Rank - 33 : Syntel : The Fixed Benefit

Given the recession, Syntel would surely deserve an A
ratingthe topline growth might not have been spectacular, but net income
increased by 37%, while operating margins expanded to 30% from 24%. The
contribution from Applications Outsourcing increased from 67% to 73% at the
expense of both KPO (down from 20% to 18%) and e-business (from 11% to 7%). This
implied a significant increase in the offshore component which stood at more
than 80% for FY10. The ability to convert many of its time & material deals to
fixed price ones (44% of revenues) as well as generating 70% revenues from
annuity based ADM contracts also paid off.

The ability to deliver platform based solutions involving
both Application Outsourcing and KPO plus leveraging on its own products also
stood Syntel in good stead during FY10. The depth of its industry expertise was
an added advantagefinancial services (57%), healthcare (15%), insurance (18%),
auto (2%) and retail (2%). The domestic business that was growing in the last
two years, however, suffered a setback in FY10 when one of its biggest Indian
clients, Reliance Money, closed the engagement as part of its scaling down
exercise.