IIS Group Slow Growth

The IIS Group was not able to keep in
tune with the changing times. Though it broke into DQ Top 20 software exporters
ranks with Rs 162 crore software exports in the last fiscal, the overall
performance of the group was far from satisfactory. Revenue figures covered
those of IIS Infotech, IIS Inc and IIS, with the IIS Group holding 100% in all
of them. Of these, IIS Infotech, at Rs 108 crore, contributed 60% of the total
turnover, while IIS Inc contributed 30% with Rs 52 crore and IIS shared 11% with
Rs 20 crore.

Overall,
the company was able to grow only by 14%. It clocked a turnover of Rs 179 crore
in the last fiscal as compared to Rs 157 crore in the previous year. Software
exports grew by 15%, while domestic revenues went up by 3% only. Software
exports contributed 90% of the total revenue, while the domestic market took
care of the remaining fraction.

Looking
at the segment-wise revenue, packaged software, which consisted of IFS and
Cognos, contributed a mere Rs 2 crore, barely 1% of the total turnover. Services
constituted the largest chunk at 91% through a contribution of Rs 162 crore
while education garnered Rs 15 crore, an 8%
of the group’s turnover.

The company increased its marketing
focus on the European markets, including the UK. It was also able to make
inroads into Germany. Apart from Europe, the company set up a support office in
the US as well.

The IIS Group will be setting up a marketing office in
Australia. It also plans to harness the domestic market and has struck a
partnership with Ecosoft, the software subsidiary of the Escorts Group, for
marketing and implementing its ERP package, IFS. DQ

Fact Sheet

START-UP YEAR: 1989 PRODUCTS AND SERVICES: Software
development, consultancy, training EMPLOYEES: 1,033 BRANCH OFFICES: 7 DEALER
OUTLETS: 150 ADDRESS: C-2, Sector-1, Noida 201 301 TEL: 454 8601-608 FAX: 454
1739 WEBSITE: www.iisinc.com