Dataquest 31 July

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VOL XXXIII No 14 I JULY 31, 2015

THE BUSINESS OF INFOTECH

Rank Company

Revenue

1

TCS

94,648

2

Cognizant Technology Solutions

65,779

3

Infosys Technologies

53,319

4

Wipro

47,318

5

Hewlett-Packard India

37,985

6

HCL Technologies

35,709

7

Tech Mahindra

22,621

8

IBM India

20,442

9

Ingram Micro India

15,823

10

Redington India

14,610

11

Dell India

13,984

12

Oracle India

12,440

13

SAP India

9,896

14

Cisco Systems India

9,740

15

Microsoft India

8,624

16

IGATE

7,879

17

APC by Schneider Electric India

6,848

18

Capgemini India

6,305

19

Intel India

6,292

20

HCL Infosystems

6,270

Source: DQ estimates (Revenue in `crore) for FY15

Gearing Up for the New Normal FY15 proved to be a defining year as ‘old school’ plain vanilla services were just not enough for the new normal economy 134 pages including cover

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VOL XXXIII No 14 I JULY 31, 2015

THE BUSINESS OF INFOTECH

EXACTLY LIKE BEFORE. BUT SOME THINGS LIKE NEVER BEFORE. 15 years of heritage embraces a new identity. The renowned System x servers featuring Intel® Xeon® processors, that have empowered businesses worldwide with a robust IT infrastructure, are now a part of Lenovo.

It’s not just change. It’s evolution.

134 pages including cover

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16 OVERVIEW

Gearing Up for the New Normal As we reflect upon FY15, probably it was the beginning of the end of growth, as we know...

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CONTENTS

Rankings 100

The DQ 20 .................................24-65

The Next 30 ............................. 68-102

The Next 50 ........................... 104-131

Regular Edit ........................................................................................................08 DQ team ................................................................................................10 Last Matter..........................................................................................132

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7

EDIT

Shrikanth G [email protected]

Growth Pangs

T

he year went by was a mixed bag. Growth was muted and challenges aplenty. As we took on to the task of DQ Top 20 this year, as usual, it was a tightrope walking. And so we need to do the balancing act when sizing up the companies numbers and our estimates.

A cursory glance at the events that shaped the year revealed three major pointers. One, most of the companies struggled to sustain the scale they have built over the years. With the contraction of volume of business and sequential growth, adding incremental revenues was not easy. Two, the overall sluggish economy has upset the IT spending cart and what that meant was delayed decision making and that did upset the overall growth. Finally, last year layoffs hit the shores of India, and for the first time one saw agitated laid off employees taking onto streets and even launching a union to fight for their rights. Coming to the DQ 100 listings, as we reflect on the performance of the Top 20, which we call the ‘Top 20 club’ has always hogged the limelight. These are the Ivy League of companies that in a way epitomize Indian IT’s prowess. In this pack, the Top 5 ranking has remained unchanged. In the rest 15 also there were not too many upsets, but here and there we did see some players going down and some climbing up but many had retained their last year’s position. Growth yet again remained a major issue. Meanwhile, the IT distribution companies like Redington and Ingram increasingly de-risked their business by upping their ante in consumer electronics and mobility business and focused more on high yield enterprise business mandates. But as we look at the macro forces, probably the biggest one was the massive expectation on the government, which has promised to significantly escalate the penetration of IT in this part of the world—whether it is eGovernance or smart cities or bridging the digital divide. While FY15 was more about grappling for the times ahead, one also saw the beginning of the impact of disruptive technologies driven by a nexus of technology forces that are changing the very taxonomy of computing. Old school outsourcing models are losing sheen by the day and are on the threshold of obsolescence. Clearly, FY16 is going to be about modernization of enterprise computing with the infusion of emerging tech and how to mesh new with the old and create an ecosystem that fosters growth, ups employee productivity, and secures more profitability. It’s easier said than done, but that’s the only way forward and those who will win in the ongoing fiscal will be the ones who are able to innovate to the new normal.

Shrikanth G Associate Editor

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EDITORIAL

EDITOR AND GROUP EDITOR: Ibrahim Ahmad EXECUTIVE EDITOR: Srikanth RP ASSOCIATE EDITOR: Shrikanth G (Chennai), Shweta Nanda (Pune)

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COVER DESIGN: Pramod S Rawat

ASST EDITOR: Charu Murgai, Ruchika Goel, Prerna Sharma, Jasmine Kohli

EDITOR-AT-LARGE: Ed Nair

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dq Top 100 Rankings

Rank

Rank 2014-15 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 12

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Company TCS Cognizant Technology Solutions Infosys Technologies Wipro Hewlett-Packard India HCL Technologies Tech Mahindra IBM India Ingram Micro India Redington India Dell India Oracle India SAP India Cisco Systems India Microsoft India IGATE APC by Schneider Electric India Capgemini India Intel India HCL Infosystems Lenovo India Savex Computers Mphasis Syntel L&T Infotech Samsung India Acer India Rolta India Mindtree Genpact KPIT Technologies Rashi Peripherals CSC India Vakrangee Cyient Hexaware Technologies Tata Technologies Zensar Technologies Iris Computers Apple India CMC EMC India NIIT Technologies Asus India Compuage Infocom Texas Instruments India Canon India Lycos Internet Supertron Electronics Polaris Consulting & Services

July 31, 2015

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2014-15 Revenues (Rs Cr) 94,648 65,779 53,319 47,318 37,985 35,709 22,621 20,442 15,823 14,610 13,984 12,440 9,896 9,740 8,624 7,879 6,848 6,305 6,292 6,270 6,020 5,905 5,806 5,586 5,480 3,995 3,692 3,679 3,547 3,320 2,990 2,984 2,961 2,775 2,736 2,706 2,644 2,628 2,573 2,560 2,513 2,452 2,373 2,234 2,129 2,110 2,026 1,957 1,948 1,894

Growth% 16 18 6 8 4 14 20 9 12 7 30 9 4 9 19 17 12 15 -2 -24 5 4 -3 7 13 1 2 18 17 6 11 36 3 41 24 14 10 13 36 40 13 15 3 25 -7 9 6 17 24 NA

2013-14 Revenues (Rs Cr) 81,809 55,894 50,133 43,763 36,697 31,200 18,831 18,754 14,128 13,657 10,757 11,437 9,520 8,902 7,224 6,734 6,114 5,483 6,412 8,218 5,740 5,678 5,986 5,210 4,850 3,950 3,602 3,114 3,032 3,138 2,694 2,197 2,875 1,965 2,206 2,367 2,395 2,316 1,893 1,823 2,231 2,126 2,305 1,787 2,275 1,936 1,910 1,673 1,575 NA

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Rank 2014-15 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100

Company Persistent Systems Infinite Computer Solutions Sonata Software Ricoh India Neoteric Infomatique Symantec India ITC Infotech India NetApp India SFO Technologies 3i Infotech Sify Technologies Seagate India CSS Corp Zicom Electronic Security Systems Geometric Epson India Mastek Xerox India Birlasoft NIIT Limited eClerx OnMobile Global AGC Networks Tata Elxsi Intex Technologies TAKE Solutions Adobe Systems India Aurionpro Juniper Networks India Cybage Software R Systems International VMware CORE Education & Technologies D-Link Fujitsu India AMD India Intellect Design Arena Fortune Marketing Trigyn Technologies Accel Frontline LG India Team Computers CA Technologies India RS Software Sasken Communication Technology Zylog Systems Subex Nucleus Software Huawei India SQS India BFSI |

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2014-15 Revenues (Rs Cr) 1,882 1,737 1,682 1,637 1,605 1,534 1,458 1,438 1,370 1,344 1,286 1,210 1,198 1,108 1,106 1,078 1,030 1,010 995 957 942 917 888 853 835 799 796 737 679 670 663 650 628 626 625 610 605 560 493 486 470 452 450 439 428 411 361 353 224 216 www.dqindia.com

Growth% 12 0.30 7 56 7 8 14 12 14 3 23 4 11 20 1 23 13 2 6 1 12 6 14 10 15 -2 15 14 -4 15 6 NA -51 29 19 16 14 10 9 15 23 47 -18 15 -7 -75 5 2 32 10

2013-14 Revenues (Rs Cr) 1,669 1,733 1,566 1,048 1,500 1,420 1,277 1,284 1,200 1,308 1,046 1,163 1,080 926 1,095 880 910 989 939 951 841 865 776 775 726 815 690 649 709 582 627 NA 1,272 487 525 526 533 508 452 421 381 307 550 382 458 1,668 344 346 170 197 July 31, 2015

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13

OVERVIEW

Shrikanth G [email protected]

