look for new opportunities and service offerings like BI, analytics, cloud , M2M, network testing, and mobile data services among others. www.dqindia.com
August 15, 2013
|
59
THE DQ 20
17
Intel India
Thoda Hai Thode Ki Zaroorat Hai...
M
—DEBJANI GHOSH MD, South Asia
www.intel.com
2012-13
6,750
2011-12
6,406
5.37%
aking Efforts to Get Back in the Race: In FY13, Intel laid its entire focus on burgeoning mobility business to compete with Qualcomm and Broadcom in the mobile space. Intel’s dismal growth is a proof of how laggard the PC market has been in India and globally. It has to rely on other businesses such as data center, cloud, mobility, and security to sustain its outlook. In FY13, the company had a crawling growth of only 5% with revenues growing from `6,406 crore to `6,750. However, it has not entirely left its core PC business and continued to generate revenues from the under penetrated market. Marketshare Erosion: Over the year Intel lost a chunk of market to its archrival AMD. In FY13, AMD was able to clinch 15% marketshare from Intel. The biggest blow came from the Uttar Pradesh government which chose AMD processor over Intel to offer laptops to students under the free laptop scheme. Similarly, Intel allowed its competitor to grab a meaty share in regional markets. In order to strengthen its position in India, Intel conducted a number of programs to spread awareness about PCs in India. It also launched a nationwide campaign (mainly 10 states) to explain how a PC can change their lives. It carried the campaign under the National Digital Literacy Mission in collaboration with Nasscom. Cloud and Data Center: The company is exploring opportunities in the cloud and data center space since it is a growing segment in the country. In FY13, the company partnered and invested in the data center space in India and invested $8.8 mn in an Indian data center startup called NxtGen data center and cloud technologies. Plus the company is working with service providers for virtualization and cloud. Mobility: Intel is making frantic moves in the mobile and tablet space in the hope it would be able to give some competition to Qualcomm and Broadcom. A number of OEMs in fact unveiled tablets in the Indian market powered by Intel. But there was not much craze for them. Its moves on the iOS and Andriod platform and smartphone arena are also in line but in the nascent stage. Intel India organized a mobility road show in Bengaluru to outline its plan to accelerate new mobile device experiences across the company’s growing portfolio of smartphone and tablet offerings. The company is also set to play its trump with what it claims its low-power, high-performance microarchitecture named Silvermont and Intel Atom SoC for tablets.
Source: DQ estimates revenue (`crore)
60
|
August 15, 2013
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THE DQ 20
18
Microsoft India
Baadalon Ki Chhaon Mein
M
—BHASKAR PRAMANIK Chairman
www.microsoft.com
2012-13
6,122
2011-12
5,417
Source: DQ estimates revenue (`crore)
62
|
August 15, 2013
13.01%
ore Pain, Less Gain: In FY13, Microsoft came out with new versions of its flagship products—Windows 8, Office 365, Office 2013, etc,—the highest in its history. It was expected to witness a considerable traction for the new versions, mostly through upgrades, if not through new adoptions. However, the reality is something else. It crawled to grow at 13% compared to the previous year. In the latter part, the company encountered slow adoption by enterprises, sluggish decision making in the government corridors, and lacklustre performance of the telecom sector. These issues might have contributed to the factors that forced Microsoft India to replace Sanket Akerkar with Karan Bajwa as its new managing director. Choppy Waters: Microsoft’s Windows 8 was one of the ambitious launches in the company’s history. But the product did not take off as was imagined. Transitioning market effect seems to have affected its sales. Maybe this was the reason that the company made quick changes into the operating systems and launched upgraded version—Windows 8.1 this year. Its endeavors to make it successful on multiple platforms—PC, tablet, and smartphones—were in the starting phase, despite many OEMs such as Sony, HP, Dell, Acer, etc, launched devices enabled by Windows 8. Growth Drivers: Microsoft Enterprise Partner Group (EPG) customer revenue grew more than 250%. Also Microsoft added over 15,000 Azure customers in India. On an average, it added 1,500 new Indian customers every month for Windows Azure, thereby catapulting Windows Azure revenues by 150% on YoY basis. Key customers who adopted Azure are Maruti, Infosys, and Essar. Its Windows server data center revenues jumped 150% YoY in FY13 while Systems Center by 60%. Server business revenue were in double digits too. According to IDC, its Hyper-V market share at the end of Q3 FY13 was 35.6% and Vmware share was 55.4%. Its SQL server premium revenues also grew by 25% YoY. Dynamics of Business: In FY13, the company had some notable customer wins. If the company is to believed, in the last four years it has added more than a customer a day for dynamics. It witnessed a healthy growth in retail (eg, Bombay Dyeing and SSPIL) for Dynamics AX business, while CRM online increased over 300% in FY13. Similarly, the Office 365 also brought cheers with customer acquisitions such as HT Media, Godrej, Croma, Bajaj Finserv. Also, Microsoft Lync quietly gained momentum with growth of about 50% in India.
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THE DQ 20
19
iGate Global Solutions
Jab Koi Baat Bigad Jaye
B
—GERHARD WATZINGER CEO
www.igate.com
2012-13
5,900
2011-12
4,823
Source: DQ estimates revenue (`crore)
64
|
August 15, 2013
22%
rand Matters: While the ouster of Phaneesh Murthy created a shadow on iGate’s brand, but overall FY13 augured well as it chased multimillion deals leveraging on its Patni acquisition. The company’s outcome based business model created a flutter—for instance, last year it launched a highly visible marketing campaign for its ‘business outcomes’ proposition in its primary markets—North America and UK. The company worked with the goal of shifting the traditional IT outsourcing model from ‘hours worked’ basis to a strategic ‘outcomes’ based proposition. Making it Work: All the new engagements of iGate are based on its iTOPS business outcome model, and the company says it has got huge value proposition and is increasingly gaining acceptance in the industry. Its customer pipeline is strong and iGate has significantly enhanced its visibility with customers and the markets in general. Fixing Things: Meanwhile in May 2012, the company delisted Patni from the Indian stock exchange and then also delisted its American Depositary Receipts (ADR) listing on the NYSE. To further simplify its corporate structure for enhanced governance and compliance, iGate changed the legal name of Patni to iGate Computer Systems and made similar name changes to a number of Patni’s subsidiary entities as well. So clearly corporate restructuring, continuing the success of a complicated integration process, the company subsequently commenced capital restructuring efforts to simplify the complex corporate structure resulting from the acquisition of Patni, consolidate its investor base in the US and enhance shareholder value. Upping its Ante: In August 2012, iGate inaugurated a new facility in Loudoun County, Virginia. Made investment of over $1mn in this facility and said that it will allow it to deliver a wide range of technology consulting services for government agencies and businesses, and offer ‘designbuild-operate-maintain’ services for federal government projects. This expansion project is expected to create 250 new jobs over the next two to three years. iGate installed a 250-seat offshore development center for its client— the mining company, Rio Tinto in its special economic zone facility in Pune, India. Also iGate commenced development of a state-of-theart training center in Pune. Spread across over 1 mn sqft, this center will have the capacity to seat approximately 5,000 people in 500-seat training rooms. www.dqindia.com
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THE DQ 20
APC By Schneider Electric India
20
Thandi Hawa Yeh Chaandni Suhani
K
—ANIL CHAUDHRY Country President
www.apc.com
2012-13
5,508
2011-12
4,790
Source: DQ estimates revenue (`crore)
66
|
August 15, 2013
15.00%
eeping Pace: APC Schneider’s IT business saw significant growth in the cooling solutions business, specifically in in-row and room cooling solutions. APC Schneider registered a growth of 15% in the IT business especially with data center and small office home office (SOHO) network segments. Services business registered substantial growth in market share as against last year driven by the launch of data center life cycle services. They saw growth in the data center and cloud space from telco and hosting services. The company sees large scale projects coming from the government. Overall, India posted good growth in IT but was weighed down by difficulty in financing for infrastructure projects. Growth areas: Growth in SOHO has mainly been due to the penetration of the internet to more areas in India. APC Schneider has also seen growth in data center and cloud space from telco and hosting services. Another growing segment, they claim, is IT and ITeS, which they will continue to invest in. With the acquisition of Uniflair and APW President, the company’s addressability of the market has increased by 15%. This business has grown rapidly in the past year especially in the telecom sector, fuelling growth for the company’s IT. The focus this year will be on end-to-end solutions. Domestic Focus: The focus in India will be on a complete portfolio, focusing on an end-to-end solution. Value-add will include focus on the services business and engagement in the complete data center lifecycle management which includes managing data centers and energy efficiently. The company also saw a significant change in leadership as it appointed Anil Chaudhry as its India head. Strategy: The strategy for the current financial year includes IT as the main focal point—in critical power, UPS, etc. In the non-IT industries like healthcare, energy and pharma, critical power is a focus. Home business networking is an important domain in India and the needs to be addressed are very country specific. Datacenter services like software suite service is a grwth driver and data center infrastructure management(DCIM) is a big initiative for the company. The company has also increased its engagenment with channel partners, increasing the number from 6,000 to over 8,000. Capitalize Opportunities: There has been a big shift in the IT market towards cloud with hosting environments, and the company claims that it is well positioned to capitalise on the opportunities. The company invests a lot in research and development activities.
www.dqindia.com
A CyberMedia Publication
|
The DQ 50 RANK
COMPANY
RANK
21
MphasiS
36
KPIT Cummins Infosystems
22
Lenovo India
37
Zensar Technologies
23
Savex Computers
38
Glodyne Technoserve
24
Capgemini India
39
Texas Instruments
25
Syntel
40
Tata Technologies
26
Acer India
41
NIIT Technologies
27
Samsung India
42
Hexaware Technologies
28
Aricent Group
43
Rolta India
29
CSC India
44
Compuage
30
Genpact
45
CMC
31
Zylog Systems
46
Core Education & Technologies
32
Sony India
47
Canon India
33
Mindtree Consulting
48
Infotech Enterprises
34
Polaris Software Lab
49
EMC India
35
Tulip Telecom
50
Rashi Peripherals
|
A CyberMedia Publication
COMPANY
www.dqindia.com
August 15, 2013
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67
THE DQ 50
MphasiS CEO: Ganesh Ayyar
www.mphasis.com
Banking on BFSI
T
21 2012-13
5,323 16.71%
2011-12
4,561
he biggest shift for the organization last year was reducing its revenue dependency on its parent company HP. Earlier, over 60% of Mphasis’ revenue came from HP. Acquiring Digital Risk in the banking and capital market space in December changed their revenue mix, reducing their over-dependency on revenue from HP—which now stands less than 50%. Another area of growth was SMU-specialized market unit. Mphasis has hired a consultanting company to define their go-to-market operations, classify accounts, and analyze SMU’s approach. They are building solutions like billing services and taking it to market. More alliances are being formed with companies in emerging technologies. Mphasis claims it improved operational excellence from 70% to 90% by making investments and hiring Doctorates. Mphasis has also been focusing on IP and filed its first patent.
HIGHLIGHTS
•• Appointed Kumail Tyebjee as vice president and business leader of mobility service line •• Launched a new solution to automate processing of insurance applications
Source: DQ estimates revenue (`crore)
Lenovo India MD: Amar babu
www.lenovo.com/in
Right Moves
W
22 2012-13
ith a diversified product portfolio Lenovo during FY13, in addition to its traditional line of businesses, made all the moves to grow its smartphone business. It is gunning to garner enterprise mandates for its smartphones and trying to eat into BlackBerry’s market share. Lenovo has a strong market share in the education segment. In FY13 its market share in education business was 24.6%, however, in Q4 FY13 the company exited at 26.6% market share with #1 rank—indeed an impressive performance in a closely fought battle with Acer. On an annualized basis, Lenovo’s overall PC market share in unit terms is in excess of 15% and Q1 FY13 was particularly good with market share going up to 17%. Has been the leader in the enterprise space since six consecutive quarters.
5,315 28.00% HIGHLIGHTS
2011-12
4,152
•• #1 player in the Very Large Enterprise (VLE) segment •• Lenovo recently reached the 1,200 exclusive stores (LES) milestone in India in 2013, and
plans to reach the 2,000 mark by the end of the year Source: DQ estimates revenue (`crore)
68
|
August 15, 2013
www.dqindia.com
A CyberMedia Publication
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THE DQ 50
Savex Computers MD: Anil Jaggasia
www.savex.org
On a Winning Path
D 23 2012-13
4,681 58.30%
uring FY13, Savex Computers strengthened its position in DQ Top 50 rankings with a good topline growth. Over the year, the company broadbased its product portfolio and upped its delivery footprint. This has helped the company tide the difficult market conditions. What helped is its alliance with the leading vendors like HP, Samsung, Microsoft, Logitech, Acer, and others. Meanwhile the company’s headcount has also moved up from 478 in FY12 to 571 in FY13 which clearly shows its upward swing. Clearly, it’s an impressive perfomance in the cut throat IT distribution market and Savex is certainly the company to watch out for in FY14. Under systems and devices the two growth drivers—smartphone with 1,877 crore and laptop 1,187 crore—contribute a major portion in company’s upward revenue followed by desktop with 271 crore and server 212 crore. With more than 7,000 channel partners, retailers, corporate Rresellers, VARs, and system integrators company is moving towards its aim of addressing the SMB market.
