Patni Computer Systems Ltd – Outsourcing Specialist

Jumping 10 ranks in the DQ Next 30 Club, this year, Patni Computer Systems Ltd has
witnessed a growth of over 60 percent in its revenues. Continuing its steady growth rate,
it has grossed Rs 137 crore last year. Patni is getting into an area of high global

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JOINT
MANAGING DIRECTOR: AK Patni * PRODUCTS AND SERVICES: Systems,
Package Software, Networking, Facilities Management
* TECHNICAL COLLABORATION: Data General Corp. * AGENCY OPERATIONS: Cabletron Systems, IBM * START-UP YEAR: 1984 * EMPLOYEES: 609 * DEALER OUTLETS: 163 * ADDRESS: 310/316, Raheja Chambers, Nariman Point,
Mumbai 400021
* TEL:
2875525-28
* FAX: 2873984
 

PERFORMANCE HIGHLIGHTS

  • l New development centers at Mumbai, Thane, and Pune.
  • l A three-year ODC contract with Hitachi, Japan.
  • l Existing ODC contract with General Electric has been renewed for three years.

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demand. A worldwide implementation partner for BaaN it also does Oracle and SAP
implementation though there is no formal engagement with the companies. It has already
started two Euro projects. Its Y2K-related work accounted for 18 percent of the total
revenues last year, which would increase to 27 percent in the current year. The company is
now starting to focus on tools for ecommerce, datawarehousing, and ERP. Application
maintenance work is being done but the company feels that application outsourcing will
grow.

Approximately 64 percent of the revenues last year came from offshore projects. Growth
has been consistent in all its identified markets (with the US contributing 80 percent of
the annual revenues, and Japan and Europe pooling in the rest). In addition, Patni has
added 15 new customers during 1997-98. A three-year Offshore Development Center (ODC)
contract has been finalized with Hitachi, Japan. The company’s existing ODC contract with
General Electric Company has also been renewed for an additional three years.

Presently the company is putting together the building blocks to enhance its global
competitiveness-building a worldwide marketing organization to sustain global business and
managing distributed development centers in India. Two-and-a-half years back, the company
decided to go out of Mumbai and its first center, with a strength of 350 people, was set
up at Pune. During 1997-98, Patni added large new development centers at its Mumbai,
Thane, and Pune facilities. An additional 500-people development center is on stream to be
commissioned during 1998-99. The company is targeting a growth of 65 percent in the
current year.

In line with its future thrust as a transnational software and applications outsourcing
company, significant new investments in the overseas marketing and support offices, as
well as local development centers, is also being planned for 1998-99. In addition to the
existing seven offices, four more offices are planned in the US, UK, and Europe.

PCS’ strategic business plans are built around several focused and mature service
offerings. Embedded expertise, methodologies, delivery paradigms, and best practices
provide exceptional value to the client base, and position the company very well to
increase penetration as a full-service outsourcing solutions provider to the major global
markets.

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