Gearing Up for the New Normal As we reflect upon FY15, probably it was the beginning of the end of growth, as we know it. In a defining year in which ‘old school’ plain vanilla services is just not enough for the new normal economy 16

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OVERVIEW

“Not only has the basis of computing changed, the basis of competition has changed too” – Andrew S Grove, Former CEO, Intel writes in ‘Only the Paranoid Survive’

T Looking back, the year began on an optimistic note, but the macroeconomic environment deteriorated thereafter —N CHANDRASEKARAN CEO and MD, TCS

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he computing industry—whether hardware or software—is on the cusp of things. Many companies are struggling to make up for the lost growth and revenues as the industry by and large was caught in a disruptive nexus of forces that manifested in an alphabet soup of abbreviations—ranging from IoT to SDN et al. Let’s go the core question: What ails the growth? The answer is not that simple and each company was caught in the sluggish economy trying to retain and sustain its revenues, if not grow impressively. Let’s ask R Chandrasekaran, Executive Vice Chairman, Cognizant India on the state of affairs. He quips, “We are in the midst of a once-in-a-decade shift in the technology landscape. More than ever, clients are grappling with the dual mandate to drive not just better efficiencies, but also greater innovation for the needs of tomorrow. In doing so, clients are reconsidering how they manage their traditional investments in technology and business processes.” “With secular shifts in the economy, business and technology, enterprises are re-examining how they operate, moving from merely incremental levels of performance efficiency to building new digital business capabilities. The only way for businesses to adapt in this new era is to simultaneously improve efficiency and scale with existing systems, while driving business innova-

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tion through newer technologies,” adds Chandrasekaran. In a way Chandrasekaran’s observation puts the year gone by in context and puts the road ahead in perspective. THE FISCAL THAT WAS…

As we look at the fiscal that went by, Q4, FY15 in many ways defined the year. But most of the major players failed to secure any major growth in Q4 and as a result they signed out of overall FY15 on a rather subdued note. But it was not just about top line growth, its more about profitability, operating margins, employee utilization, and redeploying the ‘bench’ force—and these and a whole lot of other parameters did go through a transition leading to what we call a ‘new normal’ scenario and signals the end of traditional outsourcing. The CEOs in most cases accepted this blunt reality. For instance, when Vishal Sikka, CEO & MD of Infosys announced the company’s Q4, FY15 results, clearly his tone drove home the point that it was not business as usual. Reflecting on the numbers he said, “We see the industry going through a fundamental and structural transition.” But what is this transition everyone is talking about? At the fundamental level, the outsourcing industry has worked on the cost and labor arbitrage model. The scale and wage hikes of offshore employees raises the key question for how long outsourcers can arrive at cost savings A CyberMedia Publication

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PRODUCT OF THE YEAR 2015

OVERVIEW

We are in the midst of a once-in-adecade shift in the technology landscape. Clients are grappling with the mandate to drive better efficiencies and greater innovation —R CHANDRASEKARAN Executive Vice Chairman, Cognizant 20

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July 31, 2015

we are seeing. So, in a way, India in IT is slowly losing its sheen as a low cost geography. And outsourcers are increasingly demanding more value and innovation. As we all know, in the last few years one of the most debatable things that’s growing in importance is RoI. The CIOs all these years have been oscillating between the tangible and intangible return on money spent on IT. But increasingly, in the last oneyear or two, what is happening is the emergence of a triumvirate in terms of IT decision making—the CIO-CEO-

CFO—and the degree of influence each have on a major IT deployment. Clearly, the job of the CIO over the last few years became more challenging and complicated and one saw the growing escalation that any IT decision made is more of a stakeholder decision rather than a decision made purely from a technological point of view. The emphasis is more on how the technology can impact the entire business domain, and yet again the age old debate of ‘aligning IT with business’ only got rekindled and got more granular over the year.

Guiding Principles for DQ Top 20 n The company revenues have been taken for the period April 1, 2014 to March 31, 2015. Though different companies have different financial years, we have taken AprilMarch revenue for each company to maintain uniformity. n Revenues of IT services companies include their BPO revenues as well. Even in graphs showing overall revenue share across geographies or verticals, we have included the BPO revenues. n For companies headquartered in India or for companies that had their first delivery center in India, even if they are headquartered outside India, we have taken the entire IT revenue; for companies that do business in India, we have taken the entire India IT revenue; for other non-Indian companies which export out of India, we have taken only the revenue generated by the Indian legal entity. That holds true for captive units as well. n For companies that have filled our form in Indian rupees or those listed in India, we have taken their rupee revenue figures irrespective of the currency exchange rate they have used. For others, we have converted to Indian rupees. n In case of companies that have not provided us with revenues, we have done our own estimates. For domestic business, we have used sources like distributors, channel partners, SIs, customers, and competitors to get unit shipments and average selling value to estimate the revenue. For export services, we have based it on the average headcount and average salary, taking into account factors such as the type of work and type of services. n In case of non-Indian companies that have their development/delivery centers, we have added their India sales revenue to the export revenue and have presented the total figure. n While many companies responded to the questionnaire sent out by us, many others shared information informally over one-on-one interactions. However, there were a few companies that refused to share any information with us; in such cases, information has been gathered and revenues estimated from secondary sources.

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While on one hand, the decisionmaking scenario is changing by the day, and on the other if we look at the technology side of things, FY15 was also the year in which software became the epicenter of things. The ‘Software Defined Anything’ (SDX) is clearly graduating from hype to reality and is an inevitability. Meanwhile, as we look at the IT consumption patterns—the trends point to the movement towards ‘application economy’ in which concepts like DevOps will rule. THE DQ TOP 5

As we look at the top 5 companies in the DQ 100, the top 5 ranks this time have remained unchanged. But

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the biggest upset is the growth. TCS slid to 16% as compared to previous year’s 31%. And similarly, Cognizant’s growth also went south to 18% as compared to 34% in FY14. And Infosys took the major hit with its growth going down to 6% as compared to impressive 30% in FY14. Wipro and HP chipped in with just about 8% and 4% respectively. In a way barring TCS and Cognizant, the rest of the three in the pack have had a tough time growing up their revenues in FY15. But even beyond Top 5, we are seeing the companies struggle to add up incremental revenues YoY and being marred by a weak sequential growth is clearly not a good thing.

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Even for a company like TCS, which has always stayed in the pink of things, FY15 was not an easy one. For instance, N Chandrasekaran, CEO, TCS said in his FY15 earnings call: “Looking back, the year began on an optimistic note, but the macroeconomic environment deteriorated thereafter. In that kind of a muddled scenario, we stayed the course, continuing to make the investments that we believe are needed to build a strong platform for longer-term sustainable growth.” ‘Long-term sustainable growth’— that’s what all the companies did and are doing to tide over the challenges up ahead.

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OVERVIEW

With smart cities development in India becoming a priority, it is vital for the government to strike a balance between resource allocation and investment —NEELAM DHAWAN Country MD, HP India

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Looking at the vertical play of the companies, here too, we are seeing the upsets. For instance, if we look at Wipro, TK Kurien, its CEO and ED said in the FY15 call, “On an overall basis, the demand environment remains stable. However, we see uncertainty in two industry sectors. From a portfolio mix perspective, we have led the energy sector and a sharp cut back in capex in that particular sector impacted us this year close to about $100 mn of revenue compared to FY14.” So repeat business and new client additions and growing in sweet spot verticals is also becoming a major issue. So to offset the vertical upsets, companies need to diversify within and also deepen their play in other emerging verticals so that they will be able to arrive at revenues parity across a whole range of verticals and not just dominating a few ones. Meanwhile, as we look at other companies like HP India, it altogether operates in different dynamics. It competes as well as complements other IT services companies. Neelam Dhawan, VP & GM, Enterprise Group and Country Managing Director, HP India told Dataquest: “HP in India has been successful in FY15 across portfolios. Together the whole HP Enterprise Group is greater than the sum of its parts, with a portfolio comprised of industryleading servers, storage, networking, converged systems and technology services, along with cloud solutions. Adds Rajiv Srivastava, VP & GM, PPS, HP India, “We have achieved comprehensive leadership in both PCs and print in FY15. We have been leaders in the consumer as www.dqindia.com

We see the industry going through a fundamental and structural transition —VISHAL SIKKA CEO & MD, Infosys

well as enterprise segment with the innovative products we introduced in FY15.” OUTLOOK 2016

While FY15 was challenging on many fronts, many analysts believe that FY16 would be a make or break year. While many had given a weak Q1 FY16 outlook, the subsequent three quarters post Q1 will define many things. A CyberMedia Publication

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The DQ 20 RANK

COMPANY

PAGE NO.

RANK

COMPANY

PAGE NO.