HIGHLIGHTS 2011-12
2,972
•• Peripherals, consumables, and laser printers notched up the top slot contributing about
37% and 24%, respectively •• Aggressive focus on the SMB market
Source: DQ estimates revenue (`crore)
Capgemini India CEO: Aruna Jayanthi
www.in.capgemini.com
Winning Stride
C 24 2012-13
apgemini continues to perform better than its competitors in the services business. In FY13, the company maintained its growth trajectory with about 20% growth. From `3,830 crore, it revenues grew to `4,600 crore. No doubt growing footprint in the country has helped Capgemini globally to boost its business. Its India center has helped it become a global firm with delivery centers across regions. Out of the global strength of 1.2 lakh, the company has over 42,000 employees in India of which 20-25% cater to clients in Europe. In order to further strengthen its operations through its India delivery center, the company is poised to increase its headcount to 70,000 by 2015. To drive growth, the company chased verticals such as retail, utilities, tax, financial services, and smart metering with sizeable investments in market, customer management, and supply chain.
4,600 20.10% HIGHLIGHTS
2011-12
3,830
•• To increase its workforce to 70,000 people in India by 2015 •• Roped in Cognizant executive Natarajan Radhakrishnan to spearhead its consulting
practice Source: DQ estimates revenue (`crore)
|
A CyberMedia Publication
www.dqindia.com
August 15, 2013
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69
THE DQ 50
Syntel CEO and President: Prashant Ranade
www.Syntelinc.com
Continuing the Success Ride
T
25 2012-13
4,042 25.96 %
2011-12
3,209
he company has shown consistent growth YoY and its revenues are reflective of its performance. In FY13 too, Syntel added new partnerships across application management, business process management, mobility, and big data, with industry leaders such as Pega, Hortonworks, QlikView, and MicroFocus. Syntel has been invited to partake in large deal frameworks—comprehensive services for end-to-end lifecycle management for large conglomerates. These deals are spread across various specialties, and Syntel is winning an increasing ratio of such deals, highlighting their commitment to focus on capabilities and quality services. It also opened a new global delivery center in Tirunelveli and will be launching another one in Manila, Philippines towards the end of this year. These new centers will diversify and enhance existing delivery capabilities. It is also planning to invest $60-65 mn in emerging verticals such as cloud and mobility during this year. A total of 19 new customers were added in 2012.
HIGHLIGHTS
•• Nitin Rakesh rejoined as president with focus on business development •• Added 12 new customers duirng FY13
Source: DQ estimates revenue (`crore)
Acer India MD: Harish K. Kohli
http://www.acer.co.in
In Better Shape
F
26 2012-13
3,942 10.00%
2011-12
3,591
Y12 was a challenging year for Acer with growth falling to single digit. In FY13, the story was much better—it doubled its growth and reclaimed some of its lost ground. Over the year, Acer upped the ante on the retail space with an outreach program to address smaller towns through the gallery program—approximately 5,800 galleries and 1,070 towns currently. Acer maintained its segmental focus with government, BFSI, K-12 and higher education, corporate and SMB mandates that worked well. In terms of partner strategy, the company strengthened its two-tier distributor model with focus on retail space through additional Acer Malls, Acer Points, and Acer Galleries. Overall the key wins from ELCOT, Gujarat Informatics, Government of Maharashtra, and Goa, AMTRON, Infosys, Mahindra & Mahindra, Manipal Academy of Higher Education, NIIT, Educomp, RGUKT, Max Life Insurance among others made it relatively a good year for Acer.
HIGHLIGHTS
•• Doubled its growth and reclaimed some of its lost ground •• The company strengthened its two-tier distributor model with focus on retail space
Source: DQ estimates revenue (`crore)
70
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August 15, 2013
www.dqindia.com
A CyberMedia Publication
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THE DQ 50
Samsung India Country Head: Vineet Taneja
www.samsung.com
A Tablet-studded Galaxy
F
27 2012-13
3,624 23.18%
2011-12
2,942
Y2012-13 fared well for Samsung India despite the business imperative not being focused on its IT business. However, the entire focus was around mobility space which catapulted its growth. Thus, the company clocked the highest growth in the tablet market. The company rules the tablet market with #1 position, with a considerable margin from the #2 position held by Apple. Ranjit Yadav who handled Samsung’s mobile and IT biz moved from the company, handling the baton to Airtel Executive Vineet Taneja. Perhaps this was an indication that the Korean company wanted to strengthen its position as a mobile brand in India. While Yadav was ably helped Samsung grow all its businesses, Taneja is more inclined towards the mobility space. Samsung, of course, is an undisputed market leader in the tablet space with about `1,999 crore clocking in from this business in India. Samsung’s Galaxy Tab in varied models helped the company to drive success.
HIGHLIGHTS
•• The company rules the tablet market with #1 position, with a considerable margin from
the #2 position held by Apple Source: DQ estimates revenue (`crore)
Aricent Group CEO: Frank Kern
www.aricent.com
Connecting the Dots
I
28 2012-13
2,957 0.99%
2011-12
2,928
n FY13, Aricent continued its focus on delivering R&D engineering services and software frameworks in the communications domain to some of the leading telecom equipment manufacturers, semiconductor vendors, and independent software vendors. With the rapid growth in the 4G/LTE market, Aricent saw a lot of traction for its LTE enodeB and EPC (evolved packet core) software frameworks and related R&D engineering services. It added more than 20 new clients to its LTE business in FY13, increasing its total LTE engagements to more than 50 accounts. Overall, it added more than 50 new customers across various technologies, besides retaining and winning new businesses from its existing clients. Leveraging its deep domain expertise in communications technologies, the company is focusing on technologies such as software defined networking (SDN), Self-Organizing Networks (SON), voice over LTE (VoLTE), and Wi-Fi to fuel its future growth. As on March 31, 2013, Aricent group had 10,935 regular employees globally.
HIGHLIGHTS
•• Frank kern was appointed as CEO •• Appointed Eric D Buhrfeind as its senior vice president, global head of HR
Source: DQ estimates revenue (`crore)
72
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A CyberMedia Publication
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THE DQ 50
CSC India MD: Neeraj Nityanand
www.csc.com/in
Hard Times
I 29 2012-13
2,780 -1.87%
2011-12
2,833
n FY13, CSC India devoted time evaluating its strategy to reignite the business. Hence the year was flat for the company and even suffered marginal degrowth due to reshuffle. The reshuffle brought a new head for India business, Neeraj Nityanand. He replaced Brian J Manning. The slowing global market, particularly the US and Europe affected the company’s growth. Meanwhile the company also started exploring Asia and Indian markets more closely. The headcount came down to 23,500 from 24,000 last year. The key verticals where it saw good traction were BFSI, healthcare, manufacturing, and government. It made moves to expand service portfolio with key acquisitions like Infochimps, a provider of big data platform-as-a-service. The company is thus making aggressive moves to accelerate the development of its data services platform, to quickly scale its big data business and offering customers advanced data analytics.
HIGHLIGHTS
•• Appointed new MD India, Neeraj Nityanand •• Challenging year due to global crises
Source: DQ estimates revenue (`crore)
Genpact CEO: NV Tyagarajan
www.genpact.com
Steady March
I
30 2012-13
2,612 56.13%
2011-12
1,673
n FY13, Genpact grew significantly with an organic growth rate of about 56%. Though the growth is less than what it witnessed last year, as the growth in FY12 was the direct impact of Headstrong acquisition. Its revenues grew from `1,673 crore to `2,612 crore. With a focus on the most promising industry verticals and solutions that integrate process, technology, and analytics, Genpact reaped on client loyalty. Revenues from global clients grew significantly with 77% growth. Its business process management revenues grew because of banking and financial services, consumer packaged goods, life sciences and healthcare, and business services. In FY13, it established 55 client relationships each contributing revenues of $5–15 mn, up from 41 such relationships in the previous year. The company’s attrition rate was at 25%, one point higher compared to 24% for the same period in FY12. Its annualized revenue per employee was $35,600 up from $33,400 in the previous year. It expanded its workforce from 58,600 to 60,200.
HIGHLIGHTS
•• High double-digit growth comes organically •• 77% growth in revenue from global clients
Source: DQ estimates revenue (`crore)
|
A CyberMedia Publication
www.dqindia.com
August 15, 2013
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73
THE DQ 50
Zylog Systems CEO: Sudarshan Venkatraman
www.zylog.co.in
Going Gets Tough
A 31 2012-13
2,500 10.00%
2011-12
2,272
fter a trailblazing FY12, things slowed down—growth nosedived to 10% and this clearly reflects tough market conditions over the last year. For instance, consolidated net profit for FY13 was at `115.6 crore against `205.36 crore for FY12, a decrease of 43.4% on YoY basis. The company attributes the challenging financial year to the direct costs vis-à-vis the revenue have jumped 2.9% YoY which was due to re-deployment onsite costs due to several projects and manpower related issues which the company says are in the process of getting resolved during the FY14. The PAT has also taken a sizeable hit primarily due to substantial increases in interest and depreciation charges. Zylog Systems raised $20 mn during the first quarter of the FY14 by diluting its equity capital by way of a GDR offering. This would enable the company to meet its expanding capital expenditure needs for the FY14 and would also result in savings in interest costs.
HIGHLIGHTS
•• In the domestic sector, Zylog added a number of customers across industry segments •• Leverages on long standing global relationships for global account creation
Source: DQ estimates revenue (`crore)
Sony India MD: Kenichiro Hibi
www.sony.co.in
Switched to Channel Model
W
2012-13
2,387 8.01%
hile Sony rode on the back of VAIO success for two consecutive years, but FY13 saw a sharp decline in VAIO adoption. Its revenues crawled marginally from `2,210 crore to `2,387 crore with mere 8% growth. However, India is one of the growth territories for the company where it looks at multiple opportunities to accelerate its revenues from laptops, tablets, and digital camera business. In FY13, the company embarked on to the channel model but suffered dip in sales due to its changed strategy. The company’s Kareena Kapoor campaign did not see any additions. Clearly, the global effect of slowing PC market caught its business in India too. Like its competitor Canon, Sony faced a stiff competition from the smartphone makers who offered high-pixel cameras integrated into their smartphones. It affected the sales of entry level cameras in India. However, unlike Canon, it looks at Indian weddings as a growth opportunity. While India is one of the fastest growing territory, Sony has to look at innovative solutions offered at a competitive prices.
2011-12
2,210
HIGHLIGHTS
32
•• Launched Sony VAIO Duo 11 •• Embarked on to the channel model
Source: DQ estimates revenue (`crore)
74
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THE DQ 50
Mindtree Consulting Co-founder and CEO: Krishnakumar Natarajan
www.mindtree.com
Heavy Structural Changes
M 33 2012-13
2,361 24.00%
id-sized IT provider Mindtree reported impressive reveneus for FY13. The topline growth of 23% is double the IT industry’s growth. But top management attrition is an area of concern for the company with some key exits in the recent past. FY13 also saw the company realigning its organizational structure as per recommendations by management consultant Bain & Co and divided its operations across four focused business segments. But the revenue guidance of $ 1bn in five years might be an uphill task given the current market realities to achieve that company needs to go on an inorganic spree. In terms of business, the IT services revenue grew by 14.7%. Among verticals, telecom grew 32.2% followed by manufacturing & retail, which grew by 15.6% and BFSI which grew by 14.2%. Europe saw the highest growth among regions at 21.6%, followed by a 6% growth in the US. Infrastructure management and tech support grew by 41%, followed by development revenue that grew by 24%.
HIGHLIGHTS 2011-12
•• Announces an aggressive revenue target of $ 1bn in five years •• Embarks on leadership and talent grooming initiatives aimed at creating strong
1,905
leadership pipeline Source: DQ estimates revenue (`crore)
Polaris Financial Technology CEO: Arun Jain
www.polarisft.com
Banking on Products
B
oth top line and bottom line remained positive but Polaris did garner attention with media reports cited that the company is planning to sell its services arm and retain its product portfolio which it vends on intellect suite of solution for the BFS space. The company till now had denied it but did go for organizational restructuring. It also expanded its core leadership by going in for a multi CEO model with each CEO responsible for one business unit and announced its intent to transition to outcome based model. Polaris also signed a definitive agreement with US based Numerix, a leading provider of cross-asset analytics for derivatives valuation and risk management. The partnership will strengthen Polaris intellect risk and treasury product with Numerix risk analytics for Basel regulatory compliance.
