Zensar Technologies Export Slowdown

Zensar Technologies is the erstwhile
International Computers India (ICIL) re-christened, in the last fiscal. The name
change was necessitated by the need to bring in a new mindset, and distance the
company from its hardware past, while simultaneously presenting its software
identity. The name change was also prompted by the need of the software
developer to remove the misconception of being an Indian subsidiary of the
UK-based ICL since both had similar logos and names.

Zensar
maintained its 1998-99 growth rate 31% to touch Rs 18 crore. Software exports
grew by only 30% to clock Rs 185 crore, which incidentally constitued 99% of the
total turnover, with the rest coming from the domestic market.

However, the company saw a drop in its
net profit by 31% in the last fiscal. While the net profit was
Rs 25 crore in the previous year, it came down to Rs 18 crore in 1999-00. The
company also showed a drop in its operating margin, which came down to 12% in
the last fiscal as compared to 21% during the previous year. The onsite to
offshore mix was 82% to 18%.

The
US continued to bring in the largest share of software exports revenue at 55%,
followed by Europe at 28%. The company, which has already attained the SEI-CMM
Level 5, is targeting for the European Foundation for Quality Management (EFQM)
Level III, and expects a 10% reduction in the cost.

Zensar hopes to continue its long-term partnerships
that it has forged and to provide software business solutions to Fortune 500
companies. It has entered into a strategic technology alliance with Miscrosoft
as its ecommerce solutions partner and expects to leverage on its domain
expertise in creating products and branded solutions for the global market. The
company will continue to focus on new technologies and also develop new markets
overseas in the coming year. DQ

Fact Sheet

START-UP YEAR: 1996 PRODUCTS AND SERVICES: Mission
critical, ebusiness, ERP/CRM, networking and SEI-CMM consulting TECHNICAL
COLLABORATIONS: Microsoft, Oracle, Siebel, IBM EMPLOYEES: 955  BRANCH
OFFICES: 4 ADDRESS: Mile Post No. 4, Pune-Nagar Road, Pune 411 014 TEL: 668
4001-004 FAX: 668 2915 WEBSITE: www.zensar.com