1

Tata Consultancy Services

24

11

Dell India

46

2

Cognizant Technology Solutions

26

12

Oracle India

48

3

Infosys Technologies

28

13

SAP India

50

4

Wipro

30

14

Cisco Systems India

52

5

Hewlett-Packard India

32

15

Microsoft India

54

6

HCL Technologies

34

16

IGATE

56

7

Tech Mahindra

38

17

APC by Schneider Electric India

58

8

IBM India

40

18

Capgemini India

60

9

Ingram Micro India

42

19

Intel India

62

10

Redington India

44

20

HCL Infosystems

64

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the dq 20

Rank Rank

0 0 1

Tata Consultancy Services In the backdrop of a challenging business environment, TCS focused on staying relevant and looked at leveraging newer technologies offering bigger growth and larger mandates

2013-14

0 0 1

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—N CHANDRASEKARAN CEO & MD

T

he year went by for TCS can be summed up in two words: ‘Not Bad’. Cross currency fluctuations did upset the cart. As we look

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at the defining Q4 FY15, it did manage to grow its Q4 revenues by 12% YoY but had a muted performance in sequential terms—just about 1.1%. That’s where the challenges come in and in a way define the tough busiA CyberMedia Publication

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ness environment and how difficult it is to scale revenues sequentially in FY15. While the market did not react positively to the company’s numbers, there were many positives in TCS’ performance over FY15. First of all, it was able to add $2 bn in incremental reveneus in FY15 and this when stacked up with rivals was far ahead. For instance, HCL Technologies chipped in $642 mn in incremental revenues for FY15, while Wipro and Infosys garnered just about $462 mn. This benchmark clearly puts TCS ahead of the WITCH (Wipro, Infosys, TCS, Cognizant, and HCL Tech) pack. As we look at other major financial highlights for TCS over the last year, FY15 marks the 10th year since its IPO and during this time it saw its marketcap growing up by 10 times— from $8.8 bn to $80 bn. Interestingly, the board has also approved a broad-based employee cash reward program entailing a total payout of `2,628 crore. As we look at delivery efficiencies and competencies over the year, TCS made significant progress on its cloud platforms, which comprise of its assessment engine, its financial inclusion platform and five horizontal platforms such as HR, financial accounting, accounts payable, procurement, and analytics. The company’s CEO averred in the FY15 earnings call that these seven platforms together have made significant progress and crossed an annual run-rate of $100 mn. These platforms generated a revenue of $125 mn in FY15 at a growth rate of 55% YoY. In a significant announcement at the end of FY15, TCS said that it is ready with the formal launch of its artificial intelligence-based IT and business operation automation plat|

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As we look at FY15, telecom and energy verticals turned out to be a dampener, with Q4 telecom revenues declining by 6.2% and energy declining by 4.7% on a QoQ basis

2014-15

94,648

2013-14

81,809

16%

Source: DQ estimates revenue (`crore)

form. The company terms this as an entirely new category of ‘Service-asa-Software’. Meanwhile, as we look at TCS’ vertical play in constant currency terms during FY15, of the six verticals it has footprints in, the BFSI vertical pitched in with 10.8% growth, but its mostly financial services that grew well and the insurance side did not see mawww.dqindia.com

jor uptick and hovered in single-digit growth rates. Insurance performance was pulled down by degrowth in the Diligenta business. Meanwhile, the company said that the telecom reflected sectorial weakness and the resultant volatility showing up in one geography or the other at varying points. For instance, if we look at Q4 FY15, telecom declined 6.2% and energy declined by 4.7% on a QoQ basis. This in a way explains the weak sequential growth the company had in Q4 of the fiscal. Geography-wise, continental Europe continued to grow well over 25% in constant currency terms. When we look at the scheme of things from a service perspective, the growth was led by infrastructure followed by assurance, enterprise solutions, consulting, and business process services. Cloud platforms have done extremely well, in addition, digital services continued to be on a strong growth trajectory with a good order book. The company’s total headcount stands at 319,656 employees—from a gender diversity point of view, the number of female employees at TCS crossed the 1 lakh mark, making it the country’s biggest employer of women in the private sector. Looking ahead, TCS believes that in FY16, BFSI along with manufacturing, hi-tech, life sciences, healthcare, travel, hospitality, and media and entertainment will do well and telecom and energy verticals will have a subdued play. But from an employee engagement and appraisal perspective, TCS need to up its ante in FY16 as last year one saw laid off TCS workers took to the streets, called their termination unfair, and stated their appraisals were done in an unfair manner. July 31, 2015

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the dq 20

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0 0 2

Cognizant Technology Solutions While growth slowed down, Cognizant effectively synergized its competencies and delivery capabilities with strategic inorganic forays

—FRANCISCO D’SOUZA CEO

2013-14

0 0 2

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L

ooking at Cognizant’s performance in FY15, if we were to pick threads, the key ones that stand out relate to the significant slide

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in its growth which came down to 18% from the last year’s massive 34%. The slowing down of the growth is the reflection of the wider trends and the overall sluggish demand scenario. Notwithstanding, A CyberMedia Publication

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an 18% growth in itself is indeed impressive. Let’s look at how verticals panned out for the company in FY15. In Q4 FY15, its BFSI revenues grew 3.6% sequentially and 13.4% YoY, driven primarily by continued strong growth in its insurance practice. What drove Cognizant’s revenues in the BFSI space related to client engagements on cost optimization and vendor consolidation, regulatory compliance, and cybersecurity. In addition, Cognizant saw an increased focus on newer technologies in digital and automation, particularly in areas to improve customer experience and drive digital customer self-service. During the same quarter, its healthcare segment, which consists primarily of its payer, pharmaceutical, biotech, and medical device clients, grew 13.8% sequentially and 42.7% YoY. However, its payer clients continued to take a cautious approach to spending. Cost optimization is still a key driver, while clients are also looking to leverage analytics to drive profitability and improve customer retention. The company says that the payer sector is undergoing fundamental changes, driven by a changing regulatory environment, increasing focus on medical costs, and the consumerization of healthcare. The company believes these changes create longer-term opportunities. Q4 also assumed significance for Cognizant as it further synergized its TriZetto acquisition and went to market with combined offerings. To further leverage this asset, Cognizant moved aggressively to increase staffing. It added 500 consultants, who are either already deployed—or trained and ready to deploy—to assist in driving revenue synergies. In addition, the company added 300 |

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With a multipronged client engagement model and with a blended strategy of traditional VS new service delivery, Cognizant managed yet another good year

2014-15

65,779

2013-14

55,894

18%

Source: DQ estimates revenue (`crore)

people in its global delivery centers to accelerate product development on TriZetto platforms. The company says that this action is already paying off. In the Q4 alone, Cognizant was selected for synergy deals with a total contract value of $200 mn, with a number of additional deals in its pipeline. Meanwhile, in the pharmaceutical www.dqindia.com

business, it continued to see a trend towards multi-service deals across infrastructure and IT services, leveraging cloud technologies and platforms. Additionally, the company is seeing a steady demand driven by vendor consolidation and cost optimization across many existing and new clients. The company saw good traction from its acquisition of Cadient, where it added nine new logos since closing the acquisition late last year. Looking at other verticals, Cognizant in its retail and manufacturing segment secured a growth of 2.7% sequentially and 7.2% YoY in Q4 FY15. Here it saw good demand particularly in the areas of modernizing supply chains as well as digital and eCommerce engagements. For a large retailer in Southeast Asia, Cognizant is in the process of implementing a digital eCommerce platform to deliver a seamless omni-channel shopping experience for their customers. As we look at the year went by, Cognizant says that it was able to balance out its traditional service offerings more broadly and at the same time driving demand for integrated, multi-service deals—solutions that typically include a combination of consulting, IT services, BPS, and infrastructure services, while also exploring new frontiers of cost and operating efficiency through new asa-service utility or platform-based models. This helped the company create variable cost structures, enhance efficiency, and drive agility and time-to-market. This trend, the company says, is creating significant opportunities for services firms such as Cognizant that have the right portfolio and hence are able to create a multi-tower engagement model. July 31, 2015

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Infosys Technologies Infosys’ performance in FY15 was reflective of the overall grim mood of the Indian IT services industry that was plagued by currency fluctuations and pricing pressures —VISHAL SIKKA CEO

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nfosys, the IT behemoth, over the year aimed to get industry leading growth rates back but failed to do much, especially due to a disappointing fourth quarter. Performance fell below

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expectations as the company posted a modest 6% hike in revenues in FY15 as compared to the previous fiscal. It attributed the fall to increasing pricing pressures and grim services growth in the last quarter. A CyberMedia Publication