34 2012-13
2,308
2011-12
2,052
12%
HIGHLIGHTS
•• Launched its 8012 FT—the world’s first design center dedicated to financial technology
Launched its Research, Innovation, and Development Center (RIDC) in Belfast, UK Source: DQ estimates revenue (`crore)
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THE DQ 50
Tulip Telecom CMD: Col HS Bedi
www.tulip.net
The Fall of Icarus
F
2012-13
2,299 -15.04%
Y13 is perhaps the worst year in Tulip’s history. It is not just about the negative growth it had but also about the debt on it. The company has around `3,346.79 crore liabilities (long-term and short-term) as on March 31, 2013. It has also defaulted to repay the Foreign Currency Convertible Bonds (FCCBs) which resulted in downgrading of the company’s credit rating. Company’s revenue fell by 15% in FY13 from `2,706 crore to `2,299 crore. Given the bad financial health of the company, it has approached the Corporate Debt Restructuring (CDR) Cell to restructure its debt. It was on huge expansion plans in the previous year and had also gone through management restructuring. In addition, like many companies working on government projects, Tulip also has a lot of capital blocked in government projects. In current circumstances, the outlook looks hazy as it continues to struggle and report huge losses. It would be no surprise if its revenues slip even more next year. Its data center business does not seem to pay off well from which it was expecting a revenue of `1,000 crore.
2011-12
2,706
HIGHLIGHTS
35
•• Revenues are on a downward ride with 15% negative growth •• Challenged with liabilities of `3,346 crore
Source: DQ estimates revenue (`crore)
KPIT Cummins Infosystems CEO & MD: Kishor Patil
www. kpitcummins.com
Racing Ahead
S
2012-13
2,239 49.27%
tanding tall at a revenue of `2,238 crore in FY13, KPIT reported a whopping growth of 49%. The company’s sales grew by 14% to `613.21 crore in AprilJune quarter, meeting the market expectations. The US contributed about 74% of the revenue while Europe and the rest of the world accounted for 13.12% and 11.9%, respectively. Over the year, KPIT provided milestone based discounts to some customers which had an overall impact of around 100 basis points. Effective from April 1, 2013, KPIT Cummins gave salary hikes to all its offshore and onsite employees. The company also entered into a strategic alliance with Icertis to jointly deliver high quality ERP solutions on the cloud to their customers. This integration will deliver the first end-to-end Windows Azure-based transportation management solution in the marketplace. KPIT had filed 40 patents in the last two years. Company has joined Infor Partner Network to re-sell and service Infor’s leading business application software. The partnership will expand the geographic reach of Infor and its products in the fast growing geographies of India, Sri Lanka and Banglades.
2011-12
1,500
HIGHLIGHTS
36
•• Kishor Patil, CEO & MD was nominated as a finalist for Ernst & Young entrepreneur of the
year, India 2012 award Source: DQ estimates revenue (`crore)
|
A CyberMedia Publication
www.dqindia.com
August 15, 2013
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77
THE DQ 50
Zensar Technologies CEO: Ganesh Natarajan
www.zensar.com
Boosted by Manufacturing, Insurance
Z
37 2012-13
2,114 18.63%
2011-12
1,782
ensar Technologies reported 19% growth in FY13 as company’s revenues grew over last year from `1,782.48 crore to `2,114.52 crore, and the profits after tax grew by 10% from `158.71 crore to `174.53 crore. The success of the vertical model for Zensar is visible from performance of the two key verticals—manufacturing and insurance—which grew by 28.4% and 26.7%, respectively during the year. In last six months of FY13, it signed 17 multi-million dollar deals. The most significant of these deals include Assurant Health, where Zensar will assist the client in meeting challenges posed by the continuing implementation of the provisions of the Affordable Care Act of 2011. The company performed well despite challenges in the global markets. In the latter part, the company saw situation improving in Europe. Zensar fully integrated Akibia, which it had acquired in 2010, strengthen its infrastructure management portfolio. Plus, the currency crises in India also helped the company.
HIGHLIGHTS
•• Manufacturing and insurance grew 28% •• Zensar wins over $21 mn deals in October
Source: DQ estimates revenue (`crore)
Glodyne Technoserve CEO: Annand Sarnaaik
www.glodynetechnoserve.in
Embracing Degrowth
F
38 2012-13
2,090 -21.19%
2011-12
2,652
Y13 turned out a struggling year for the company like any other company involved in government projects. Glodyne’s growth trajectory came to halt and witnessed degrowth of 21%. The company became the victim of cash flow and suffered losses. It clocked revenue of `2,090 crore against `2,652 crore last year. Not only the topline declined, but also the bottomline pangs emerged. In addition, its acquisition of US based companies DecisionOne and Comat Technologies did not seem to pay off, depriving the growth it was riding on for the last few years. With more than 1,600 employees in North America, DecisionOne is still not integrated with Glodyne, an issue hurting its revenue. While there was no valuable addition to customer portfolio in FY13, the revenues came largely from long-term contracts. It had successfully completed ‘E-Shakti’ labor management project in Maharastra last year. The company’s social and financial inclusion projects are still a benchmark which continued to pay.
HIGHLIGHTS
•• It registered degrowth of 21% in FY13 •• DecisionOne merger is still pending
Source: DQ estimates revenue (`crore)
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THE DQ 50
Texas Instruments MD: Santhosh Kumar
www.ti.com/ww/in
Year of Introspection
F
Y13 brought in some bad news to TI when globally it decided to cut 5% of its workforce—about 1,800 employees. This had its ramifications in India as well. As per reports by December 2012, TI had laid off about 500 employees in India and had completely closed one of its business units. With these cost cutting measures, TI globally intends to save around $400 mn. Industry analysts aver that TI’s mobile chip business had gone into rough weather as increasingly OEM’s use their own home grown chips thereby, reducing their dependence of third party chip makers like TI. In this backdrop, Bobby Mitra, TI India’s MD for the last 12 years also moved out to take a global role and was replaced by Santhosh Kumar who assumed as its new MD for India.
39 2012-13
2,060
2011-12
1,872
10%
HIGHLIGHTS
•• Inked strategies to focus on more profitable segments •• Appoints Santhosh Kumar as its new MD for India
Source: DQ estimates revenue (`crore)
Tata Technologies CEO and MD: Patrick McGoldrick
www.tatatechnologies.com
Solid Performance
T
2012-13
2, 045 22.00%
his company founded in 1989, secured their position among the top 50 companies in FY12. The company also signed strategic partnership with Developing Complete Vehicles (VPD). Tata Technology is also the only India based engineering services organization capable of delivering a full vehicle programme like EMO electric vehicle study. The company has also got a combined global work force of more than 6,300 employers serving clients worldwide. During FY13 the company achieved a major milestone of crossing `2,000 crore in top line revenues. In tandem it posted an impressive `300 crore in PAT. The company attributes the impressive traction in its ability to garner long term multi-year engagements that had manifested in good revenue yield. Last year introduced several new offerings, the significant being its Global Engineering Centre (GCC) offering that provided its customers a competitive advantage beyond traditional offshoring as it distributes responsibility for engineering and product innovation across global teams without the segregation of low to high complexity work regionally.
2011-12
1,670
HIGHLIGHTS
40
•• Enhanced its position in industrial equipment sector by acquiring Cambric Corporation
Ratan Tata retired from the Tata Technologies board last December Source: DQ estimates revenue (`crore)
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79
THE DQ 50
NIIT Technologies CEO: Arvind Thakur
www.niit-tech.com
Maintaining Stable Growth
T
41 2012-13
hough NIIT Technologies grew 28% YoY in FY13 maintaining its growth momentum by growing at the same rate over the previous year, but export revenue went down by 8% and contributed only 27% as compared to 35% last year. Last year, company acquired a development center at Manila, Philippines which helped them to increase global delivery capability and geographic footprint. Around 38% of its revenues were derived from the US market, 39% from Europe and the Middle East, and 23% from Asia Pacific and India. Travel and transport showed maximum traction with 38% growth and contributed to 40% of total revenues. Other segments of focus like BFSI, manufacturing, and government contributed to 32%, 7%, and 8% of the revenue mix respectively. Revenues from NIIT Tech’s top five clients expanded by 37% during FY13.
2,021 28.00% HIGHLIGHTS
2011-12
1,576
•• Added 796 people during the year taking the total head count to 8,158 •• The company also achieved #6 rank in DQCMR’s ‘Best IT Employers Survey 2012’, an
industry-wide employee satisfaction study Source: DQ estimates revenue (`crore)
Hexaware Technologies Chairman: Atul Nishar
www.hexaware.com
Entering into the Big League
F
2012-13
2,019 39.24%
ocus on core strengths paid the company with a healthy growth of 39% in FY13. Its revenues grew from `1,450 crore to `2,019 crore. For the last 10 consecutive quarters, Hexaware has delivered a revenue growth in excess of 6% QoQ (CQGR) through organic means, which is well above the industry average. For the last few quarters, the company’s profitability metrics have been superior in comparison to its peers, specifically when the global markets were in muddy waters. The company continued to grow and expand with a new delivery center in Dallas in the US with a capacity for 150 engineers. Besides, it has global delivery centers in Mumbai, Chennai, Pune, Nagpur, and Bengaluru in India; and three Nearshore Delivery Centers at Saltillo in Mexico. It bagged a number of fat deals in markets such as US and Europe. It signed a large deal, with revenue estimated at $30 mn, with an existing Fortune 500 client in the US for a period of 3 years. It is also focused on verticals such as healthcare and insurance to explore the opportunities. All in all, its top 10 clients contributed 50% of its revenues.
2011-12
1,450
HIGHLIGHTS
42
•• Rajesh Kanani appointed as CFO •• Expanded reach and opened delivery center in Dallas
Source: DQ estimates revenue (`crore)
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THE DQ 50
Rolta India CMD: Kamal K Singh
www.rolta.com
Steady March
I
2012-13
2,011 8.12%
n FY13, the company continues to grow in single digits but the growth trend is encouraging, given the line of business which has contributions from exports and domestic markets. With 8% growth, its revenue went from `1,860 crore to `2,011 crore. The growth partly comes from inorganic moves as Rolta acquired AdvizeX, a US based company. The acquisition will add over 2,500 customers to Rolta’s customer base. The company also established strategic global partnerships with Oracle and SAP. It is also engaged in a project to develop a sophisticated traffic and environment management solution for the City of Nanjing, China in preparation of the upcoming Youth Olympics. Rolta won a contract for complex spatial adjustments for field assets in support of a Smart Grid initiative at a large utilities company in southeast United States. It also won a prestigious contract for the development and implementation of a comprehensive GIS system for the Saudi Ministry of Interior. India’s largest petroleum company recently awarded a follow-on project for storage terminal design and engineering information management solutions to Rolta.
2011-12
1,860
HIGHLIGHTS
43
•• Bagged $4 mn deal in North America from a Fortune 100 company •• Acquired a US based company AdvizeX
Source: DQ estimates revenue (`crore)
Compuage MD: Atul H Mehta
www.compuageindia.com
Growing Clout
T
44 2012-13
1,961 23.00%
2011-12
1,598
he company has been focusing on its IT and telecom verticals as it has identified many opportunities in these areas. During the year, Compuage Infocom strengthened its relationship with HP. It has become a disitributor for HP PCs in Karnataka and HP display products. Compuage Infocom also signed up with other brands like Liteon optical products and Toshiba flash products. The company’s terretories got enhanced in the Microsoft hardware products. Compuage Infocom also increased its territories in the Samsung smartphones and tablet businesses. Being small is seen as an advantage by Compuage Infocom, as it is very likely to grow more than the IT industry’s growth rate. Despite the economic slowdown, Compuage continues to strengthen its team, infrastructure, systems and process and be better prepared for the years ahead. To stregnthen ties with partners, Compuage Infocom introduced its monsoon incentive scheme Rain Gain to reward them based on their billing.
HIGHLIGHTS
•• Asus Technology appointed Compuage as an Authorized Service provider for various products. •• ADATA tied up with Compuage for its DRAM business across India.
Source: DQ estimates revenue (`crore)
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August 15, 2013
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81
THE DQ 50
CMC MD & CEO: R Ramanan
www.cmcltd.com
Aggressive Moves
C
45 2012-13
1,941 30.97%
2011-12
1,482
MC has shown positive growth with 31% increase in FY13. During the year, it implemented a ‘Pit to Port’ solution, offering a mining analytics suite, for mining companies. The company also deployed a state-of-the-art solution for Public Transit (Bus) Arrival Time Prediction for a World Bank funded project and the solution is based on a fully designed and developed telematics solution called ‘Nirdeshak’. CMC has embarked on a unique job-enabling business model for offering training in skill enhancement and certification. To this end, it has tied up with a renowned vocational training service provider from New Zealand to offer such training from the current financial year. To become top 20 SE&I company, CMC 3.0 strategy has been formulated. The strategy is based on an outside-in approach to customers, markets, building strong long term relationships and continuously moving up the value chain with customers.
