SSI

Another software services and IT education company finding the going tough is
Chennai-based SSI. While the company has been aggressive in expanding its
centers, performance has not impressed overly impressed investors. SSI has a
unique model–it operates through franchisees and education service providers,
offering short-term courses aimed at the high-end market with a focus on
enhancing existing IT skills. In the education segment, SSI derives maximum
revenues from short-term courses. The company has also opened centers in
Indonesia, Malaysia, Nepal and Bangladesh and plans to open some in Nigeria,
South Africa and China. Its software services segment provides services in the
area of banking, securities and telecom through its offshore development center
in Chennai. SSI raised $100 million and has acquired US-based Ablon Orion for
$63 million. It closed the year ended June 2000 with revenues of Rs 197.52 crore,
up 133%. Net profit in the same period stood at Rs 57 crore, up 215% over the
previous year. Its gross block grew by 111% to Rs 158 crore in June 2000. SSI
was ranked at #5 in sales growth, #9 in both profit growth and gross block
growth.