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The decline was visible across geographies as both Americas and India market got hit in Q4. Across verticals, banking, financial services, and insurance still held the lion’s share in revenues contributing 33.6% in FY15. This was followed by manufacturing that accounted for about 24%. Amid geographies, the US and Canada held about 63% of the total revenues. On the whole, it was a milestone year for the company as it went through some transformational changes. It bid farewell to three of its founders, Narayana Murthy, S Gopalakrishnan, and SD Shibulal. The company got its first nonfounder CEO, as Vishal Sikka took over the reins in August. Since his arrival, Infosys has been witnessing some key structural changes aimed to instill fresh life into the IT company that has been struggling on many fronts over the last few years. In line with the renew and new strategy, the company has been making moves in many directions which industry experts suggest will deliver fruits in the future. The IT services provider has upped its focus on automation, Artificial Intelligence (AI) and cloud-based IT services and has been actively investing on these fronts. The company made a slew of acquisitions over the last few months. Its big ticket acquisition of Panaya, an automation company, has been a significant step in line with its new strategy. Industry analysts suggest that Panaya will help enhance Infosys’ strength in automation and artificial intelligence and will also expand its presence in Israel. The IT services major also recently announced the acquisition of Kallidus, a San Francisco-based dig|

A CyberMedia Publication

The target of $20 bn by 2020 will be a longterm project and at this point is more of an aspiration, yet industry experts are CONfiDENt tHAt the leadership is making the right moves

2014-15

53,319

2013-14

50,133

6%

Source: DQ estimates revenue (`crore)

ital and mobile commerce solutions company for a sum of about `760 crore. Additionally, it has acquired a minority stake in air quality monitoring start-up, Airviz. During the year, Infosys managed to strike some big deals. In total, it added 221 new clients in FY15. The most prominent one was the multi-million dollar IT services deal it www.dqindia.com

signed with ABN AMRO. As a part of the deal, Infosys will provide services across application development and maintenance, testing, and product implementation. Another significant win was the 11-year deal with Western Union Financial Services where the IT services company will take complete ownership to modernize, maintain, and support its worldwide settlement systems. The year also saw the company driving a slew of employee-related initiatives. It established a design thinking training course for new joiners at the Infosys Global Education Center in Mysore. More than 22,000 trainees are expected to undergo this training in FY16. It has also established a SWAT team to simplify processes, empower its employees, and eliminate bureaucracy. The company believes that these employee engagement initiatives have helped in bringing down attrition significantly with employee exits coming down from 1,768 in January, 2015 to 1,352 in March, 2015. Infosys also won the 2014 Asia Pacific HRM Congress award for diversity and HR. The company has given a revenue guidance between 10-12% for FY16 in constant currency terms. Going ahead, Infosys is optimistic that the investments into new areas and renewed focus on traditional IT services will pay off and it will be able to achieve industry leading growth rate by FY17. To attain that the IT services company will be pursuing fresh opportunities around automation and will continue to invest in big data analytics, and emerging mobile and digital technologies. The aspirational target of ‘$20 bn by 2020’ looks like a distant dream as of now. July 31, 2015

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Wipro With its oil and gas sector performance suffering a bit in FY15, Wipro managed to drive a positive top line growth, but continued to lag behind the industry average

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—TK KURIEN CEO

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s the IT services industry went through yet another difficult year, Wipro continued with its struggle to get its perform-

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ance back on track. Overall, it was a mixed performance from Wipro as the company inched forward with a humble 8% growth in FY15 over the last fiscal. The IT services segment, which forms the lion’s share of A CyberMedia Publication

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its business, saw a 10% increase in revenues in FY15, while this was partially offset by a 12% decline in its IT products business. Wipro has been consistently reducing the proportion of IT products business, which now holds only about 7% of the total revenues. During the year, the company continued to face challenges in certain business areas, especially in the oil and gas segment, that dragged down growth below analyst expectations and the industry average. Wipro has higher exposure in this vertical as compared to its closest peers like TCS and HCL. The fall in the global energy prices hence impacted the company’s performance in the fourth quarter. Verticals like manufacturing and healthcare performed relatively better during the year. The company’s infrastructure services segment showed good momentum. Some large deal wins brought in good news for Wipro in FY15. The IT services major added 194 new clients in the IT services segment. The major highlight was the billion dollar outsourcing deal it struck with ATCO, the Canadian utilities and logistics company, which was also the biggest deal in its history. In the process, it also acquired the IT services business of the company. Global IT research companies like Nelson Hall believe that the deal will help revive its energy and utilities business to a large extent. It is also expected to expand its presence in the Canadian market. Other prominent deals included the one with power and automation technologies major ABB, and a five-year deal with Levi Strauss. The company also acquired minority stake in Drivestream, a US-based Oracle cloud applications systems integrator. |

A CyberMedia Publication

The formation of new business unit, Wipro Digital REflECTS ON THE COMPANY’S GROWING FOCUS around new TECHNOLOGIES AND WILL BE A KEY to expanding market share in the future

2014-15

47,318

2013-14

43,763

8%

Source: DQ estimates revenue (`crore) *Revenue is aggregate revenue for the purpose of segment reporting including the impact of exchange rate fluctuations

In line with the changing demands of next-generation IT services, Wipro has been pumping in funds in intellectual property to develop automated IT solutions, self-healing tools and artificial intelligence engines that can be deployed for customers. It invested in ServiceNXT, a next generation integrated managed services www.dqindia.com

framework that is aimed to improve productivity in infrastructure management and application management contracts. Towards the end of the fourth quarter, the company appointed Abid Ali Neemuchwala as the Group President and Chief Operating Officer. Abid will be heading the service lines of Global Infrastructure Services, Business Application Services, Business Process Services, and Advanced Technology Solutions. In an interesting turn of events, Rishad Premji, the elder son of Wipro promoter Azim Premji, was appointed to the company’s board of directors. Wipro like its close rival Infosys has been taking up restructuring initiatives to revive its business. To capture the growing opportunities in the digital space and to strengthen its focus around it, the company has carved out a separate unit called Wipro Digital. The new unit will be mainly focused on banking, manufacturing, healthcare, and CPG (Consumer Packaged Goods). Wipro will be aiming investments in new technology areas like automation and Artificial Intelligence (AI), to keep pace amid intensifying competition in the IT services space. Digital will continue to be a strong focus area and the new business unit will be a key to drive fresh opportunities. The company will also be focusing on strengthening its delivery model and will invest in its customer relationship teams to deepen client relationships. Going ahead, the IT services provider will be looking at gradually moving towards a non-linear business model, delinking revenues to headcounts. The ServiceNXT investment was a significant step taken in that direction. July 31, 2015

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Hewlett-Packard India From a storage perspective, flash is going mainstream, and this equates to incredible opportunities for HP and its channel partners

—NEELAM DHAWAN VP & GM, Enterprise Group and Country MD

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he biggest event for HP globally in 2014 was the company splitting into two separate entities—HP Enterprise and HP Inc. HP Enter-

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prise takes on to next-gen tech, infrastructure, software, and services— basically the ‘new style of IT’ that HP has been evangelizing for the last couple of years. Meanwhile, HP Inc will take on to hardware and periphA CyberMedia Publication

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erals portfolio consisting of personal systems and printing. But is this separation really going to help HP? When we stack it with arch rivals like IBM, which had shed almost all of its low margin hardware baggage, morphing into a software and services company, HP still is an amalgamation of software and hardware and whole lot of inorganic assets which it picked in the last decade or so. Given the complexities, assets and liabilities in its portfolio, how is HP going to seamlessly synergize all these? And how will it be able to create a complex interplay of devices, software and services, and yet expand profitability and margins? HP’s EVP and CFO Cathie Lesjak reflecting on the separation said, “The strategy remains the same. The tactic of splitting the company is one that is right for this time, given the market forces that we’re experiencing.” The key question: Will HP be able to capitalize on these market forces? HP strongly believes that the separation will accelerate the progress it has made over the last three years and will enable it to continue to deliver on its commitment to delivering solutions to customers and increasing value for employees, shareholders, and the community. HP without a doubt is a behemoth and has a huge IT arsenal. In many ways, it’s the sum of parts with each division in itself a company with massive top line and P&Ls. But with the company breaking into two, the immediate question that came on was how is HP going to manage client engagements, relationship with channels, and synergies between these two entities and the cross-sell between the two? For one, on the partner front, HP says its ‘Partner Navigator Program’, has been designed to help HP part|

A CyberMedia Publication

HP believes that bifurcating into two entities will provide each new company with independence AnD flExIBILIty, At the same time generating longterm value for shareholders

2014-15

37,985

2013-14

36,697

4%

Source: DQ estimates revenue (`crore)

ners go through its separation into two companies, while additional programs, including the Partner One Alliance, are designed to help partners drive positive business outcomes for their customers. These programs are also expected to help the distributors and the reseller network to maintain business continuity through the separation. www.dqindia.com