HIGHLIGHTS
•• Appointed Ashok Sinha, former CMD, BPCL, and Prof M S Ananth, Ex-director, IIT
Madras as its independent directors Source: DQ estimates revenue (`crore)
Core Education Global CEO and Chairman: Sanjeev Mansotra
www.core-edutech.com
Riding High
T
46 2012-13
he company’s success story continued in FY13 as well. It received orders for ICT implementation in West Bengal worth `30 crore and an order worth `7.47 crore from the Department of Social Justice, Maharashtra for providing vocational training to 15,640 students from 2012 to 2014. The West Bengal Electronics Industry Development Corporation (WBEIDC / WEBEL), Kolkata has also awarded the company an order for operation and management of skill development academy with an expected revenue of `3.50 crore, and from the State Urban Development Agency (SUDA), Raipur, Chhattisgarh to impart training to 14,000 unemployed urban poor youths in 25 districts in seven different courses with an expected revenue of `9.78 crore. It also bagged an order worth `157 crore from the Himachal Pradesh government for providing computer-aided learning solutions in 1,471 schools across 12 districts of the state.
1,907 16.42% HIGHLIGHTS
2011-12
1,638
•• Appointed Harihar lyer as independent director •• Signed an agreement with the Himachal Pradesh government for implementing next-
generation solutions for teaching and learning Source: DQ estimates revenue (`crore)
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THE DQ 50
Canon India CEO: Kazutada Kobayashi
www.canon.co.in
Aggressive Moves
I
n FY13, Canon India grew by 13% with revenues growing from `1,636 crore to `1,850 crore. It signicantly deepened its customer base with wins like Ranbaxy, Maruti Suzuki, Yes Bank, and legal firm Anand. Canon also enhanced its managed document services business which has about 86 clients. Out of the `250 crore market for managed document services, Canon aims to clinch about `100 crore business. The company also strengthened its camera business with 40 models in its kitty and intends to capture 45% marketshare in the DSLR category and 25 % in the digital compact camera segment in 2013. However, Canon decided to do away with its entry-level compact cameras in favor of more advanced models because the company is facing a stiff challenge from the rise of smartphones, most of which are packed with high-pixel cameras. It had an impact on the sales as well. Plus it reduced the prices of some of its cameras to catch on the race.
47 2012-13
1,896 15.89%
2011-12
1,636
HIGHLIGHTS
•• Expanded its consumer and office imaging service facilities in Rajasthan •• Unveiled three new in-studio printers
Source: DQ estimates revenue (`crore)
Infotech Enterprises CMD: BVR Mohan Reddy
www.infotech-enterprise.com
Impressive Gains
A
nother good year and the healthy financials sums it all. In FY13, revenue and net profit grew by 21% YoY and 43%, respectively. The company’s other achievement over FY13 relates to its significant improvement in Free Cash Flow (FCF)—FCF generated was `112 crore vs `51 crore last year and it is the highest ever. Employee gross addition for the year was 3,092—highest ever. Infotech also added 64 customers during the year, 34 in engineering and 30 in UT&C—which crossed milestone of $100 mn revenue in FY13. Utilities and Telecom BU posted YoY growth of 32.1% in INR terms and 16.8% in US Dollar terms. Meanwhile the Content BU for the full year achieved 26.3% YoY growth in INR terms. Infotech also opened a new SEZ facility inaugurated at Kakinada.
48 2012-13
1,873
2011-12
1,553
21 %
HIGHLIGHTS
•• Recognized as ‘Supplier of the Year 2012’ in the International category by The Boeing Company •• Q4 was good with significant customer wins
Source: DQ estimates revenue (`crore)
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83
THE DQ 50
EMC India President, EMC India & Saarc: Rajesh Janey
www.india.emc.com
Big Wins
E
MC India’s revenue is estimated to be Rs 1,847 crore, including Rs 891 crore from the EMC Center of Excellence, this fiscal. According to the company, 2013 was marked the year of transformation with the biggest ever quarter for EMC India. For the Isilon and BRS segments, the fourth quarter was the best ever. The company recorded a mid-market growth of 20% YoY, while enterprise growth was at 31% YoY, comprising BFSI’s 210% growth and government’s 70% growth. It bagged the biggest order from UID and another big deals from Green Plum. Among customers, BFSI led the charge with 34%, manufacturing contributed 14%, and government 19%. The company hosted a series of successful events which included nearly 4,500 attendees and over 2,000 attendees at channel led events.
49 2012-13
1,847
2011-12
1,766
4.59%
HIGHLIGHTS
•• The company’s key focus areas for 2013 are cloud, big data, trust, flash, software defined
storage, and cloud storage Source: DQ estimates revenue (`crore)
Rashi Peripherals CEO: Suresh Pansari
www.rptechindia.com
Right Moves
D
espite various market challenges, Rashi managed a good year. The growth was across—including components for DIY PC, notebooks, networking, and smartphones. Besides channel, retails, and LFR, Rashi in FY13 also focused on enterprise business and non-metro business grew two times faster than metro. Meanwhile the company started a new corporate branding to promote the company as a brand to the customers as well as the vendors. Over the year, the company commissioned a survey with GFK to gauge market perception. In the survey, Rashi emerged as a strong relationship oriented organization with high scores on channel friendliness and partner involvement and in partners view it is perceived one among the top 3 distributors in India.
50 2012-13
1,792
2011-12
1,502
19%
HIGHLIGHTS
•• Best new distributor award by Schneider •• Corporate office moved to a 20,000 sqft new office in Mumbai
Source: DQ estimates revenue (`crore)
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The DQ 100 RANK
COMPANY
RANK
COMPANY
51
TPV Technologies
76
Intex Technologies
52
Iris Computers
77
AGC
53
Dimension Data
78
Trimax IT Infrastructure and Services
54
Neoteric Informatique
79
Xerox India
55
Ybrant Digital
80
Geometric
56
Symantec India
81
ITC Infotech India
57
Vakrangee
82
Network Appliance India
58
Prithvi Solutions
83
Synechron Technologies
59
Moser Baer India
84
NIIT Ltd
60
Asus India
85
NCR India
61
Apple India
86
Mastek
62
Supertron Electronics
87
SFO Technologies
63
Infinite Computer Systems
88
Sify
64
Birlasoft
89
CA Technologies India
65
SunGard India
90
Geodesic Information Systems
66
3i Infotech
91
Take Solutions
67
Sonata Software
92
Adobe Systems India
68
Huawei India
93
Diebold India
69
Persistent Systems
94
LG India
70
Seagate India
95
Onmobile
71
Quest Global
96
Juniper Networks
72
CMS Infosystems
97
Ricoh India
73
TE Connectivity
98
Fortune Marketing
74
Sapient India
99
Omnitech Infosolutions
75
Spanco
100
Financial Technologies India
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85
THE DQ 100
Director: Seema Bhatnagar www.tpv-tech.com
TPV Technologies
In FY13, the company grew by almost 20% as the revenue increased from `1,440 crore to `1,725 crore. Though the company strengthened product portfolio but the major revenue contributor was distribution network. In addition, TPV Technology has turned its India operations into a wholly owned subsidiary—TPV Technology India. This will be followed by investment of around `0.2 bn in the Indian operations. Looking at growth avenues, the company plans to set up a manufacturing plant in India.
51
2012-13
1,725 19.79%
2011-12
1,440
HIGHLIGHTS
•• Turned its India operations into a wholly owned subsidiary •• Plans to set up a factory in India
Source: DQ estimates revenue (`crore)
Chairman: Sanjiv Krishen www.iriscomputers.net
Iris Computers
Iris computer secured a healthy 36% growth in FY13. The company bagged a large order from Himachal Pradesh government worth `30 crore to supply 3,000 units of K-yan, a computer cum projection system, along with smart boards. They have also won `25 crore business order from the Education Department, Government of Goa. Under the Cyberage Scheme run by Goa Government, the education department distributed 15,900 laptops to the higher secondary school students.
52
2012-13
1,724 35.86%
2011-12
1,269
HIGHLIGHTS
•• Defenx appointed Iris Computers to distribute its entire range of security products •• BPE appointed Iris Computers as its national distributor
Source: DQ estimates revenue (`crore)
CEO, India: Kiran Bhagwanani www.dimensiondata.com
Dimension Data
Dimension Data signed contracts with three government organizations including Employees Provident Fund Organization (EPFO), Indian Oil Corporation (IOCL), and Punjab Treasury. BSNL and Dimension Data jointly launched six internet data centers. They have signed 15 clients for the cloud services launched in May. It also launched the next generation of its managed services for videoconferencing. Globally, Dimension Data aims to double its sales over the next five years to $12 bn.
53
2012-13
1709 15.01%
2011-12
1486
HIGHLIGHTS
•• Dimension Data won 28 awards at Cisco Partner Summit 2013 •• It was recognised as 2012 Microsoft country partner of the year for India
Neoteric Infomatique
Source: DQ estimates revenue (`crore)
CEO: Paras H Shah www.neoteric.co.in
Neoteric upped its stature significantly in FY13 and it’s quite an eventful year. The company also leveraged its partnerships with leading vendors. One of the few distributors with a strong vertical orientation as well—bagged an award for its ‘outstanding performance in education vertical’ in NEC Asia Pacific Business Partner Conference 2012. Also announced the integration of its Converged Technology Solutions (CTS) Services arm into F1 Info Solutions and Services.
54
2012-13
1,624
2011-12
1,400
16%
HIGHLIGHTS
•• Secures the ‘highest sales growth rate for the last 5 years APAC region at the 9th Asia
Source: DQ estimates revenue (`crore)
Pacific distributors’ meet 86
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THE DQ 100
Ybrant Digital
Chairman & CEO: Suresh Reddy www.ybrantdigital.com
With approval of the High Court of AP, the name of the company has been changed from ‘LGS Global Limited’ to ‘Ybrant Digital Limited’. The company owns premium brands like Lycos, Gamesville, Tripod, and Angelfire which generates over 1.5 bn searches, 34 bn impressions per month. Some of its clients include ICICI Bank, P&G, Vodafone, Qatar Airways, Star India, and Tata Motors.
55
2012-13
1,601
2011-12
1,263
27%
HIGHLIGHTS
•• Commencing work with MindAd facilitating optimal positioning of ads for its clients on
Source: DQ estimates revenue (`crore)
Google search result MD: Anand Naik www.symantec.com
Symantec India
Symantec grew impressively—thanks to the ever growing threat landscape and growing opportunities in cloud and BYOD. Verticals that saw good traction were manufacturing, automotive, IT/ITEs, and insurance among others. Aggressive focus was on areas like storage, cloud, and data recovery. Symantec also tried to improve its connection with channel partners and engaged with them more proactively over the year. The company intends to double its growth in India over the next three to four years.
56
2012-13
1,578
2011-12
1,218
29%
HIGHLIGHTS
•• Topped the DQ Customer Satisfaction Audit (CSA) with #1 rank for security •• Introduced integrated backup and de-duplication appliances in India
Vakrangee Software
Source: DQ estimates revenue (`crore)
Chairman: Dinesh Nandwana www.vakrangeesoftwares.com
FY13 may have seen the topline growth for the company by 15%, but it has also been fraught with issues relating government payments. For a number of e-Governance projects it bagged, it was unable to pay salaries to its employees for a significant time as the government took a lot of time to release money. However, it bagged numerous e-Governance projects in Rajasthan and Maharastra. It bagged a CSC project in Rajasthan worth `750 crore.
57
2012-13
1,556 14.58%
2011-12
1,358
HIGHLIGHTS
•• Struggled to maintain bottomline because of the cashflow issues in government projects •• Bagged new e-Gov project in Rajasthan and Maharastra
Prithvi Solutions
Source: DQ estimates revenue (`crore)
MD: Vuppalapati Satish Kumar www.prithvisolutions.com
After 3 consecutive years of top line de-growth, Prithvi manages to post a double digit positive growth during FY13. Last two years can be termed as a period of regrouping for the company which did face a range of business challenges. As part of its rebound strategy, the company exited from low margin businesses and concentrated on high growth verticals. While telecom and BFSI are the two major verticals, it also upped its ante in other verticals like healthcare and retail.
58
2012-13
1,472
2011-12
1,230
20%
HIGHLIGHTS
•• Focus on high margin verticals •• Need to sustain the growth momentum |
A CyberMedia Publication
Source: DQ estimates revenue (`crore)
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87
THE DQ 100
Chairman: Deepak Puri www.moserbaer.com
Moser Baer India
For the last few years, Moser Baer is struggling to identify new revenue streams and thus, has decreased its focus on the optical disk and IT business. The company is reaping its past prestige with revenues at `1,436 crore in FY13. However, once in a while it tries to strengthen its external storage segment with pygmy launches. Last year, the company launched flash memory thumb drives/pen drives protected with fingerprint biometric. The private data on the flash drive can only be accessed by using users’ fingerprint.
2012-13
59 1,436
HIGHLIGHTS
•• Focusing more on solar business •• Launched biometric pendrive
Source: DQ estimates revenue (`crore)
Regional Director – India, SA & ME: Levis Su www.in.asus.com
Asus India
Despite growth, the market Asus competes is an extremely competitive one. Moreover the components business of major distributors has taken a hit during FY13, making it much more grim for the industry. Asus per se, its components business clocked around `400 crore and the rest had come from the system business. To up its numbers on component and its other products, Asus appointed Redington and Ingram as its ND. The company also worked on taking its retail outlets to tier-2 cities.
