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Rank 19: Patni Computer Systems: The Quiet Climber

author-image
DQI Bureau
New Update

NK Patni
Chief Executive Officer

Phiroze Kutar



Resident Director

Mrinal Sattawala



Sr V-P (Global


Sales & Marketing)

Vijay Khare



Senior V-P


(Delivery & Operations)


Satish Joshi


CTO


Russel Boekenkroeger


Senior V-P


(Products & Technology)





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Patni has entered the premier league of software exporters–inching

up the software exporters’ ladder, the company stands at #7 in the rankings

for financial year 2001-02. The year also marks Patni Comptuer’s debut into

the DQ Top 20 roster. A growth rate of 43%, well ahead of the industry average,

has seen the company notch up revenues to the tune of Rs 741 crore in the period

under review.

Performance

Highlights
Grew above industry average at 43% to touch



Rs 741 crore
Nearly 50% of the revenue comes in from fixed-price contracts
Strengths
Strong focus on brand creation and global marketing
Over 80% of revenues come from repeat business
Weaknesses
Over-dependence on the US market continues
Operates in the low to mid-range rungs of the value chain
Patni

Computer Systems Ltd.
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Startup:

1978
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Products & services:

Software development, consulting and services
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Branches:

20
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Address:

55, SDF-II, SEEPZ, Andheri (E), Mumbai-400096



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Tel:

8291454/8290479
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FAX:

8292764
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Website:



patni.com
 

Patni attributes its success to its strong and stable customer base, with 80%

of revenues coming in from repeat business. As of December 2001, the company had

a base of over 130 active clients. The company has been investing heavily over

the last two years in building up its sales and marketing teams, and this has

started paying off now–with a nearly 20% increase in long-term multi-year

assignments every year. Realizing the need to spread itself beyond insurance,

banking & financial services, and manufacturing, Patni has identified four

new verticals to target–retail, energy and utilities, hospitality, and

possibly healthcare. Patni Computer has already signed up significant clients in

these verticals. Also, there are plans to scale up operations worldwide with the

aim of gaining a reasonable marketshare in these segments.

Having showed consistent growth in the late nineties, the company’s climb

hit a plateau by the millenium year. In mid-2000, McKinsey & Co was brought

in to restructure the business and ramp up future growth. This exercise resulted

in the formation of nine special business units, some focused on industry and

the others on technology.

Business from General Electric, the largest account that the company has–and

this has been running for 14 years now–was hived off into a separate SBU.

Nearly 84% of the company’s revenues come in from the United States, and

efforts are on to reduce the heavy dependence on this market geography. Patni

Computer’s business model is such that nearly 50% of revenues come in from

fixed-price contracts. And as has been the trend in the industry this year, 67%

of overall revenues came in from onsite projects.

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