While much has been written about the challenges HP will face going forward, let’s here stick to HP India and take a due diligence on its FY15 performance in this part of the world. Overall, HP in India has been successful in FY15 across portfolios— hardware including PCs, laptops, printers, servers, storage and networking to software including cloud, big data, security and mobility and finally, services. While HP’s worldwide server revenue grew 10% in CYQ1, 2015, and enabled HP to secure the top spot with 24% market share, HP also maintained its leadership in server shipments with 20% share. In tandem, HP’s server momentum in India too saw good traction. Storage and networking did see good uptick in India. For instance, India is a key market for HP storage, with growth rates higher than worldwide and the Asia Pacific-Japan region overall. The largest segment in the Indian storage market is the midrange. HP 3PAR StoreServ Storage and HP StoreOnce Backup saw very impressive traction. Meanwhile, HP says that it has achieved comprehensive leadership in both PCs and printing in FY15, with good play in both consumer as well as enterprise segment with the innovative products. So as we look ahead, FY16 will be a defining year for HP globally and despite the challenges galore, HP’s huge portfolio offers it immense opportunities in the emerging markets. HP in the coming year is also expected to aggressively tap into the smart city opportunity. To this end, the HP Future Cities team will be working closely with the government to provide big data, cloud, mobility, and security solutions. July 31, 2015

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HCL Technologies HCL Technologies looks at a rough road ahead as its growth has come down significantly, primarily because it failed to woo new customers amid rising competition

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—ANANT GUPTA CEO

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CL Technologies failed to continue its growth story in FY15, witnessing a sharp dip in its growth rate against

the previous year. While it grew at 31% in FY14, its growth fell to merely 14% this fiscal. It might be regarded as a modest growth but the problem becomes apparent when we look at the last two quarters in which the comA CyberMedia Publication

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Rank Rank pany registered marginal degrowth. The company is going through growth challenges in its traditional markets. HCL Technologies did not impress in the US region but it claimed that it has bagged transformational deals worth $1 bn. The company gained these deals from industries such as consumer services, manufacturing, and public services in the European region. While HCL claims a robust pipeline, it is struggling to grow worldwide. Its profits have also dipped and reduced with the experts downplaying its potential in the next one year. Even Shiv Nadar Foundation sold its entire 0.79% stake in HCL Technologies for `1,108.9 crore in the open market to comply with regulations and the funds would be used to realize various initiatives this year. HCL Technologies has been strong in infrastructure management services which constitute a major portion of its revenues. Even the transformational deals it bagged are related to infrastructure services. It is believed that HCL Technologies is not able to stand out in the IMS space because of the rising competition. When looking at the verticals, financial services and manufacturing contributed most to its growth. In the last quarter, the company swelled its client portfolio as $50 mn+ clients increased from 1 to 17, $30 mn+ clients rose by 1, and $20 mn+ clients jumped by 4. In addition, the company added 3,944 employees during the quarter, taking the total headcount to 104,184 globally. The company is flexing its technology muscle as it continues to put money in expansion and developing IP. The company expanded its facilities globally, creating over 30,000 seats across various campuses in 36

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July 31, 2015

HCL continues to invest in expansion and developing IP, as well as is eyeing big opportunities in emerging trends such as IoT and M2M

2014-15

35,709

2013-14

31,200

14%

Source: DQ estimates revenue (`crore)

Noida, Bengaluru, and Chennai. It is trying to leverage different tech trends globally but has not got major breakthroughs which could yield positive results. The company formed alliances to deliver solutions innovatively to its clients. HCL Technologies and Aegon launched cXstudio for customer-centric digital channel innovation which www.dqindia.com

was aimed at delivering customer experience excellence through the adoption of the latest digital technologies. In addition, HCL is eyeing big opportunities in areas such as Internet of Things (IoT)/ Machine-to-Machine (M2M), which has begun to create buzz in all the markets globally. Since European market is bullish about IoT, HCL partnered with Tele2 to address the substantial market opportunities. By focusing on the healthcare segment in Europe, the two companies will jointly address one of the fastest growing areas of the M2M/IoT market. HCL has been a dominant player for the life sciences and medical devices segment for North America. Its clientele consists of the top global pharmaceutical companies, medical devices companies, health plans, CROs, and data providers. The company recently celebrated its 10-year long relationship with Merck & Co., which is a healthcare company. HCL has been delivering a whole range of services including transformational software led IT solutions, infrastructure management, business, and knowledge process services to the customers in this sector. On a positive note, attrition rate in IT services has been consistently dropping over the last 12 months. However, in the last quarter, attrition at business services segment jumped to 8.3% from 6.7% on sequential basis and 5.8% on yearly basis. Blended utilization stood at 81.9% in March quarter against 82.9% in December quarter and 84.2% in the year-ago period. Looking ahead, HCL Technologies is focusing on strengthening its position in the emerging markets to drive growth. A CyberMedia Publication

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Tech Mahindra The company’s Q4 FY15 numbers were impacted by unfavorable macroeconomic headwinds, but despite that, it had a fair run. The US remains its biggest play

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—CP GURNANI MD & CEO

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iscal 2014 saw Tech Mahindra seamlessly synergizing the competencies out of Mahindra Satyam, and in the bargain it became

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an end-to-end player with footprints across IT, BPO, and telecom. But as it marched through FY15, the growth toned down. While the company saw good traction in the first 9 months of FY15, things softened in Q4 and by A CyberMedia Publication

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the end of March 2015, the company signed out with a reasonable 20% growth—far ahead of most of its competitors. Let’s take a closer look at Q4 2015, for this quarter the company posted a revenue of `6,117 crore. Vineet Nayyar, the company’s Vice Chairman accepted during the earnings call that Q4 has been soft with the results being influenced by slow decision making with some of its key customers in terms of transformative initiatives. Clearly, the slowdown in the macro-economic conditions has had an impact not only on Tech Mahindra but across the industry. That said, going by the posted Q4 revenues, statistically the company grew its revenues by 6.4% QoQ and its only the organic business that has shown a small degrowth. But Q4 dip also has some company specific reasons as well. For instance, the company’s salary hikes come in this quarter, this is not the case with other IT companies by and large. That apart, Tech Mahindra has an aggressive play in Europe, Canada, Australia, and New Zealand. And looking at FY15, these are the regions which went through a volatile currency fluctuations and saw a huge fall in the currency value. So clearly, these two major events slowed down the company’s run in Q4. In a significant development in Q4 FY15, the company acquired SOFGEN, a niche consulting and services company with worldwide presence specializing in private/ wealth, commercial and retail banking solutions. SOFGEN has 450+ employees with 20+ tier-1 client relationships, delivering solutions ‘in and around’ core banking. With this acquisition, Tech Mahindra gained competencies and capabilities |

A CyberMedia Publication

Despite the blip, the company grew ahead of the industry. It is aggressively foraying into new technology and business areas through niche platforms and focus on productization for non-linear growth

2014-15

22,621

2013-14

18,831

20%

Source: DQ estimates revenue (`crore)

to offer a unique combination of ‘change the bank and run the bank’ services to retail banking, private banking, and wealth management customers globally. Yet another significant buy in Q3 of the fiscal relates to the company signing a definitive agreement to acquire global network services leader Lightbridge Communications Corpowww.dqindia.com

ration (LCC). Through this acquisition, Tech Mahindra has transformed into one of the largest and most comprehensive providers of technology services to Communications Service Providers (CSP). If we look at other business highlights, Tech Mahindra and IBM entered into a strategic agreement to build a platform for the development of cloud-based applications. This collaboration will see the company building cloud-native and cloudenabled applications with a scalable model to develop applications for predictive analytics for clients in the automotive and manufacturing industry. As we look beyond the numbers, over the years the company deepened its partnerships with its key customers. The company’s active client base grew to 767, out of these 87 clients have come through LCC and SOFGEN. The company also signed a few large deals in the enterprise space. Despite the headwinds in the later part of the fiscal what has helped Tech Mahindra was its strategic inorganic investments that’s helping it face the adverse economic conditions and delayed decision making cycles and slower IT spend. The company is also pursuing its aggressive focus on productization for linear growth, and at the same time wants to create an environment for IP development and leveraging maximum value out of its customer relationships. Looking ahead, the company is expected to go ahead with its multipronged strategy aimed at improving the overall utilization rates and further synergize its inorganic assets and ramp up its competencies.