60
2012-13
1,430 73.11%
2011-12
1,100
HIGHLIGHTS
•• Launched world’s first AMD based mother board to feature PCI Express 3.0 •• Promotes Peter Chang as country manager for India
Source: DQ estimates revenue (`crore)
CEO: Manish Jha www.apple.com
Apple India
Apple continues to steer forward in India, seeing a phenomenal growth of 73% in FY13. Its revenues rose from `822 crore to `1,423 crore. The company expanded its reach through its iStore network in many cities. With `823 crore coming alone from iPad sales in India, Apple is the #2 tablet player in the Indian market after Samsung. The company also intends to launch a number of low-cost products in the market.
2012-13 2011-12
61 1,423 73.11% 822
HIGHLIGHTS
•• Expanded its network of iStores in the country •• Became #2 player in the tablet market in India
Supertron Electronics
Source: DQ estimates revenue (`crore)
CEO: Vishnu Kumar Bhandari www.supertronindia.com
Supertron Electronics maintained its stability in the distribution circle. The topline shot upto `1,408 crore from `1,189 crore in FY12. The new tie-ups with IT hardware majors such as Dell and Toshiba contributed to its revenues. It remained a strong player with Dell accounting for 35% of its total revenue. Also, it took up LG distribution for its DVD-RW products. Seagate remained the third-most important brand for it.
62
2012-13
1,408 18.42%
2011-12
1,189
HIGHLIGHTS
•• Dell contributed 35% of its revenues •• Increased focus on its pan-India presence rather than regional 88
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Source: DQ estimates revenue (`crore)
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THE DQ 100
MD & CEO : Upinder Zutshi www.infinite.com
Infinite Computer Systems
Infinite’s strategy during FY12 was to move towards mobility. Despite the averageto-bad economic conditions, the revenue has increased by 30% in India. 90% of this business came from its top 10 clients. It gained well from the revenue-sharing model that the entire industry is gradually opening up to. Divided the company into three independent units—IT services, R&D, and products—for more profitablity with a focused and dedicated leadership team for these units.
63
2012-13
1,392
2011-12
1,056
32%
HIGHLIGHTS
•• Announced the launch of RCS—allows network operators to offer TELCO-grade
Source: DQ estimates revenue (`crore)
enhanced messaging services to mobile subscribers CEO : Preeti Das www.birlasoft.com
Birlasoft
Birlasoft considers that its ability to offer both technology and business solutions and its customer-centric strategy as its key USP. This customer orientation helped it deepening its client mandates across verticals over FY13. A testimony to that came when it got ranked 72 amongst 2012 Global Outsourcing 100 service providers in the global outsourcing 100 list published by IAOP (International Association of Outsourcing Professionals). The IAOP in its evaluation factored 4 parameters like—size and growth, customer references, organizational competencies, and management capabilities.
64
2012-13
1,351
2011-12
1,277
6%
HIGHLIGHTS
•• IAOP’s recognizes Birlasoft’s key strength as ‘customer references’ •• Good traction across verticals—BFSI, insurance, and emerging ones
Source: DQ estimates revenue (`crore)
MD : Atul Sareen www.sungard.com
SunGard India
This company provides mission-critical software and technology services to institutions in virtually every segment of the financial service industry. SunGard had a very flat growth of just 2% in FY13. Over the year the company focused on areas like risk managemnt and its solutions for risk management cover, pre and post-trade risk management, integrated, enterprise-wide market, liquidity, credit and operational risk management, asset liability management, and trade surveillance.
65
2012-13
1,321
2011-12
1,301
2%
HIGHLIGHTS
•• A new global research undertaken by SunGard in 2013 has found that banks continue
Source: DQ estimates revenue (`crore)
to take a short-term view when it comes to risk management priorities MD & CEO: Madhivanan Balakrishnan www.3i-infotech.com
3i Infotech
It’s been tough going for this company that’s mired in debt problems which resulted in the massive hit in both topline and bottomline. Industry sources estimate 3i’s debt at around `2,000 crore. While for FY13, revenues went south but the silver lining in Q1 FY14 is that the company’s net losses dropped almost by `83 crore. Beyond the disturbing numbers, business wise the company successfully re-launched its Orion ERP solution with enhanced features in India at the Connect Expo 2013.
66
2012-13
1,311
2011-12
1,681
-22%
HIGHLIGHTS
•• Orion ERP was re-launched in India •• Launched mobility solutions—Premia mobile insurance and Kastle mobile banking 90
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Source: DQ estimates revenue (`crore)
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THE DQ 100
MD & CEO: P Srikar Reddy www.sonata-software.com
Sonata Software
The main highlight over FY13 being its exit from a JV with TUI InfoTec after eight years. In September 2012, Sonata Software sold its 50.1% shares back to Germanybased tourism and travel major TUI Travel PLC. Meanwhile, the company added two new verticals to its portfolio—retail and consumer packaged goods. It also invested in new technical capabilities like social, mobile, cloud, and big data.
67
2012-13
1,311
2011-12
1,069
22.64%
HIGHLIGHTS
•• The company entered a global alliance with TIBCO Software to sell and implement
Source: DQ estimates revenue (`crore)
tibbr, a leading enterprise social networking platform CEO: Cai Liquin www.huawei.com
Huawei India
Over the year, Huawei unveiled SoftCOM—a cloud-based systematic future network architecture—that leverages the power of SDN to help operators address challenges brought about by the accelerated changes in the industry landscape. Meanwhile, Idea cellular chose Huawei for deployment of 100G DWDM network in optical backbone network to enhance capacity and robustness.
68
2012-13
1,298
2011-12
991
31%
HIGHLIGHTS
•• Unveiled enterprise BYOD solution at CeBIT 2013 •• Released the industry’s first fiber to the door (FTTD) solution
Source: DQ estimates revenue (`crore)
CEO: Anand Deshpande www.persistentsys.com
Persistent Systems
Persistent Systems has shown consistent growth YoY and maintained its range on higher side in FY13. The overall contribution of IP this year was 17.2%, up 124% as compared to last year. Overall, the product and services business grew by nearly 3%. The revenue from Novaquest was about $1.8 mn. With the acquisition of Doyenz, the company plans to look at virtualisation and backup NDR continued execution of key strategic initiatives in platform solutions and IP led business.
69
2012-13
1,294
2011-12
1,000
29.4%
HIGHLIGHTS
•• Platform solutions and IP-led business saw good traction •• Entered into a strategic partnership with SysCare Technology for technology services
Source: DQ estimates revenue (`crore)
Country Manager: Rajesh Khurana www.seagate.com
Seagate India
Seagate saw good growth coming in from enterprise and consumer markets in India. Moreover, the need for storage only got augumented wth big data and cloud demands prompting enterprises to increase their storage spend. The PC market also panned out well for Seagate over FY13. In a signficant achievement at the end of the fiscal, Seagate announced that it is the first hard disk drive manufacturer to ship 2 bn hard disk drives globally.
70
2012-13
1,280
2011-12
1,200
7%
HIGHLIGHTS
•• Acquires controlling stake in LaCie—a storage device maker for
Source: DQ estimates revenue (`crore)
PC, Apple, and Linux |
A CyberMedia Publication
www.dqindia.com
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91
THE DQ 100
QuEST Global Services
Chairman & Co-founder: Aravind Melligeri www.quest-global.com
Last year, QuEST appointed Ajit Prabhu as chairman of the company and its subsidiaries. Under Prabhu’s leadership, QuEST has steered past the industry estimates in terms of growth, at 55%. Nearly 70% of the company’s revenue comes from aerospace and defense, 7% from oil and gas, 18% from power generation vertical, and 4% from industrial. Following its acquisitions in the US, UK, Spain, and Australia in the previous years, QuEST has kept a keen focus on these markets.
71
2012-13
1,248
2011-12
808
54%
HIGHLIGHTS
•• It announced a new entity QuEST Global Defence Engineering Services and roped in
Source: DQ estimates revenue (`crore)
former HAL chairman Ashok Baweja to spearhead it CEO: Rajiv Kaul www.cms.com
CMS Infosystems
A 3% top line might look humble. But looking at the market conditions, CMS did pretty well and its focused approach on the domestic market is working well. With a good business pipeline, the company intends to achieve a turnover of `2,000 crore by 2016. CMS’ sweet spot is ATM outsourcing—it provides direct services to about 32,000 ATM’s in the country in 1,200 locations. CMS provided a range of innovative solutions in the realm of ATM/cash management space leading to larger business traction.
72
2012-13
1,243 3.00%
2011-12
1,203
HIGHLIGHTS
•• Securitrans India acquisition in 2011 makes for growing its marketshare in cash
Source: DQ estimates revenue (`crore)
management segment that went up to 60% from 27% two years ago President India: V. Raja www.te.com
TE Connectivity
TE Connectivity gets nearly 1/4th of its revenue from the Indian market. India is one of the fastest growing markets for the company with a 14.5% increase in the revenue from FY12. TE’s product breadth spans power, data, and signal in automotive and aerospace to broadband, comunication, consumer, energy and industrial application. TE’s marketdefining technology and engineering expertise is setting the pace for future connectivity. They introduced Quareo, a connection point identification technology to India.
2012-13 2011-12
73 1,100 14.5% 960
HIGHLIGHTS
•• Launched 30 new antena products •• Announced new developments in tubing and harnessing products
Source: DQ estimates revenue (`crore)
MD: Rajdeep Endow www.sapient.com
Sapient India
Sapient posted solid growth in FY13 despite the challenging economic environment. The company has also undertaken a series of acquisitions wherein it acquired Iota Partners and (m)PHASIZE. On the other hand, SapientNitro acquired Second Story and 81% of iThink, an independent digital agency in Brazil. The move into Brazil marked the expansion of SapientNitro into the Latin American market, strategically rounding out the agency’s global footprint to include all of the BRIC countries.
2012-13 2011-12
74 1,095 20.07% 912
HIGHLIGHTS
•• Adobe Systems and SapientNitro announced an expansion of their
Source: DQ estimates revenue (`crore)
global partnership 92
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August 15, 2013
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THE DQ 100
CMD: Kapil Puri www.spancotele.com
Spanco
Spanco saw a revenue drop by 40%. According to media reports, the main reason seems to be the insufficient working capital and an inability to raise money from banks that led to project delays. This froze payments from clients, pushing the company into a circle of debt and default. Spanco works primarily in government, power distribution, and telecommunications sector. Winning the eIndia award last year for the mobile banking platform Spanco created for SBI was an uplifting moment for the company.
75
2012-13
1,085 -41.95%
2011-12
1,869
HIGHLIGHTS
•• Rajiv Chhabra joined as an independent director and resigned •• Laxmi Kothari, company secretary and compliance officer also resigned the same year
Source: DQ estimates revenue (`crore)
CEO: Narendra Bansal www.intexmobile.in
Intex Technologies
One of the fastest growing IT accessories, mobile phones and electronic products company, Intex over the last few years has successfully morphed into a vendor of consumer electronics, mobility, software, and products. In FY13 its revenues crossed `1,000 crore. Over the year Intex made impressive strides on its smartphone business and launched new models and especially the launch of ‘Matrabasha’, an app which enabled smartphone users to use their gadgets in their own mother tongue, was notable.
76
2012-13
1,069
2011-12
779
37%
HIGHLIGHTS
•• Launches 29 inch LED television for the Indian market •• Deepens its presence in the high growth smartphone category
Source: DQ estimates revenue (`crore)
MD and CEO: SK Jha www.agcnetworks.com
AGC Networks
This company delivers technology based solutions to clients in verticals like BFSI, IT/ ITeS, manufacturing, hospitality, and healthcare. Despite the tough market conditions, it had many wins over FY13—a Cheque Truncation System (CTS) project spanning a consortium of 20 PSU banks, providing data center and DR infrastructure solutions to a government technology development center, a contract for providing networking backbone to a METRO link in one of the metro cities of India and many others wins.
2012-13 2011-12
77 1,061 6.00% 998
HIGHLIGHTS
•• Deployed a ‘hosted contact center’ solution for Africa’s largest integrated
Source: DQ estimates revenue (`crore)
telecommunications company CMD: Surya Prakash Madrecha www.trimax.in
Trimax IT Infrastructure and Services
With its strong performance, Trimax IT Infrastructure & Services was able to sustain its position in DQ Top 20 rankings. During FY13, the company serviced approximately 400 customers directly, including major government entities, PSU, and private enterprise. With its partnerships with BSNL, they provide the ‘last-mile’ connectivity between the exchange and the end-user office. The company operates a tier-3 compliant data centre in Bengaluru and owns and operates a tier-3 compliant data center in Airoli.
