Zensar Technologies Export Slowdown

Zensar Technologies is the erstwhile

International Computers India (ICIL) re-christened, in the last fiscal. The name

change was necessitated by the need to bring in a new mindset, and distance the

company from its hardware past, while simultaneously presenting its software

identity. The name change was also prompted by the need of the software

developer to remove the misconception of being an Indian subsidiary of the

UK-based ICL since both had similar logos and names.

Zensar

maintained its 1998-99 growth rate 31% to touch Rs 18 crore. Software exports

grew by only 30% to clock Rs 185 crore, which incidentally constitued 99% of the

total turnover, with the rest coming from the domestic market.

However, the company saw a drop in its

net profit by 31% in the last fiscal. While the net profit was

Rs 25 crore in the previous year, it came down to Rs 18 crore in 1999-00. The

company also showed a drop in its operating margin, which came down to 12% in

the last fiscal as compared to 21% during the previous year. The onsite to

offshore mix was 82% to 18%.

The

US continued to bring in the largest share of software exports revenue at 55%,

followed by Europe at 28%. The company, which has already attained the SEI-CMM

Level 5, is targeting for the European Foundation for Quality Management (EFQM)

Level III, and expects a 10% reduction in the cost.

Zensar hopes to continue its long-term partnerships

that it has forged and to provide software business solutions to Fortune 500

companies. It has entered into a strategic technology alliance with Miscrosoft

as its ecommerce solutions partner and expects to leverage on its domain

expertise in creating products and branded solutions for the global market. The

company will continue to focus on new technologies and also develop new markets

overseas in the coming year. DQ

Fact Sheet

START-UP YEAR: 1996 PRODUCTS AND SERVICES: Mission

critical, ebusiness, ERP/CRM, networking and SEI-CMM consulting TECHNICAL

COLLABORATIONS: Microsoft, Oracle, Siebel, IBM EMPLOYEES: 955  BRANCH

OFFICES: 4 ADDRESS: Mile Post No. 4, Pune-Nagar Road, Pune 411 014 TEL: 668

4001-004 FAX: 668 2915 WEBSITE: www.zensar.com