July 31, 2015

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IBM India IBM is in the midst of a transformation and if we look at India per se, the revenues in FY16 depend on the ability to clinch large multi-year, multi-million strategic outsourcing deals

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—VANITHA NARAYANAN MD

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he writing is clear on the wall that IBM globally is morphing into a software and services company, now that it had shed most

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of its liable hardware assets. Even as it does this transformation, IBM is differentiating itself in hardware through systems like Watson, new generation systems like Z13, and other datacenter technologies. The A CyberMedia Publication

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Ingram Micro India Ingram in India aggressively pursued on large enterprise mandates and forged closer collaboration with key vendors

—K JAISHANKAR MD

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ngram Micro in India had a good year despite the IT distribution industry being mired by oppressive tax regulations in this part of the world. What drove Ingram Micro India’s

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revenues was the strong enterprise sales and good growth in the handsets portfolio. Of all the emerging markets, India is demonstrating bigger traction and if we look at the company’s global revenues, for A CyberMedia Publication

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CY2014, it posted $46.5 bn globally and 61% of its global revenues have come from outside the US with APAC countries demonstrating impressive traction. If we further drill down, India is one key growth country for Ingram and is positively impacting its global revenues. Since FY14, Ingram is globally making a conscious attempt to re-innovate itself in the distribution space. At the end of FY14, it embarked on a new brand identity in sync with the times. If one looks at FY15, clearly it connected the new brand identity with the vendors and channel partners and projected itself as an agile distribution shop to be able to embrace the wide ranging technology disruptions and emerging opportunities—starting from core IT opportunities to smartphones, tablets, and non-IT products, and training. For instance, its aggressive foray into the education sector amply demonstrates how Ingram is looking at verticalized services and offering specific solutions for specific verticals like IT training. For instance, through the Ingram Micro Education Services (IMES), the company delivers education services specially designed and crafted by specialists to meet the customers’ needs. The company has ambitious plans on becoming one of the top commercial education centers in India. To this end, Ingram Micro has invested resources and efforts to make sure all the classrooms and labs are fully equipped; trainers are professional and well-trained to deliver top quality courses; and service staff is fully trained with substantial product knowledge to serve the customers at all levels. IMES aspires to maintain the quality and prestige by delivering most |

A CyberMedia Publication

With IT distribution becoming extremely challenging, Ingram was able to post robust growth due to its ability to leverage predictive analytics, leading to bigger business outcomes

2014-15

15,823

2013-14

14,128

12%

Source: DQ estimates revenue (`crore)

pleasant and productive learning experience. It represents Microsoft, Symantec, Red Hat, Eucalyptus, IBM, and Fortinet as authorized training partners. It is also planning to start a testing center soon. With this, the company is looking at broad basing the availability of skilled technology personnel and looking at meeting the requirements of organizations, which www.dqindia.com

are increasingly dependent on highly skilled IT professionals to improve efficiency and reduce costs. Here IMES’ goal is to provide support with robust technical training courses and hands-on labs. Information available suggests that its trainings recognize and reward real-world skills to help its customers gain a competitive advantage in the market place. If we look at the business strategies of distribution companies, since the last few years, they have been adopting a multi-pronged strategy to de-risk themselves from the intricate complexities that govern distribution in this part of the world. So in the last few years, distribution companies like Ingram and Redington have morphed into an end-to-end SCM player, with a portfolio that included electronics and white goods as well. In the nonIT space it’s majorly smartphones that is giving in good revenue yield. While Ingram has a huge portfolio cutting across software, security to consumer electronics segments, let’s look at some significant updates over the last year. Ingram collaborated with Dell and launched ‘Dell Storm,’ an outreach program that encompasses 117 tier-2 and -3 cities in India. Dell with this program effectively leveraged the extensive Ingram channel ecosystem and thereby Dell’s offerings became one key product in Ingram’s portfolio. Looking ahead, with India becoming a key geography for Ingram, the company is clearly adopting a customized roadmap. What puts Ingram in an advantageous position is its expertise in giving significant value to vendors and resellers. In this regard, Ingram’s Business Intelligence Center (BIC) plays a critical role in creating a seamless positioning of a wide ranging products. July 31, 2015

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Redington India The one ask of all distribution players would be to make it easy to conduct business without being at the mercy of interpretation of various statutory regulations

—(FROM L-R) EH KASTURI RANGAN, Jt .COO and PS NEOGI, Jt.COO

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T distribution is a business that’s known for its wafer-thin margins. It’s majorly a bi-polar world with Ingram and Redington locking horns. As we take the audit of the year went by

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and look at Redington per se, the first thing we notice is the modest growth. But going by the challenging FY15, one needs to say it was a good performance by Redington. The company terms that FY15 A CyberMedia Publication

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was an unusually challenging year. This was because with the change in government at the center, everybody expected—unreasonably, if we may now say so—immediate results and a dramatic improvement in the business environment. Obviously, that did not happen. The factors that put the brakes on growth were the ones like liquidity that remained tight and put the pressure on the funds rotation of Redington’s channel partners and that had consequences on its rotation. The interest rates also remained high, maintaining pressure on margins. Moreover, the ecosystem was disturbed due to explosion in the business being diverted to the eCommerce sites and this took time to play itself out. Overall, while there were growth opportunities in pockets, which have allowed Redington to show a reasonable growth as an organization, broad based opportunities were limited. Given this, Redington tried to make the best of the situation. If we take up a close view of Redington’s performance over the year, it saw good traction in the overall consumer segment helped by the market-share gains by HP and Lenovo. It secured high growth in the overall Apple portfolio as well. Good revenue opportunities in the software, security, and enterprise storage space and steady opportunities in the SMB segment helped it achieve this modest growth. So what kind of strategy Redington adopted over the year? It took on to a multi-pronged strategy and started offering solutions in the storage, security, and video/audio space with a few key vendors. It formulated and initiated its cloud strategy, which encompassed an integrated, vendor |

A CyberMedia Publication

With challenging business dynamics, Redington adopted a multi-pronged strategy, took on high opportunity areas, and consolidated its portfolio

2014-15

14,610

2013-14

13,657

7%

Source: DQ estimates revenue (`crore)

agnostic, partner-centric, servicesbased approach. The elements were put in place last year and the company would start offering a cloud portfolio to its partners from the second half of this fiscal. Meanwhile, ProConnect, its SCM arm geared up for value-added, comprehensive supply chain solutions and this helped it attract many 3PL www.dqindia.com

customers across different industry verticals. Redington also concentrated on consolidating its portfolio and added a very few vendors over the year like: Smart Enterprise, Ubiquity, Capsdase, Barracuda, Belkin, Philips, and Vaultize. Meanwhile, its Apple Mac business saw good uptick and had good traction in iPhones as well. On the smartphones side, the company is planning to induct domestic brands on to its portfolio. Right now Redington does Apple and BlackBerry smartphones; with addition of Indian brands it is looking at the volume market in FY16, and that’s a good business strategy. As one looks ahead at FY16, Redington is expected to enhance customer focus through restructured and integrated business groups. It has also prioritized to implement its cloud strategy and will increase its cloud offerings. Moreover, with vendors like HP bifurcating on hardware and software into two independent entities is expected to create more focused opportunities for distributors and channel partners. But cash crunch and flow would be one big challenge for distributors and they need to manage it judiciously. The realignment of business in an integrated fashion across consumer, commercial, cloud et al is also expected to deepen its mandates and in all FY16 looks like a far better year for Redington as compared to FY15. However, much also depends on the technology refresh cycles in FY16 and it’s the emerging tech areas that offer bigger scope for Redington moving forward. The company’s aggressive strategy on emerging tech is expected to usher in good growth in FY16. July 31, 2015

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Dell India Great year for Dell India as the company clocks a robust top line growth of 30% in FY15, with renewed vigour, post privatization

—ALOK OHRIE President and MD

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early 1.5 years since Dell made its transition from a public to private company, the transformational journey

continues as the traditional hardware company tries to solidify its position as an end-to-end player in the changing IT market. The move seems to have turned out to be fruitful as the PC major puts up an impressive A CyberMedia Publication

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show across all business segments, clocking a massive 30% growth in FY15 over the previous fiscal. Post privatization, strategies were realigned, internal organization was restructured in line with the new objectives, and a bolder roadmap was laid out. The performance in the last one year throws enough evidence that the decisions are paying off well. The fact that the company is no longer under the constant glare of Wall Street and doesn’t have to think about meeting short-term investor expectations has shifted focus on long-term performance globally and has instilled fresh confidence in the leadership team to make some bold moves. In FY15, the company has stayed focused on acquiring new capabilities, reorganizing backend operations, and optimizing its supply chain. Privatization has brought in the much needed flexibility that is crucial in doing so. At the heart of Dell’s ongoing transformation lies its new go-to-market strategy which was initiated in early 2014. This has helped the company in significantly expanding its market coverage, geographic reach, and partner ecosystem. In India, while the customers have grown by 25%, the number of partners has gone up by over 100%. While it is aggressively chasing its enterprise objective, the company remains pretty focused on its PC business. India still holds immense potential for PCs as is evident from the 7.5% revenue growth in the Dell CSB (Consumer and Small Business) segment in 2014, which is the highest ever annual share gain in the India CSB segment. As per IDC estimates for Q4 2014, Dell was ranked #2 in the overall PC market with a ship|