2012-13 2011-12
78 1,033 31.59% 785
HIGHLIGHTS
•• As of May 31, 2013, the company has 2,281 employees, including
Source: DQ estimates revenue (`crore)
183 original equipment manufacturer (OEM) certified engineers |
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93
THE DQ 100
MD: Rajat Jain www.xerox.com/india
Xerox India
Rajat Jain, the MD and his team were engaged in re-establishing Xerox as a diversified IT solutions company. Xerox’s global acquisition of ACS has not paid in India. Most of the revenue in India continues to come from the traditional printer business. At present, Xerox’s 40% revenue comes from SMBs, 35% from enterprise and corporate space,and rest 25% from the government.
2012-13 2011-12
79 1,020 10.87% 920
HIGHLIGHTS
•• Introduced a series of Multifunction Printers (MFPs) enabled with the new Xerox
Source: DQ estimates revenue (`crore)
ConnectKey controller CEO: Manu Parpia www.geometricglobal.com
Geometric
It is one of the very few companies operating in the combined space of engineering services and engineering IT across the product realization value chain. During FY13 the market for engineering services and engineering IT remained positive. However, it faced the challenge in one of its large customers who had to contend with difficult market conditions. While this contributed to a setback which the company termed it as temporary. The company is focused on building sustainable scalable enterprise.
80
2012-13
1,020
2011-12
808
26%
HIGHLIGHTS
•• FY13 revenues cross `1,000 crore mark •• CAD development and customization project for a leading European car manufacturer
Source: DQ estimates revenue (`crore)
MD: B Sumant www.itcinfotech.com
ITC Infotech India
The fiscal started on a good note with company collaborating with Oracle to develop the Oracle Airline Data Model. Part of Oracle’s Passenger Data Management solution, the Oracle Airline Data Model is a comprehensive end-to-end data warehousing, business intelligence, and analytics solution for the airline industry. In Q3 FY13, the company successfully completed the implementation of PLM for Combat Vehicles Research and Development Establishment (CVRDE).
81
2012-13
1,009
2011-12
827
22%
HIGHLIGHTS
•• Placed one among world’s Top 100 outsourcing providers •• The company became the 1st PTC authorized training partner in India
Source: DQ estimates revenue (`crore)
President: Anil Valluri www.netapp.com/in
NetApp India
NetApp maintained its growth momentum with 11% marketshare in FY13. Growth in joint Cisco and NetApp reference cloud and virtualization IT infrastructure solution FlexPod customer base grew by almost 150%. In India and Saarc region, out of 38 acquired customers, 34 of them are in India span across nine business verticals including ITeS, manufacturing, BFSI and others—of these 24 are in cloud/virtualization workloads.
82
2012-13
995
2011-12
905
10.00%
HIGHLIGHTS
•• Flexpod has over 1,600 customers in more than 35 countries •• Growing traction in flash storage segment 94
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www.dqindia.com
Source: DQ estimates revenue (`crore)
A CyberMedia Publication
|
THE DQ 100
CEO: Faisal Husain www.synechron.com
Synechron Technologies
Synechron still stays as one of the fastest growing companies in the industry. Over the year, Synechron acquired Double Effect—a 10-year-old firm founded in Amsterdam, which has now expanded to Singapore and Frankfurt. Double Effect is in the business of providing management and business consulting to banks. With this acquisition, Synechron secures a gateway into Europe, as well as a new service line of high-end management consulting, focused on large banks and financial institutions.
83
2012-13
983
2011-12
738
33.00%
HIGHLIGHTS
•• Aggressive inorganic focus aimed at geo expansion •• Recognized with the ACORD award for ‘Synechron Insurance Mobile Solution’ (SIMS)
Source: DQ estimates revenue (`crore)
CEO: Vijay Thadani www.niit.com
NIIT Ltd
NIIT slipped from #61 in FY12 to #84. In FY12, the revenue of `1,260 crore reflects the sale of Element K, whereas its organic revenue from training for the year stands at `993.5 crore. This year, with revenue of `961 crore, NIIT witnessed degrowth. The squeeze in hiring in the IT-BPM industry and companies deferring the joining dates of thousands of fresh graduates have impacted NIIT’s revenue. The individual learning solutions market decreased by 4% while the corporate learning solutions grew at 19%.
84
2012-13
961
2011-12
1,260
-23.7%
HIGHLIGHTS
•• Acquired five new customers in corporate training •• Offered around 100 courses under the cloud campus
Source: DQ estimates revenue (`crore)
MD: Navroze Dastur www.ncr.com
NCR India
With allmost 50% share in the ATM market in India, NCR’s USP in India has been its highly customized ATMs. For instance, over the year, the company had deployed talking ATM’s for Union Bank aimed at visually challenged people. Union Bank has announced its intent to deploy 50 such talking ATMs from NCR. These talking ATMs are also put up at passport offices in India. The company also launched its innovative energy efficient NCR SelfServ 22 e-machines which had smaller form factor.
85
2012-13
918
2011-12
850
8%
HIGHLIGHTS
•• SelfServ 32 form NCR is billed as country’s first ‘no-envelope’ multi-function
Source: DQ estimates revenue (`crore)
intelligent deposit ATM
Mastek
CEO: Sudhakar Ram www.mastek.com
FY13 was a turnaround year for the company. It took up some strategic initiatives like strong governance on reviewing business unit performance, alignment of the organization structure to focus on improving sales and operational efficiency, cost and other rationalization measures. It also continued its investment in the insurance business in North America. The company recorded growth in revenues QoQ over the last 6 quarters and also reported net profits over the last 5 quarters ended March 2013.
86
2012-13
894
2011-12
664
35%
HIGHLIGHTS
•• Big traction in insurance vertical •• Domestic business saw key government wins |
A CyberMedia Publication
Source: DQ estimates revenue (`crore)
www.dqindia.com
August 15, 2013
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95
THE DQ 100
VP and MD: N Jahangir www.nestgroup.net
SFO Technologies
SFO technology, a NEST group company, is a diversified business conglomeration operating in areas of manufacturing services, products and technologies, engineering and software, and system integration. The group offers turnkey solutions, product development and maintenance, R&D support, and customer services spanning diverse domains such as embedded system development, design and product development, industrial process and automation, education services, and other IT services as well.
87
2012-13
882
2011-12
840
5%
HIGHLIGHTS
•• Strong presence in futuristic computer & communication technology
Source: DQ estimates revenue (`crore)
areas like networking, fiber optics, etc Chairman: Raju Vegesna www.sifycorp.com
Sify
In FY13, Sify’s adherence and its strict supervision of its expenditure has contributed to steadily improving financial results. On the enterprise business, its strategy on network services revolved around increasing market coverage through network expansion. Revenue from voice business has grown 27% over the previous year. In IT services, it added a world class tier-3 data center facility at Noida. In software services, a strong focus on collections has substantially improved the receivables in H2 FY13.
88
2012-13
857
2011-12
774
11%
HIGHLIGHTS
•• Overall internet business grew by 50% over last year •• The eLearning business acquired over 10 new accounts for talent management
Source: DQ estimates revenue (`crore)
VP: Sunil Manglore www.ca.com
CA Technologies India
In FY13, CA continued its focus on key verticals such as government and defense. But since the government was slow last year, CA saw its growth going south to 5% that saw its revenues going up from `814 crore to `855 crore in FY13. It developed CA Infrastructure Management suite to retain more customers who are looking to upgrade and manage their IT Infrastructure.
89
2012-13
855
2011-12
814
5.04%
HIGHLIGHTS
•• Established the Centre of Excellence (CoE), housed in Chitkara University
Source: DQ estimates revenue (`crore)
in Punjab and Himachal Pradesh
Geodesic Information Systems
Chairman & Co-founder: Pankaj Kumar www.geodesic.com
Geodesic secured good growth during FY13. Its enterprise customer base for core business has grown and its mobile products now reach out to over 20 mn users across 100 countries. It has undergone various organizational changes during the year. Due to the re-organization, the company posted lower earnings in financial products, content management solutions, and web services, while improving its performance in new-focus businesses of communication.
90
2012-13
843
2011-12
717
18%
HIGHLIGHTS
•• Focused on re-engineering and corporate turnaround effort by shuttering some
Source: DQ estimates revenue (`crore)
verticals and increasing focus on others as part of its Geodesic 2.0 vision 96
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www.dqindia.com
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THE DQ 100
TAKE Solutions
President & CEO: Ram Yaleswarapu www.takesolutions.com
This Chennai based specialty solution company saw a 7.1% decline in its net profit as compared to FY12. Company sources attribute the decline to the challenging business environment in H2 FY13. The near term outlook also remains grim as the company does not see the environment improving. The company is realigning its operations to focus on 360 degree coverage of life sciences and very niche offerings.
91
2012-13
832
2011-12
719
18%
HIGHLIGHTS
Source: DQ estimates revenue (`crore) •• Recognized as a leader in IDC’s drug safety services MarketScape •• Over the year inducted senior professionals to drive the individual verticals of life sciences
MD: Umang Bedi www.adobeindia.com
Adobe Systems India
Adobe’s go-to-market strategy in India saw a significant shift, helping it to grow in FY13. Its revenues for FY13 stood at `750 crore as against `645 crore in the previous year. The company focused on direct relationship with customers as well as channel network. But it drew ire of partners with the launch of Adobe creative cloud allowing users to directly use the creative suite on subscription basis. It also implemented Adobe Acrobat under E-Gram project in Gujarat in more than 18,000 gram panchayats.
92
2012-13
750
2011-12
645
16.28%
HIGHLIGHTS
•• It launched Adobe Partner Connection, a partner program •• Launched Adobe creative cloud in India
Source: DQ estimates revenue (`crore)
CEO: Naresh Hosangady www.dieboldindia.com
Diebold India
FY13 witnessed the launch of its world’s first smart automated teller machine (ATM)— Diebold 429. This machine is specifically designed to meet the increasing demand for a robust self-service terminal in urban and rural areas of India. Built with a power management system, it automatically switches between three possible power sources (solar panel, alternating current (AC) grid, and internal battery), maximizing terminal uptime, and lowering total cost of ownership.
93
2012-13
742
2011-12
645
15.04%
HIGHLIGHTS
•• Appointed Merz as senior vice president, strategic projects •• Appointed Mattes as president and chief executive officer
Source: DQ estimates revenue (`crore)
MD: Soon Kwon www.in.lge.com
LG India
Rupee depreciation impacted LG’s business in FY13. The monitor business crawled with a marginal increase as revenue came primarily from higher ASP and premium models. It also registered degrowth in its media base storage products by 6%. Overall, component business for LG was flat. But it bets big on the festival season. It increased its channel network to 1,500 sub-distributors and 3,000 system assemblers.
94
2012-13
730
2011-12
765
-4.58%
HIGHLIGHTS
•• To launch hybrid tablet & all-in-one (AIO) to boost revenues for IT division •• Launched IPS panel monitors that contributed 25% to revenues |
A CyberMedia Publication
www.dqindia.com
Source: DQ estimates revenue (`crore)
August 15, 2013
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97
THE DQ 100
Co-founder & CEO: Mouli Raman www.onmobile.com
Onmobile
OnMobile’s India revenues were affected by financial and regulatory pressures in the Indian telecom industry and declined by 19.6%. However, it witnessed stability in the last quarter with a 5.9% QoQ increase. Global revenue increased by 13.7%. OnMobile’s offerings cover almost the entire breadth of MVAS space and it has the largest footprint in emerging markets. It has proven track record of new service innovation over the years and high revenue growth delivered to customers.
95
2012-13
725
2011-12
638
14%
HIGHLIGHTS
•• OnMobile launched the Phase 1 of m-governance services for citizens of Karnataka •• The company was also selected to revamp Movistar Emocion portal by Telefonica
Source: DQ estimates revenue (`crore)
MD (India and SAARC): Ravi Chauhan www.juniper.net
Juniper Networks
To make its footprint in tier-1 and -2 cities, Juniper Network has signed agreements with Avnet, Ingram Micro, and Transition Systems to strengthen its distribution network. Companies like Muthoot Group has deployed Juniper Networks SRX Series Services Gateways and EX Series Ethernet switches at its datacenters whereas Flipkart.com has built its next-generation datacenter running on the Juniper Networks Junos operating system.
96
2012-13
717
2011-12
683
4.98%
HIGHLIGHTS
•• Introduces PTX3000 Packet Transport Router •• Launches JunosV contrail SDN product
Source: DQ estimates revenue (`crore)
MD and CEO: Tetsuya Takano www.ricoh.co.in
Ricoh India
Ricoh continued to perform in the Indian market with impressive growth rate of 46.5%. Its revenues zoomed from `432 crore in FY12 to `633 crore in FY13. Ricoh is one of the fastest growing printing companies in India which poses challenge to traditional printing majors such as HP, Canon, and Epson. The company continued to grow and expand in the country. It added a number of new products to strengthen its portfolio.
