MASTEK: Anything but a Total Knockout

Nanda Kasabe and Rashida

Bakait/CNS

Atumultous period could be overcome either by sheer strength or wise

thinking. Mumbai-based software services company, Mastek has the bull by its

horns. The company has drawn up a multi pronged strategy for growth in the wake

of the slowdown in the IT sector. Apart from an expansion into non-English

speaking areas, the company plans to increase the outsourcing for Fortune 1000

companies.

Chairman and managing director Ashank Desai maintains that while Europe would

account for a substantial part of its offshore business, the company is also

bidding for large projects in UK. Europe currently accounts for 50% of the

company revenues.

Mastek recently completed a project for the simulation of a wafer fabrication

plant in Germany. The company made a foray into Japan with a sizable offshore

development project in the telecom sector.

"We are making special efforts to tap the Netherlands. We will probably

have a subsidiary in Switzerland this year," Desai said. Mastek already has

a subsidiary in Belgium.

The CMD mentioned that the company is venturing into new technology areas

like UTMS and embedded systems.

Currently, the non-English speaking countries account for 4 to 5% of the

company revenues. However, Desai expects this figure to grow faster than the

English countries. Mastek has formed a special cell in the company to execute

its offshore development strategy. The cell will receive proposals for offshore

projects, examine them and prepare and evaluate these in the interest of the

company.

The six point strategy on the company agenda includes increasing work from

offshore projects, building new technologies and products, forming alliances and

joint ventures, building domain knowledge as well as new acquisitions.

Desai cites the recent joint venture with Deloitte Consulting as a step

towards building its offshore strategy. The JV will offer India-based software

services in areas such as application development, systems

implementation/integration, and information technology outsourcing services.

The JV is the first offshore delivery relationship of its kind taken by

Deloitte Consulting. Although the name of the new company is yet to be finalised,

it has commenced operations in Mumbai. There are plans to induct around 600

professionals into the new company within the next three years.

Mastek had invested Rs 5.58 crore in its subsidiary- Varstreet. Although

Varstreet continues to be in operation, the company has decided to write off

this investment against the backdrop of the slowdown. A new facility will be

coming up at Mhape on the land taken by the Maharashtra Industrial Development

Corporation.

The Mastek group has declared a total income of Rs 260.87 crore for the

period July 2000 to June 2001, an increase of 2.8% over Rs 253.73 crore for the

corresponding period in the previous year. Desai expects growth to the tune of

10 to 15 per cent this year.

Nanda Kasabe and Rashida

Bakait/CNS