The DQ 21-25

Ground Realities

APC was impacted by the slowdown after the heady 27% growth in FY 08. Seems
that its continued focus on energy efficiency did not cut much ice with
customers during the downturn. The saving grace for APC was its data center
business, where it managed to bag a few greenfield contracts. While L&T was one
of its key customers, APC also won a multi-million dollar contract from the
excise and customs department for its nationwide IT implementation.

Channel focus was enhanced to support these growing businesses, allowing APC
to reach 270 locations by the end of the year. The company started a centralized
India repair center next to its factories in Bengaluru. Next it kickstarted a
Channel Partner Programin association with Rashi Peripheralsto increase its
presence to more than 400 locations. In fact, to increase market penetration,
APC started co-funding sales professionals in class-C and class-D cities,
maintaining support professionals in any upcountry market with a high PC to UPS
ratio, and ensuring direct billing of all resellers from national distributors.

RANK 21	APC-MGE
Srinivas Chebbi, MD
Highlights Launched enterprise customer care program for experience delivery Won Energy Efficient Products category of the 2009 Green Enterprise IT (GEIT) Awards l Start-up Year: 1999 l Products & Services: Critical power, cooling, racks and enclosures l Address: 27, Lavelle Road, Bengaluru 560001 l Tel: 08039870000 l Fax: 08022213816 l Website: www.apc.co.in

A Year to Forget

If Dell was the outright winner in a rather subdued PC market in FY 09,
Lenovo was the biggest loser. Lenovo lost maximum ground since it took on IBMs
PC business, losing both market share and revenues. Blame it on the slowdown,
coupled with senior management attrition. Lenovo was in troubled waters
globally, and the net loss of $226 mn and the axing of 3,000 employees, impacted
the India business.

RANK 22	Lenovo India
Amar Babu, MD
Highlights Market share went down due to predominantly high-end products Launched its own brand of netbooks l Start-up Year: 2005 l Products & Services: Desktops, notebooks, servers and workstations l Employees: 352 l Address: Embassy Golf Links, Business Park, 2nd Floor, Fair Winds, No 10/3, Koramangla Intermediate Ring Road, Bengaluru 560071l Tel: 08030533192 l Fax: 08030533003 l Website: lenovo.com.in

While in H1 09, Lenovo managed to sustain its revenues, in H2 revenues
declined by more than 50%, especially in OND. Dell and Acer fared well, eating
substantially into Lenovos market share.

The problem stemmed from Lenovos twin business model transaction and
relationship, and its ability to address the market in a down economy. That
apart, Lenovo also missed the government bus, while competitors like Dell and
Acer took on relatively recession proof verticals with gusto. Lenovo also lagged
in addressing the entry level market (Rs 25,000) owing to its predominantly
commercial approach. While it did try with its netbook in H2 09, the
anticipated demand never materialized.

Going Private Pays

Aricent managed to buck the recession in the first two quarters when it
bagged three mega deals. Q1 09 was momentous when Aricent recorded the highest
quarterly revenue in its history at an annualized run rate of more than $470 mn,
as well as its highest ever operating income, besides signing forty-nine new
customers (another quarterly record).

RANK 23	Aricent
Sudip Nandy, ceo
Highlights Involved in Project Masiluleke in South Africa, where mobile phones have been used for HIV/AIDS and TB care Appraised at Maturity Level 5 of CMMI Launched mobile client framework, Celltop worldwide l Start-up Year: 1991 l Products & Services: Telecom software products, telecom outsourcing business l Employees: 7,310 l Address: Plot 31, Electronic City, Sector 18, Gurgaon 122015, l Tel: 01242346666 l Fax: 01242455100 l Website: www.aricent.com

Continuing with its India-focus, out of the 22% APAC revenue for FY 09,
India contributed the lions share. Aricent was in talks with Indian telecom
operators to set up an innovation lab in Gurgaon to develop products, platforms,
and user interface for different user segments, especially in rural India.
Expansion plans of global workforce by 10% also put emphasis on India, where it
added 1,453 new employees in FY 09. To manage it all, Aricent appointed Wipro
veteran Sudip Nandy as CEO, and Sanjiv Handa as VP, finance.

During FY 09, Aricent received a new round of funding to the tune of $60 mn
from the existing investor, KKR, and a new Bahrain based investor, The Family
Office.

Indo-French Tango

Despite dealing with three currency fluctuations in FY 09, Capgemini grew
its Euro revenue, thanks to its business in the French and Nordic markets as
well as its success in the public sector and financial services businesses. New
acquisitions like Maxeda and Getronics PinkRoccade gave the company access to
large public sector projects in the Netherlands, while the earlier acquisitions
of Software Architects and Kanbay helped financial services grow. Much of the
outsourcing work continued to be delivered out of India.

RANK 24	Capgemini India
Baru Rao, CEO, India operations
Highlights Created a platform service called Crescent (Capgemini retail solutions center of excellence) for easy deployment of ERP systems Experimented with providing BPO services in a hub-and-spoke model from tier-2 cities like Salem l Start-up Year: 1997 l Products & Services: Consulting, technology & outsourcing l Employees: 19,973l Address: SEP-2, B-3, Godrej Industries Complex, Eastern Express Highway, Vikhroli (E), Mumbai 400079 l Tel: 02266421000 l Fax: 02225187100 l Website: www.capgemini.com

By the end of FY 09, a quarter of Capgeminis global workforce was in India.
It also leveraged India leadership talent globally. While former chairman Salil
Parekh became a part of the group executive committee, leaving Baru Rao to run
India operations as its CEO, Aruna Jayanti went on to head the global delivery
for outsourcing practice.

Despite being a late entrant, consulting was one of Capgeminis most
profitable businesses locally with four significant wins. While manufacturing
and retail accounted for 27% of overall revenues, BFSI remained the key driver
contributing 40% of the revenues.

Consolidation Mantra

It was a year of consolidation for CSC, the worlds third largest IT services
player that turned fifty, after the spurt of acquisitions in FY 08 (Covansys
and FCG). Nevertheless, CSC still acquired Log.Sec to strengthen its logistics,
IT infrastructure and public sector operations.

RANK 25		CSC India
Vivek Chopra, group president, India operations	Krishnaswamy Subrahmaniam, president & MD, India operations
Highlights CSC operations in India received insurance trade body LOMAs 'Excellence in Education' Award for the sixth time in a row Increased focus on green initiatives in its India delivery centers l Start-up Year: 1994 l Products & Services: Application services, infrastructure services, BPO services l Employees: 16,783 l Address: Unit 13, Block2, SDF Buildings, Madras Export Processing Zone, Chennai 600045 l Tel: 04443722222, 04466282559 l Fax: 04422628171 l Website: www.csc.com/in

In India too, though the workforce was strengthened by 5,000, the focus
remained on scaling up the seven existing centers. The dedicated ODC for
Mercator in Bengaluru became fully operational, while the company created an SOA
testing CoE in Chennai after partnering with iTKO to offer SOA testing services
globally. Vivek Chopra was appointed as group president, and Krishnaswamy
Subrahmaniam as president & MD.

Though healthcare grew significantly (it launched enterprise content
management for life sciences), CSC India focussed on new areas like cloud
computing and desktop anywhere services. This evolution was essential, since ADM
still accounted for more than 70% of IT services revenues. Key deals included a
three-year agreement with VWR International to provide infrastructure support to
operations in China, India and Singapore, and a five-year deal with Exelon
valued in excess of $150 mn.