45. Mastek: Transitive Lull

In January this year, Mastek became the first Indian company to issue a profit warning for the JFM quarter. It later announced a profit of Rs 11 lakh for the quarter, on revenues of Rs 60

crore. As for 2000-01, Mastek earned revenues of Rs 261 crore, registering a growth of just 5% over Rs 247 crore in 1999-00. The performance was attributed to a shift in thrust–from consulting to the outsourcing business.

Domestic earnings fell from Rs 6.1 crore to Rs 4.7

crore. The United States remained the most favored destination, accounting for 49% of software exports revenues, but Europe caught up, with 44%. The company also made inroads in the Japanese market, which contributed 1% to the export revenue.

The company has put in place a six-pronged strategy for expansion–an increase in offshore outsourcing, focus on high-growth markets, geographic expansion, acquisitions in the US and Europe, alliance and joint ventures, and moving up the value chain. Mastek also got assessed at the SEI-CMM Level 5 and

P-CMM Level 3.