Brand Re-call?
Towards the beginning of FY 09, Sun was declared as one of Indias
strongest brands but by the year end, following Oracles announcement to acquire
Sun, its very existence became doubtful. Sun established an emerging markets
sales region consisting of India, Greater China, Latin America and Southern &
Eastern Europe, and appointed former India marketing head, KP Unnikrishnan, as
the regional marketing director. It also rolled out a regional telecoverage
model across emerging markets to target SMBs, startups and Web2.0 companies.
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Highlights
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Sun India saw long time head Bhaskar Pramanik being replaced by Anil Valluri.
It was a year of active relationships with educational institutionswhile Sun
set up a digital campus for Swami Vivekananda Institute of Engineering &
Technology, and a CoE for e-gov with IIT Delhi, it partnered Amity and Karunya
universities to upgrade curricula and Visvesvaraya Technological University to
launch Edusat program. Sun was a vocal green proponent advocating its eco
computing concept throughout the year. Sun had to lay off more than 300
employees and disband three software divisions. But a five months compensation
on CTC basis made the separation more humane.
Bottom Up
After achieving 50% plus growth for two consecutive years, Sonata barely
managed on 11% in FY 09 though bottomline grew by 31%. It added twenty-one new
clients, thanks to its focus on travel and ERP expertise. While travel was
already a major contributor to Sonatas topline, the appointment of Mahesh
Shastry as the head of global travel business bode well for future expansion. In
fact, the Middle East entry with a fully owned subsidiary in Dubai Internet City
proved beneficial for the company.
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On the ERP front, SAP signed up Sonata as its partner in India. Sonata also
bagged a multi-year, multi-country contract from a large financial services
company to implement Oracle Apps ERP across several of its APAC locations. It
was also working with a leading airline for its Oracle ERP application. A global
staffing services firm signed it up for developing apps on Microsoft Sharepoint
Online and a US based global document management company for consulting on
analytics.
Swearing by India
Plano, Texas based Perots offshore commitment got stronger, considering
that Anurag Jain, its global head of applications and BPO and the head of APAC,
operates out of India. Perots chairman of consulting visited India in Q4 08
and reiterated the companys commitment to shift more work to India.
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The increasing pricing pressures seemed to have led to this aggressive
offshore expansion. In India, the companys headcount was close to 8,000,
accounting for one-third of its global workforce. During FY 09, a new delivery
center came up in Chennai (its fourth in India), while plans were drawn up to
have three more centers in Coimbatore, Pune, and Hyderabad.
On the HR front, the focus was on launching an associate engagement program
called REACH. Recognitions followed, as it was rated one of the best workplaces
in India. Nevertheless, Perot could not insulate itself completely from the
slowdown. Towards the year-end, it was rumored to have fired more than 400
employees from its Noida and Bengaluru centers.
India still Shines
The filing of Chapter 11 bankruptcy in Canada initially cast a shadow on
Nortels future in India. The apprehensions, however, proved to be largely
unfounded as the affiliates in Asia (including India) were not included in these
proceedings. The exclusion of government business from the Chapter 11
proceedings was a good omen as in India, this sector contributed the maximum
revenue for Nortel during FY 09. The Ministry of External Affairs, Chhattisgarh
government, and Delhi Airport were some of the marquee deals.
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Nortel India signed 100 contracts with domestic companies valued at about Rs
75 crore in the last two months of FY 09 since its parent company filed for
bankruptcy. While 70% of the signings were renewals of existing contracts like
SBI, Nortel managed to rope in some new customers like Reliance Communications
and UBI. Education too was big, with Nortel bagging a contract from NERIST to
implement wireless mobility across campus with Wireless Mesh and WiMax
solutions. On the LG-Nortel business, the company announced the launch of its
managed PBX services for SMBs in conjunction with Tata Teleservices.
Inorganic Nirvana
Strategic acquisitions were key to growth in FY 09. If addition of Chicago
based Piocon Technologies helped Rolta position itself as a BI solutions
provider to the engineering and oil and gas sectors, the Whitman Hart
acquisition gave it skills in Oracle Hyperion space. Orion Technologies
acquisition made Rolta a leading photogrammatry and imaging technologies player.
Its GIS business grew 25%. All these acqusitions, and the earlier TUSC
acquisition, helped Rolta position as a specialized SOA player, with revenues
from SOA increasing to 30% in
FY 09, from 7% in FY 08.
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Nearly 50% of the business came from India with large clients like Reliance
Industries and NEPC coming to the kitty. While telecom infrastructure, power
utility, government, and defense continued to be the key markets, it added
homeland security as a focused business line last year. The engineering
business, after a momentary slowdown-induced lull, picked up again. So did the
GIS deals.
Rolta won contracts from AT&T, Eon, Chevron, and is currently developing a
complete chemical plant for Exxon Mobil in Singapore. It also won several deals
in the utility space.