A CyberMedia Publication

Dell’s end-toend game plan will require the traditional hardware company to make selective choices across its different segments

2014-15

13,984

2013-14

10,757

30%

Source: DQ estimates revenue (`crore)

ment share of about 25%. In the software space, the company’s acquisitions have helped it build a strong portfolio including information management, data protection, and security. The Enterprise Solutions Group (ESG) did well with the servers, storage, and networking segments gaining momentum. In India, Dell curwww.dqindia.com

rently has 23% unit shipment share of x86 servers as per the Q4 2014 results from IDC. Globally, it continues to see a surge in revenues in the server space and is inching closer to big rivals like HP. Demand from new age eCommerce and start-up companies was a key factor in driving growth in this space. Being relatively new, Dell storage segment also showed impressive growth signs. The company is placing bets especially in the hybrid flash storage space. In Q4 2014, it held about 8% market share and was ranked #5, as per IDC. To enhance its strength in the services space, Dell is pumping in investments into areas like digital mobility and cloud-based services. The company is seeing strong traction in the Indian market for application services and is primarily focused on verticals, including healthcare, manufacturing, and retail. In FY15, Dell also had significant deal wins in India, prominent one was a deal with Flipkart, where the eCommerce company deployed Dell’s PowerEdge Servers. India holds a key position in Dell’s future growth strategy. It is now the fastest-growing market for the company globally and is the third largest market after the US and China. Going ahead, India R&D will play a crucial role in Dell’s enterprise strategy. The company will also be looking at expanding its presence in tier-3 and -5 cities and further strengthening its network of channel partners in India. FY16 is likely to be an interesting year for Dell as it will throw more light into the company’s future strategy and the different choices it will make to ensure success of its end-to-end game plan. July 31, 2015

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47

the dq 20

Rank Rank

0 1 2

Oracle India Oracle India’s growth in FY15 was largely driven by its aggressive cloud strategy of roping in new customers and strengthening its presence among all kinds of businesses

2013-14

0 1 1

48

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July 31, 2015

—SHAILENDER KUMAR MD

A

lthough a late entrant in the cloud journey, Oracle has made considerable strides and acquired a good number of customers

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in India. Driven by its cloud strategy, Oracle was able to grow as much as 9% in India in FY15. Interestingly, the company is inching forward to become a $2 bn company in India. Its cloud move has begun to pay diviA CyberMedia Publication

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dends as it has acquired a number of new customers in India. Earlier this year, the company announced that it has acquired 50% net new customers for cloud alone whereas others are its existing. Oracle’s cloud strategy is aligned with its core business as it offers cloud capabilities to its customers for the same applications hosted on premise. It is a profitable move since the license revenues are expected to shrink in the future. Given the demand for cloud in the Indian market, Oracle endeavored to change its perception among the SMEs and was able to hook in good number of growing customers. According to Oracle, SMEs are one of the biggest focus areas for its cloud business in India. To strengthen its presence among all kinds of businesses (large and SMEs), the company decided to add 300 professionals to its existing workforce of 31,000 employees in India. The move is aimed at enabling Oracle to strengthen its cloud footprint. In its traditional positioning, the company had a modest growth from enterprise software licenses. However, it continues to be a dominant player in the database business as it continues to rule the RDBMS market with 63% market share. The company has witnessed modest growth for most of its enterprise applications such as ERP, CRM, PeopleSoft, etc. But the ringside view explains that Oracle had barely changed its business strategy which is centered around Exadata machines. Definitely the software vendor found many takers for the engineered systems in India. Globally, it has crossed 10,000 numbers for engineered systems. But more than its engineered systems, the company witnessed growth in its server business. After Cisco, which witnessed solid growth for its USC |

A CyberMedia Publication

Oracle hired 300plus sales professionals during the fiSCAL TO increase its cloud footprint and deepen existing client relationship

2014-15

12,440

2013-14

11,437

9%

Source: DQ estimates revenue (`crore)

servers globally, Oracle was the only vendor whose server business grew. The company reported significant customer wins from all verticals and claimed that it acquired a number of customers from its competitors. Verticals like IT/ITeS, telecom, banking, and automobile industry, among others fared good for the company. Among the customers it bagged in www.dqindia.com

FY15 include Airtel Learning, Apollo Hospitals, Jabong.com, Intel, Aditya Birla Management Company, Maruti Motors, Hero MotoCorp, BigTree Entertainment, Sonata Software, Myntra. com, Kalpataru, NetApp India, Adobe Systems, Haier, Thomas Cook, Nature’s Feast, Sudhir Gensets, etc. Oracle saw little uptake in the government sector as most of the state governments in India went through a planning phase. However, the company executed some big projects in different states. One of the biggest projects was done with the Ministry of Defense. The company had to undergo leadership crises last year when its India Managing Director Sandeep Mathur stepped down all of a sudden. It was rumored that he had bribed a few customers. But the company never laid the facts out. Mathur was soon replaced with Shailender Kumar. Kumar is putting his energy to enhance the company’s cloud presence in the country while regaining customer confidence from all verticals. Oracle India is the only organization outside Oracle’s headquarters in California to represent all divisions including sales, marketing, consulting and education operations for the domestic market, global product development, global consulting, support to global customers, sales (over the Internet), and global financial accounting analysis. The company has more than 7,000+ customers across technology and applications which it caters to directly and through 1,000+ partners. Oracle’s services business is estimated to account for 47% of its total revenues in India, while its technology (including databases) business contributes 29%. Systems, applications, and middleware account for the remaining business revenue. July 31, 2015

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49

the dq 20

RAnk RAnk

0 1 3

SAP India SAP needs to address the leadership crises it has been facing for some time to steer the company forward and increase its footprint in different verticals

2013-14

0 1 4

50

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July 31, 2015

—DEB DEEP SENGUPTA MD

W

www.dqindia.com

ith a modest growth of 4%, the year was certainly a mixed bag for SAP. In FY15,

SAP centered its strategy around cloud and HANA which began to see some momentum. However, the momentum was more from the mid-size firms rather than the large enterprises. With large enterprises also warming A CyberMedia Publication

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to cloud, the company is hopeful of reaping great dividends in the coming years. That said, SAP’s sweet spot has been its enterprise applications business since ERP, CRM, BI, and SCM account for a larger portion of its business in India. The company still leads the ERP market in India with a considerable market share. Similarly, in other areas such as CRM, SCM, and BI, the company gives a tough competition to counterparts such as Oracle, IBM, Microsoft, and others. If Gartner is to be believed, SAP stands at the fourth place after Microsoft, Oracle, and IBM in the software market in India. The company’s software revenue in India acounts for $317 mn with a single-digit growth of 8%. However, the company is suffering from instability crises at the top level in India. It has seen more than four managing directors in less than four years in the country. SAP India appointed Deb Deep Sengupta as its Managing Director for India. Sengupta replaced Ravi Chauhan who spent a very little time at the top position. The frequent changes in the top leadership have not sent a strong signal in the industry and among customers. Globally, SAP delivered strong revenue growth in 2014. Full-year earnings posted 59% growth YoY in non-IFRS cloud subscriptions and support revenue (60% at constant currencies), driven by a strong demand for the SAP Cloud portfolio and the SAP HANA platform. Non-IFRS cloud subscriptions and support revenue also grew by 98% YoY (87% at constant currencies). SAP’s performance for the year in APJ reflected migration of existing and new customers to SAP Cloud |

A CyberMedia Publication

SAP is bullish about its cloud solutions in India and has gained traction in the emerging segments such as eCommerce for its cloud offerings

2014-15

9,896

2013-14

9,520

4%

Source: DQ estimates revenue (`crore)

and strength in its core SAP HANA and analytics businesses. India delivered strong double-digit software revenue growth in Q4. The company also continued to see broad adoption of SAP HANA across industries and use cases in APJ. Non-IFRS software and software-related service revenue grew by 6% (2% at conwww.dqindia.com

stant currencies) in Q4. Increased demand for the SAP HANA platform was reflected in accelerated growth for SAP Business Suite powered by SAP HANA. The rise of eCommerce in the region is also boosting demand for omni-channel commerce solutions from hybris and cloud-based procurement and trading network from Ariba, both of which are SAP companies. SAP acquired hybris in 2013 and the company officially became a part of SAP from January 1, 2015. hybris was named as a Leader in Gartner’s latest ‘Magic Quadrant for Digital Commerce’ in late September, reflecting the strengthening of its position in the eCommerce market through 2014. From back office to boardroom, warehouse to storefront, desktop to mobile device—SAP empowers people and organizations to work together more efficiently and use business insights more effectively to stay ahead of the competition. In India, SAP is the clear market leader in the ERP space. SAP India is the third largest subsidiary for SAP with over 8,000 employees. The company has a direct presence in eight Indian cities including Bengaluru, Mumbai and Delhi and has 6,600+ customers in the country. Interestingly, its 83% customers are SMEs which indicates its strong presence in the country. SAP claims to spend more than 13.5% of its total revenue on R&D to constantly innovate and bring out the world-class solutions. In FY16, SAP needs to address the leadership crises in India if it wants to strengthen its market share in different segments, especially cloud where it has just begun its journey. July 31, 2015

