Big Deal!

In 1986, Arun Jain formed Nucleus Software along with Vishnu Dusad. Four

years later, he moved to Chennai to form Polaris Software Lab with an investment

of Rs 25,000. One of India's top IT companies today, Polaris recently merged

with Orbitech to become a Rs 650-crore player in the business financial services

and insurance (BSFI) segment

What

does the merger with Orbitech signify?



The merger has helped Polaris cover a milestone in its strategic roadmap,

placing it in an enviable position to build and service larger relationships.

The gauging parameters of the Indian software industry have evolved from cost to

quality and now to reliability. I see the next shift toward speed and from there

to customer choice. Orbitech brings in these elements and will ensure that the

new Polaris emerges as the most comprehensive services and solutions provider in

the BFSI space. This is also the first time that the management of a

multinational entity has been given to an Indian company.

What

are the effects of the majority control by Citigroup?



Our relationship with the Citigroup is not new and its investments date back

to 1997. Also, the current stake of 50% will come down to less than 40% in due

course of time. So from Citi’s perspective, it’s merely a financial

investment transaction. However the upside for Polaris is a $6 billion

opportunity available within Citigoup. The new combined entity still caters to

an insignificant portion of the $6 billion IT spending within the Citigroup. And

since Citi is in the banking business and not technology business, I think the

merger will provide a great opportunity within and outside Citi’s fold.

Is

the majority Citi control going to create conflicts when clinching other BFSI

clients?



Citi is both a partner and an investor for Polaris. As an investor I know that
an association with one of the largest global investors would be good for any

company’s business. As a partner, we have been able to create IPRs with one of

the world’s most reputed banking institutions. And we intend to leverage on it

to clinch other clients. Skeptics may contend that banking institutions have a

problem if a large chunk of their business comes in from Citi. But experience

has shown that there are very few players in the Citi league and definitely

these handful of banking and financial institution may see us as a problem.

Other banks should not for they would see us as a company with strong

fundaments, robust technology platforms, sound systems, processes and

capabilities.

Do

you have any ITeS initiatives?



We want to be an end to end player in the BFSI segment and ITeS would be an

extension of the same. We already have on board Harpal Duggal, ex CEO, Standard

Chartered, who will bring in the operational knowledge. With the merger, we will

have access to credit card and retail banking software as well.

What

is your take on insider trading allegations?



We have complied with the regulations of SEBI and other statutory

authorities of India. Moreover, Polaris is among a handful of companies which

has formulated its own 'Insider Trading Regulations' which have been in effect

since December 15, 1999. The guidelines are part of the corporate policy and

strictly adhered to by all Polaris associates. We are stringent on any insider

trading issues and have built the safeguards of the policy. For example,

associates are required to obtain prior approval of the committee for

transacting in excess of 250 shares of the company in a calendar month or any

transaction. Excess of 1000 shares in a calendar month needs the approval of the

CMD of the company.

Yograj Varma with inputs from Shubhendu

Parth, new Delhi