DIGITAL GLOBALSOFT: Settling Down

Significantly increases headcount; and more growth on the anvil with the slated takeover of the IT services division of HP ISO this year Gets into expansion mode–enters new regions, targets more non-HP business

This was the year the new avatar of Digital reached maturity. Revenue growth
steadied from a heady 80% in FY 2001-02 to 27% in FY 2002-03 and net profits
grew at 14%, compared to 71% the year before. It increased sales and marketing
expenses, infrastructure investment and upped the headcount by 68%. The Digital
Contact Center that started with a mere 30-man tech support center for HP grew
into a 500-person center that also caters to external enterprise customers.

Though HP and HP-billed revenues still account for 76% of total revenues,
non-HP business continued to grow. Key growth areas during the year were the
e-applications business, which now accounts for 40% of the company’s topline,
the enterprise solutions business (26%) and the telecom vertical. The clear
problem area–products continue to run at a loss.

President & CEO: Som Mittal Start-up year: 1988 Products & services: Software services Employees: 2,365 Address: 45/14, Tumkur Road, Yeshwantpur II Stage, Bangalore 560022, India Tel: 8528892 Fax: 8528908 Website: www.digitalglobalsoft.com