The company’s global business strategy of serving a select band of
customers has started paying off.
|ACTING CEO:Sunil Kunte PRODUCTS AND SERVICES: Software|
Development, ConsultancyÂ START-UP YEAR: 1996 EMPLOYEES: 903Â * ADDRESS: ICIL, Hidayat
Building, 2390/B, KB Hidayatulla Marg, Pune 411001Â TEL: 644051/215/216Â FAX:
Moving up the value chain
and addressing newer markets will spur revenue and profit growth for International
Computers India Ltd (ICIL). It was the only entity doing well in an otherwise ailing
company. And when it went on its own, it started doing even better. ICIL was formed when
the international software division of Fujitsu ICIM Ltd was spun off as a separate entity.
The company registered a modest growth of 27.3 percent last year. With a total revenue of
Rs 108.62 crore and an expected profit after tax of Rs 17 crore, ICIL aims to be the
preferred employer for software professionals and the first-choice IT partner to its
clients in the operating territories.
Translated into operational strategy, ICIL chooses to focus
on 10-12 large customers in the US, Europe, and Asia Pacific and deliver a wide spectrum
of services to them–Sprint and Cisco in the US, and British Gas and Lombard Group in
the UK. Business development for offshore business in the US and Europe is handled by ICIM
International Inc. (III), its subsidiary in the US. Markets in Singapore, Australia, and
Japan are directly handled.
The company follows a judicious mix of 65 percent of onsite
work with 35 percent offshore development. It allows for a good balance between cash flow
and people retention. The Cisco project is the first example of a full offshore
implementation of ERP. Amongst last year’s project is the successful implementation
of virtual software factories.
The focus area this year will be ERP (Oracle Applications
and PeopleSoft), Euro Money Conversion and ecommerce. ICIL has consciously restricted its
Y2K business to around 5 percent because it wanted to be involved in activities that are
higher up in the value chain. In doing so, the company plans to make the lines of business
more product-focused. Hence coming out with at least two products a year from now on.
The company’s plan to rein attrition rates includes
providing a learning environment and engaging in leading-edge projects. Creation of
personal wealth through stock options and having a compensation structure that is in the
top 75 percentile of the industry is an added attraction. The company is currently
undergoing audit for SEI Level 4 certification.
For the future an aggressive growth strategy is being
pursued for the developed markets in the US and Europe. Newer markets like Hong Kong, New
Zealand, Australia, and Singapore will be approached with a ‘foot in the door’
strategy. Ecommerce avenues in retail and financial lines of business will be given
special thrust and ERP will be pursued as a separate line of business. Target growth rate
in revenue is 40 percent with 80 percent growth in profit before tax and only 20 percent
expansion in manpower.