97
2012-13
633
2011-12
432
46.5%
HIGHLIGHTS
•• Introduced toner bottling operations at its Gujarat factory •• Present at 24 locations and has over 2,500 dealers
Source: DQ estimates revenue (`crore)
CEO: Manoj Gupta www.fortune-it.com
Fortune Marketing
A good order book saw growing revenues for the company and they increased by 15%. It secured an order for providing surveillance from Bhopal City and New Delhi domestic airport. Wherein Fortune has been considered for storing the data for domestic airport surveillance system and has supplied 32TB of storage to New Delhi domestic airport. In FY13 company also started distribution of Tenda Range of networking products. It also introduced IP surveillance, VDP, etc.
98
2012-13
552
2011-12
480
15%
HIGHLIGHTS
•• Total number of employees in FY13 was 275 as compared to 250 in FY12 •• Focusing more on networking and surveillance market 98
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August 15, 2013
www.dqindia.com
Source: DQ estimates revenue (`crore)
A CyberMedia Publication
|
THE DQ 100
Omnitech Info Solutions
MD: Atul Hemani www.omnitechglobal.com
This year Omnitech was able to book its slot in the top 100 ranking with a total revenue of `539 crore. The company signed its first Next Generation Real Time Gross Settlement (NG-RTGS) implementation contract with Solapur Janata Sahakari bank (SJSB). The contract involves helping the bank to go live on Next Generation RTGS along with a 3-year management services contract. The company continued its focus on government projects, but exercised more fiscal prudence than many other similar companies.
99
2012-13
539
2011-12
504
6.94%
HIGHLIGHTS
•• Focusing on sectors like pharma, government, healthcare, and education
Financial Technologies India
Source: DQ estimates revenue (`crore)
Chairman and group CEO: Jignesh Shah www.ftindia.com
In FY13 the growth rate moved upward by 7% helping the company to secure its position in Top 100. FTIL continues its leadership in the brokerage solutions marketplace with market share in excess of 80%. FTIL promoted entities are market leaders in their respective ventures. MCX, the world’s second largest commodity exchange (by contracts) had 87% market share. Meanwhile, BFX started Islamic products trading in Bahrain.
100
2012-13
535
2011-12
501
6.79%
HIGHLIGHTS
•• IEX started operations •• Bourse Africa announced in Africa
Source: DQ estimates revenue (`crore)
Call for Free Demo
1800 200 2444 ZERO Thinclients from RDP. |
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THINK DIGITAL
Digital Behavior
Share of Asia Pacific Online Population
India’s share in Asia Pacific Grows Second Largest Online Population in the Region Total 604 MM
Total 644 MM
Rest of APAC, 13.9%
Rest of APAC, 13.5%
Southeast Asia, 9.4%
Southeast Asia, 9.6%
Japan, 12.2%
Japan, 11.4%
India, 9.3%
India, 11.5%
China, 55.2%
China, 54.0%
Mar-12
Mar-13
© comScore, Inc.
Proprietary.
7
Internet Audience 15+ accessing Internet from a Home or Work PC
Source: comScore Media Metrix, March 2012 to March 2013 India is the World’s Third Largest Internet Population Overtakes Japan by Adding 17.6 Million Users in the Past Year
Total Unique Visitors (000)
With an extended online universe in excess of 145 million the market is at a tipping point for online businesses
62,617
62,122
52,701
43,021
39,147
28,929
United States
73,640
191,374
China
73,872
348,177
India’s Internet audience grew by 17.6 million users since March 2012, a year-over-year increase of 31%
India
Japan
Russian Federation
Brazil
Germany
France
United Kingdom
Italy
source: comScore Report ‘India Digital Future in Focus- 2013’, August 2013 © comScore, Inc.
Proprietary.
Internet Audience 15+ accessing Internet from a Home or Work PC Source: comScore Media Metrix, March 2012 to March 2013
10
THINK DIGITAL
Percentage of users
Mobiles and tablets preferred choice of access for many Weather, Blogs and Music Increasingly Accessed “on the go”
26%
24%
74%
76%
Blogs
Entertainment Music
60%
66%
40%
33% Weather
Car Rental PC
© comScore, Inc.
Mobile + Tablet Source: comScore Device Essentials July 2013
Proprietary.
Social Networking Captures Large Share of PC Screen Time in India Share of Time Spent on Services (Email, IM) Also Significant
18
Share of Total Minutes Spent Online
100% 90% 80%
35%
43%
70%
29% 45%
61%
60%
11%
50% 40% 30%
News/Information Entertainment Social Networking
25% 20%
All Other Retail
9%
13%
20% 10%
13%
3% 13%
WW
China
Services
33%
9%
16%
38%
23% 9%
0%
India
Russia
15%
Brazil
source: comScore Report ‘India Digital Future in Focus- 2013’, August 2013 © comScore, Inc.
Proprietary.
Internet Audience 15+ accessing Internet from a Home or Work PC Source: comScore Media Metrix, March 2013
20
THINK DIGITAL
Fastest Growing Web Categories in India Blogs Category Showed Phenomenal Growth, Adding 11.6m New Users
Apparel
Total Unique Visitors (000)
Year on Year
7,221
85%
13,390
7,339
Comparison Shopping
52%
11,141
24,278
Blogs
35,906
48%
8,109
Financial Information/Advice
43%
11,571
Mar-12
© comScore, Inc.
Mar-13 Internet Audience 15+ accessing Internet from a Home or Work PC Source: comScore Media Metrix, March 2012 and March 2013
Proprietary.
Top Web Properties - India Unique Visitors (000) Google Sites
167.9
59,662
Yahoo! Sites
217.7
38,909
Microsoft Sites
31,332
Wikimedia Foundation Sites
24,934
Times Internet Limited
23,968
BitTorrent Network
22,640
Network 18
18,549
Ask Network Rediff.com India Ltd
Minutes per Visitor 69,393
16,187 13,897
21
72.1 19.4
11.1 17.5 0.1 25.7 4.0 35.2
source: comScore Report ‘India Digital Future in Focus- 2013’, August 2013 © comScore, Inc.
Proprietary.
Internet Audience 15+ accessing Internet from a Home or Work PC Source: comScore Media Metrix, March 2013
22
THINK DIGITAL
Social Social Networking Continues to Grow in India Facebook Leads the Charge
86% 217 28% Minutes Are Spent on Facebook by an Average User
Indian Web Users Visit a Social Networking Site
Increase in Facebook Visitors in the last 12 months
59,642,000 Users visited Facebook on their PC’s
© comScore, Inc.
Proprietary.
24
Internet Audience 15+ accessing Internet from a Home or Work PC
Source: comScore Media Metrix, March 2013 Business-Focused LinkedIn in #2 Spot Twitter, Orkut, Tumblr and Pinterest among top 7
Minutes per Visitor
Unique Visitors (000) Linkedin TWITTER.COM ZEDGE.NET
9.1
3,884
14.5
2,954
Orkut
2,044
Yahoo! Profile
1,939
TUMBLR.COM
1,855
PINTEREST.COM
18.7
11,127
8.2 1.7 7.9 9.2
1,514
source: comScore Report ‘India Digital Future in Focus- 2013’, August 2013 © comScore, Inc.
Proprietary.
Internet Audience 15+ accessing Internet from a Home or Work PC Source: comScore Media Metrix, March 2013
25
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THINK DIGITAL
Retail Local Retailer Myntra Shows Highest Growth and Leads the Category Highest Per-User Engagement is on Flipkart.com Unique Visitors (000) MYNTRA.COM
Minutes per Visitor
+156%
FLIPKART.COM Jabong.com
13,173
+77%
12,649
+124%
12,425
Amazon Sites
+31%
SNAPDEAL.COM
+10%
HOMESHOP18.COM
+119%
Indiatimes Shopping
+151%
© comScore, Inc.
Proprietary.
6.0 16.2 6.3
11,924
7.6
8,447
7.8
8,109
3.1
6,092
1.9
29
Internet Audience 15+ accessing Internet from a Home or Work PC
Source: comScore Media Metrix, June 2013 Largest Retail Subcategories Include Apparel, Computer and Electronics Sites, and Comparison Shopping
% Reach of Retail Categories 11.0%
7.0%
8.0%
Retail - Movies
Health Care
80%
Computer Hardware
Consumer Electronics
15.0%
16.0%
Comparison Shopping
Computer Software
Apparel
Highest % Growth in 3 months (Retail Category)
26%
Retail - Food
13.0%
21.0%
25%
Tickets
18%
Jewelry/Luxury Fragrances/Cosmetics Goods/Accessories
17%
Health Care
source: comScore Report ‘India Digital Future in Focus- 2013’, August 2013 © comScore, Inc.
Proprietary.
Internet Audience 15+ accessing Internet from a Home or Work PC Source: comScore Media Metrix, June 2013
30
THINK DIGITAL
Entertainment & Online View Facebook,Yahoo! And YouTube Grow Further Metacafe,Times Internet and Vdopia lose Unique Visitors (000)
Year on Year
Google Sites
31,519
VEVO
+100%
8,243
VDOPIA.COM DAILYMOTION.COM
+182%
18,606
Yahoo! Sites
-10%
6,444
-6%
4,275 2,880
Times Internet Limited
2,388
Amazon Sites
2,095
Metacafe
1,511
Vimeo
1,397
© comScore, Inc.
+24%
+11%
55.7%
-34% +23%
Of All Videos Viewed were on Google Sites (YouTube)
-58% +32%
33
Internet Audience 15+ accessing Internet from a Home or Work PC
Proprietary.
Source: comScore Video Metrix, March 2013 Tseries, Sony and UMG Top3 YouTube Partners StarIndia Keeps Users Glued On Longer
Unique Visitors (000)
Minutes per Visitor
tseriesmusic
9,436
SonyBMG
7,249
UMG
4,802
erosentertainment
4,611
shemarooent
4,447
ZEFR
4,094
StarIndia
4,030
saregama
4,019
Fullscreen
3,916
rajshri
3,886
15.3 8.8 7.3 8.0
9.2 7.9 27.6 8.3 6.9 8.9
source: comScore Report ‘India Digital Future in Focus- 2013’, August 2013 © comScore, Inc.
Proprietary.
Internet Audience 15+ accessing Internet from a Home or Work PC Source: comScore Video Metrix, March 2013
34
THINK DIGITAL
News & Information News/Information Market also Underdeveloped vs. BRIC Peers Average of 33.5 Minutes Spent on These Sites Reach of News/Information Category
Worldwide
Average Time Spent on News/Information Category (Minutes) 69.7
76.1%
China
50.4
61.1%
India
33.5
56.8%
Russia
28.8
70.9%
Brazil
60.7
88.4%
© comScore, Inc.
Internet Audience 15+ accessing Internet from a Home or Work PC
Proprietary.
Source: comScore Media Metrix, March 2013 Web Users in India Source News from Local and International Sites The Economic Times has Heaviest Engagement Among Top Ten
Unique Visitors (000)
Minutes per Visitor
Yahoo!-ABC News Network
13,165
The Times of India 6,325
India Today Group
3.5 8.5
5,549
ONEINDIA
6.8
5,043
NDTV
4,245
The Economic Times
4,167
INDIANWEEKLYNEWS.COM
10.3
5,921
HT Media Ltd
IBN Live
14.0
9,721
New York Times Digital
8.5 13.1 19.1 13.4
3,866 3,319
36
1.1
source: comScore Report ‘India Digital Future in Focus- 2013’, August 2013 © comScore, Inc.
Proprietary.
Internet Audience 15+ accessing Internet from a Home or Work PC Source: comScore Media Metrix, March 2013
38
THINK DIGITAL
Indian News Sites Attract Substantial Share of Visitors from Abroad Share of Audience Outside India
Visitors from Inside vs. Outside India The Times of India
10,944
NDTV
5,516
The Economic Times
3,842
ONEINDIA
33%
1,851
27%
1,431
7,607
India Today Group
5,189
0
24%
2,434
18%
1,154
5,000
UV (000) from India
© comScore, Inc.
27%
1,926
3,966
HT Media Ltd
40%
3,656
5,144
IBN Live
40%
7,311
Proprietary.
10,000
15,000
20,000
UV (000) from Outside India
39
Internet Audience 15+ accessing Internet from a Home or Work PC
Source: comScore Media Metrix, March 2013 Blogs Have Seen High Growth in India Over Past Year Engagement Remains Low
Reach of Blogs Category
Worldwide
China
Average Time Spent on Blogs Category (Minutes) 29.5
53%
13.8
28%
India
10.3
49%
Russia
19.8
46%
Brazil
83%
51.5
source: comScore Report ‘India Digital Future in Focus- 2013’, August 2013 © comScore, Inc.
Proprietary.
Internet Audience 15+ accessing Internet from a Home or Work PC Source: comScore Media Metrix, March 2013
40
THINK DIGITAL
Travel Travel Category Gets More Users Time Spent on Travel Sites is Also Higher Than Others Reach of Travel Category
Average Time Spent (Minutes)
Worldwide
25.6
36%
China
15.4
25%
India
26.7
38%
Russia
25.9
30%
Brazil
15.9
37%
© comScore, Inc.
Internet Audience 15+ accessing Internet from a Home or Work PC
Proprietary.
Local Travel Sites Highly Popular Source: comScore Media Metrix, March 2013 Highest Visiting and Per-User Engagement on Indian Rail sites Unique Visitors (000) Y e a r o n Y e a r G r o w t h
+9%
13,675
MakeMyTrip
-49%
Yatra Online
3,352
+22%
TripAdvisor Inc.
3,176
-35%
CLEARTRIP.COM
2,645
+37% INDIARAILINFO.COM
2,495
+125% +25%
25.5
7,602
GOIBIBO.COM
2,253
REDBUS.IN
1,620
Holidayiq
1,597
+19% MUSTSEEINDIA.COM
1,584
+102%
Minutes per Visitor
Indian Railways
+40%
42
7.6 3.8 5.5 6.4 25.2 3.5 6.5 2.4 3.4
source: comScore Report ‘India Digital Future in Focus- 2013’, August 2013 © comScore, Inc.
Proprietary.
Internet Audience 15+ accessing Internet from a Home or Work PC Source: comScore Media Metrix, March 2013
43
THINK DIGITAL
Real Estate Top Indian Real Estate Sites Unique Visitors (000)
Minutes per Visitor
MAGICBRICKS.COM
19.3
1,809
99ACRES.COM
15.8
1,391
COMMONFLOOR.COM
5.9
846
INDIAPROPERTY.COM
9.6
618
Sulekha Property
7.5
551
MAKAAN.COM
383
Sulekha Rentals
382
© comScore, Inc.
9.5 10.8
Internet Audience 15+ accessing Internet from a Home or Work PC
Proprietary.
Source: comScore Media Metrix, March 2013 Substantial Interest in Indian Real Estate Comes from Outside Country Indicates Interest in Investment or Vacation Properties from Abroad
50
Share of Audience Outside India
MAGICBRICKS.COM
1,809
99ACRES.COM
1,391
COMMONFLOOR.COM INDIAPROPERTY.COM Sulekha Property
846
208
160
138
618
189
551
10% 10% 14% 23%
94
15%
MAKAAN.COM
383
54
12%
Sulekha Rentals
382
66
15%
UV (000) Within India
UV (000) Outside India
source: comScore Report ‘India Digital Future in Focus- 2013’, August 2013 © comScore, Inc.
Proprietary.
Internet Audience 15+ accessing Internet from a Home or Work PC Source: comScore Media Metrix, March 2013
51
THINK DIGITAL
Low Search Rate & 4th Largest Audience India’s Low Search Rate per Searcher Indicates Market Upside Average of 94.5 Searchers per Searcher is Well Below Global Average 182.1
Searches per Searcher
Average Searches per Searcher
WW Avg. 119.7 Searches /Searcher
137.9
127.8
114.5 94.5
78.3
China
United States
Japan
© comScore, Inc.
India
Germany
Brazil
54
Internet Audience 15+ accessing Internet from a Home or Work PC
Proprietary.
comScore qSearch, March 2013 India Now The 4th Largest AudienceSource: of Searchers in the World Unique Searchers in India Grew by 28%
Unique Searchers (MM)
+8%
296.2
Growth in Unique Searchers March 2012 to March 2013
Worldwide, the number of unique searchers grew by 6% over the same time period
320.4 +5%
230.0
241.9
-4%
+28%
80.4 76.9
China
United States
Japan Mar-12
52.6
67.5
India
+2%
59.6 60.9
Germany
+35%
44.7
60.5
Brazil
Mar-13
source: comScore Report ‘India Digital Future in Focus- 2013’, August 2013 © comScore, Inc.
Proprietary.
Internet Audience 15+ accessing Internet from a Home or Work PC Source: comScore qSearch, March 2012 and March 2013
53
INDUSTRY | SHORT TAKES
Prerna Sharma prernas@cybermedia.co.in
Microsoft CEO Steve Ballmer to Retire within 12 Months
M
icrosoft Corp announced that chief executive officer Steve Ballmer has decided to retire as CEO within the next 12 months, upon the completion of a process to choose his successor. In the meantime, Ballmer will continue as CEO and will lead Microsoft through the next steps of its transformation to a devices and services company that empowers people for the activities they value most. The special committee is working with Heidrick & Struggles International Inc, a leading executive recruiting firm, and will consider both external and internal candidates.
WorldFloat.com Crosses 20 mn User Base
W
orldFloat.com, India’s very own social networking site, launched in June 2012, claims that it has crossed 20 mn user base in more than 60 countries. The user base for WorldFloat is growing at a rate faster than other social networking sites. Currently, with a user base spread in more than 60 countries, the popularity of the site is gaining new heights each day, said WorldFloat in a press release. As a special platform WorldFloat’s News Feeder will offer its users to speak up, debate, and discuss about their respective cities from over 43,000 cities in the world. Besides connecting with their friends across borders patrons of WorldFloat.com get access to live news, entertainment, and social networking.
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A CyberMedia Publication
Dell India Launches 100th Exclusive Store in Bengaluru
D
ell India announced the opening of its 100th Dell exclusive store in Rajajinagar in Bengaluru. Located on Dr Rajkumar Road, 4th Block, Rajajinagar, the store offers the entire range of Dell’s consumer products—laptops, AIOs, and desktops from the Inspiron, XPS, and Alienware brands, as well as related peripherals. In India, the process of buying a laptop or desktop is still a significant decision by consumers. The wide display of products and knowledgeable staff allows the customer to enjoy a rich technological experience with an environment to make an educated and informed purchase decision, said Dell. Dell in India plans to double the number of Dell exclusive stores in next six months. With this plan, Dell India also plans to deepen its foothold in tier-2 and -3 markets.
www.dqindia.com
August 15, 2013
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113
INDUSTRY | SHORT TAKES
Class Action Lawsuit Against iGATE Dismissed
Alok Gupta Succeeds RK Malhotra as President of PCAIT
T
he Progressive Channels Association of Information Technology (PCAIT), a non-profit association co-creating the growth and harnessing the potential of the Information Technology Industry, elected Alok Gupta as the president of association for the year 2013-14. The newly elected Executive Council members during their first meeting unanimously elected Alok Gupta, MD, Unistal Systems for this post. Prior to Gupta, RK Malhotra was the president of the association.
i
Gate Corporation in a news release had stated that the class action lawsuit filed against the company and its former CEO, Phaneesh Murthy, (the ‘defendants’) by a shareholder of iGATE on June 14, 2013 in the US District Court for the Northern District of California, was voluntarily dismissed by the shareholder plaintiff, without prejudice. No payment or consideration of any kind was made by any of the defendants in connection with the dismissal. “We are pleased to put this matter behind us,” commented Gerhard Watzinger, president and CEO of iGate. “With this resolution, we can move forward and continue to focus on delivering the top-quality services and solutions iGate customers have come to expect.” It may be recalled that a New York based law firm—Pomerantz Grossman Hufford Dahlstrom & Gross LLP, on June 14, 2013, filed a class action lawsuit and contended that iGate had made false statements regarding its business and operations and details of its top managers like Phaneesh Murthy. With the current ruling in iGate’s favor is a big breather for the company which was in the news for all the wrong reasons post the Phaneesh—Araceli Roiz issue. 114
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August 15, 2013
www.dqindia.com
TE Eyes 4G, Optic Fiber Rollouts
T
E Connectivity is banking high on ambitious national optic fiber network (NOFN) and Network for Spectrum (NFS) for defense services as well as 4G rollouts in India. The company is setting up a new 25-acre facility in Bangalore which will be operational by May, 2014. TE that has 490,000 kms of undersea fiber, believes that fiber-based networks would be the future for all connectivity needs.TE Connectivity India & Saarc director KK Shetty feels that infrastructure is a huge challenge in India. “Managing fiber backbone is not as easy as copper and a right solution is needed for its management,” Shetty said. With end-to-end solutions for telecom networks, enterprise customers and data communications, TE enables communications networks across sectors with 500,000 interconnect products. It has already connected more than 30,000 homes with fiber in India. A CyberMedia Publication
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INDUSTRY | SHORT TAKES
Leo Puri Resigns from Infosys An independent director at Infosys, Leo Puri has stepped down from this role from the board of directors. Infosys now has 15 directors on its board—eight of them being independent directors including Ashok Leyland executive vice chairman R Seshasayee, and former ICICI Bank MD and CEO KV Kamath. Infosys had appointed Leo Puri as an additional director of the company from April 11. He joined UTI as the MD and chairman early
in July. It was announced that Puri decided to let go of his role at Infosys. Puri’s resignation comes at a time when Infosys is going through it’s biggest change so far as it founder Narayana Murthy returned from retirement to save Infosys from declining further. UTI Asset Management Co is India’s fifth largest wealth manager. The MD position at UTI was vacant for two years after UK Sinha quit in February 2011. Leo Puri was appointed MD earlier this month.
ASUS Launches its 1st Exclusive Store in Patna
Nokia Lumia 625, 925 Comes to India
A
SUS India announced the launch of its first exclusive store in Patna, Bihar. The new outlet will feature the brand’s entire range of ultrabooks, notebooks, netbooks, tablets, and phablets that have been launched in India and the visiting customers would get an end-to-end, compelling shopping experience. The new store will have the company’s entire range of Eentertainment, classic, versatile, and elite series of products. End users can look forward to the latest Gaming notebook G74SX and experience the thrill of 3D vision. Product range also includes the Eee Pad Transformer, which is the best tablet choice for users looking for both media consumption and mobile productivity with an expandable keyboard docking station. The New U Series Bamboo Collection (a followup to the first Bamboo Series launched in 2008) blends the wonders of natural design with cutting edge notebook computing and stylish mobility. |
A CyberMedia Publication
N
okia has introduced Nokia Lumia 625 and Lumia 925 in the Indian market. Priced at Rs 19,999 and Rs 33,499 respectively, the devices are already available on leading e-Commerce portals. The new Nokia Lumia 625 comes with Windows 8 OS and 1.2GHz dual-core processor and features 4.7inch LCD display. The device also allows consumers to download movies via natively-built app. With 4.5-inch AMOLED ClearBlack display with a resolution of 768x1280 pixels and Gorilla 2 Glass, Nokia Lumia 925 is powered by 1.5GHz dual-core Snapdragon processor. It features an 8.7-megapixel PureView rear camera and 1.2-megapixel wide-angle front camera. Nokia Lumia is also available with EMI option while Lumia 925 comes with introductory offer. The devices have 2,000mAh battery. Nokia is also offering 10GB of content download for free through Ozone Wi-Fi zones across India at more than 800 youth hangout zones during the first-three months. www.dqindia.com
August 15, 2013
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115
LAST MATTER
Ed Nair ednair@cybermedia.co.in
Filling in the Shoes
D
on’t we wish that there was another Steve Jobs or for that matter another Einstein or Leonardo da Vinci? The world could then enjoy the fruits of their contribution twice over. Not every company or institution is lucky like Infosys to get an icon like Narayana Murthy back at its helm. The world is eagerly looking at who would be the next CEO of Microsoft once Steve Ballmer’s tenure ends. The decision about leadership succession is thorny. When one rises to the level of being an icon, it is impossible to replace the individual. That’s the reality. But the expectations of the world from the one who succeeds an icon are set very high. Either it suppresses the individuality of the person or then the person’s success is never given the due credit. It is no fault of Steve Ballmer that he couldn’t pull off a Gatesian miracle. Think of this- couldn’t things have been worse for Microsoft if it had not been for the big hairy (or bald?) audacious Ballmer? Quite possible. The new guy succeeding an icon often gets shortchanged. She or he inevitably falls into the trap of comparison and as mentioned before, it inhibits the person from unleashing true potential. But there’s an upside to filling into the shoes of an icon. If performance can be shown, it gives the successor the opportunity to ‘de-iconize’ the organization, provided the successor doesn’t attempt to become an icon himself. A very good example of this is Kiran Karnik taking over Nasscom after Dewang Mehta’s untimely demise. Kiran Karnik ably led Nasscom and corporatized the association and took it to a different league. It was a befitting act to follow up on Dewang Mehta’s legacy. How does one go about appointing a successor? It is definitely a prudent way to groom a successor over a period of time and let the person and world know about it. A good example is that of Jeff Immelt who was groomed by Jack Welch. A random appointment of GE chairman, however proficient and prolific an individual she or he may have been, would have become a case of open scrutiny and censure. In GE’s case, Jack Welch continued to have some stake in Jeff Immelt’s success for long after Welch stepped down. The continued mentoring is clearly an advantage. But it may not always be possible to groom a successor; the set up may not be geared for it. In that case, an appointment based on merit is the only course. The options here are between an insider and an outsider. Both options have their own merits and demerits. If an insider has a big stake in the success of the role and has commensurate merit, it may be the best bet. This works well especially for positions such as group chairmanships and not for executive positions like CEO. Cyrus Mistry succeeding Ratan Tata is an example. Mistry was so much invested into the Tata Group (in terms of professional achievement and lineal legacy) that it is a given that his need for success is high. The same goes for rotation of the CEO role amongst founders at Infosys. All said, succession choices are more of an art than science.
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