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51

the dq 20

Rank Rank

0 1 4

Cisco Systems India Cisco is discovering ways to expand and increase adoption of its solutions in India. It continues to invest in the wake of business opportunities generated by government initiatives

2013-14

0 1 3

52

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July 31, 2015

—DINESH MALKANI President

D

espite facing stiff competition from its Chinese counterparts, Cisco Systems India managed to clock a 9% growth in

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FY15. Its turnover for the fiscal stood at `9,740 crore as against `8,902 crore in FY14. The company has a strong focus on India and is looking at ways to increase its presence in the country. However, it has not been A CyberMedia Publication

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able to double its India business, which it has been aiming for the last few years. Despite 9% growth, the company is struggling to increase its sales presence in the country. While the company is endeavoring to increase its presence in the enterprise segment for its networking and datacenter solutions, it is in the process to identify a clear growth trajectory in the country. India is Cisco Systems’ second global headquarter and accounts for 30% of its overall talent base. The company’s current headcount stands at 10,200. According to Cisco’s CEO John T Chambers, the company is investing close to $1.7 bn in India annually. Cisco has realized the growth potential in India, given Modi government’s push on ‘Digital India’ and ‘Make in India’. Last year, the government was in the planning phase, hence it did not result into any business for Cisco India. However, it now hopes to gain from various government projects that will have a great impact on its revenues. Chambers had earlier hoped to take India revenues to 5% of the global revenues. However, his expectations have not even reached half way as India contributes meagre 2% to its global revenues. Cisco is now hoping to reap on the growing demand for cloud and networking solutions in India. The company has also announced new local strategic initiatives, including the move to enable manufacturing in India to support the Digital India vision. It has announced plans for direct and indirect investment of up to $20 mn over the next five years into the Cisco Networking Academy, with additional $40 mn for the next phase of expansion in India. Apart from Cisco’s traditional networking portfolio, Cisco rapidly grew |

A CyberMedia Publication

Cisco aims to double its India business in the next few years. It is betting big on the government projects such as smart cities and Digital India

2014-15

9,740

2013-14

8,902

9%

Source: DQ estimates revenue (`crore)

its server business. Its UCS range of servers has fast taken on the competition who are losing their market share in the server space. Overall, the company is trying to diversify its business from the switching and router space as it sees opportunities in new areas such as cloud, mobility, IoT, and big data. Cisco eyes great opportunity in India’s focus on building 100 smart www.dqindia.com

cities. The company closed four deals last year for four smart city projects such as Navi Mumbai, Pune, Jaipur, and Lucknow. While Cisco is providing the networking infrastructure for the projects, it is working with partners which will provide different solutions such as smart street lighting, traffic management systems, CCTV security surveillance systems, and water management systems. The company is putting a lot of emphasis on its own version of IoT which it calls the Internet of Everything. It has successfully created the buzz for this trend but has not yet seen any uptake as IoT is only a part of the boardroom discussions. Cisco Systems India has been seeing frequent changes in the top leadership in the last few years. FY15 saw Jeff White, Cisco’s President and Country Manager for India and Saarc region moving out of the company. White had moved to India in January 2013 replacing Naresh Wadhwa, who had spent almost 15 years in Cisco. Later, Dinesh Malkani replaced White who began to oversee Cisco’s business in the region. The main area Cisco needs to address is the fierce competition it faces from its Chinese counterparts which are offering solutions at much lower prices to its traditional strongholds— telecom operators. Cisco has to identify new revenue streams in India and expand its network to tap market opportunities in the government and large enterprise segments. Besides, the company needs to create a business strategy to rope in mid-size enterprises which are afraid of doing business with Cisco as they consider it a premium brand. If it is able to move beyond its traditional image, Cisco is set to grow and increase its customer base in the country. July 31, 2015

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53

the dq 20

Rank Rank

0 1 5

Microsoft India Microsoft India has invested `1,400 crore in three datacenters which would be unveiled by the end of 2015

—BHASKAR PRAMANIK Chairman

2013-14

0 1 6

54

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July 31, 2015

M

icrosoft India continued its growth momentum during the fiscal 2015 in the Indian market with a solid 19%

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growth. Even though Windows sales were stable after the XP refresh, the company kept on pushing Windows 8.1 along with Office to entice consumers and revive sales. However, its biggest bet is on Windows 10 which A CyberMedia Publication

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is being launched in July 2015. With the changed revenue model for the upcoming Windows, it aims to garner significant customer interest. Besides, the company had a good time in the overall software market where it continued its leadership and increased market share over the other vendors. In FY15, the software giant witnessed growth from all the major verticals. It jumped into different territories to tap the future growth. In addition, the global leadership especially CEO Satya Nadella is betting big on India. He has helped the company renew its focus with big investments in the country that will help the software vendor to double its business from different verticals including the government. Eyeing a big chunk of government business in India, Microsoft earlier last year announced an investment of `1,400 crore to set up three datacenters in India. At the end of this year, the company will launch these datacenters and will be able to provide data storage within the country for various government and other organizations. The move is expected to provide an edge over the other software vendors who are still exploring opportunities to set up datacenters in India. The datacenters are expected to help the company to expand its Azure business in India. Besides, the company grew its software revenues in the country and maintained its leadership position as the software vendor in the Indian market. According to Gartner, Microsoft maintained its #1 position in software revenues in India, accounting for 25% of the overall sales in 2014. The company earned more than $1 bn from the software business alone. Since April 2013, the company has been manufacturing, replicating, marketing, and selling Microsoft soft|

A CyberMedia Publication

Microsoft is betting big on Windows 10; it has moved away from the traditional revenue model in order to compete with Google’s Andriod

2014-15

8,624

2013-14

7,224

19%

Source: DQ estimates revenue (`crore)

ware retail products and services in India. “The share of marketing support services has declined from 87% of revenue in the year ended March 2013 to 4% in the current year,” the company said in the filing. Microsoft is trying to sell its cloud services and offerings in India and has bagged a lot of customers from mid to large companies for various cloud ofwww.dqindia.com

ferings, including Office 365. But while the company has been aggressively pushing its cloud platform Azure in India, experts feel it still has a long way to go before it catches up to nimbler rival Amazon Web Services, which has had immense success bringing small and medium enterprises on board in the country. But its investment in three datacenters is going to give a boost to its cloud business in India. There are already encouraging signs of cloud adoption for Microsoft India as it claims to register tripledigit growth in the country. This is in line with the growth being registered by Microsoft Corp globally. In the last one year, Microsoft India partnered with the Government of India for various projects. A major project it bagged was from the Surat Municipal Corporation to transform Surat into a smart city. Further, it launched Edu Cloud, a cloud computing-based offering to enhance digital learning and teaching in schools and higher education institutions. This is expected to benefit 10 lakh teachers and 60 lakh students in 1,500 institutes. Besides, the company introduced unlimited OneDrive storage for all Office 365 subscribers, entered a strategic partnership with Dropbox, launched Skype for Business, and introduced Xbox One for its broad fan base in India in September 2014. Microsoft’s India strategy is centered around the untapped SMB and SME class for its Office 365 and other offerings. It has got an early success and is one of the leading cloud providers for the mid-and small segments today in India. Microsoft India has yet to resuscitate the Windows business. It is hoping big on the upcoming launch of Windows 10 but doubts persist among industry observers and analysts. July 31, 2015

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55

the dq 20

RANK Rank

0 1 6

IGaTE Despite the slowing pace of the IT services industry, IGATE has remained on the positive growth track with its investments in the right areas —ASHOK VEMURI CEO

2013-14

0 1 7

56

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July 31, 2015

E

ven as the IT services industry struggled under the impact of cross currency fluctuations, IGATE managed to pull off an

www.dqindia.com

impressive show as compared to the previous year, clocking a 17% increase in the top line. The company’s FY15 performance was backed by significant client wins and its efforts to streamline processes. The IT servA CyberMedia Publication

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ices provider has been heading in the right direction with its investments in differentiated industry utility solutions, client-centricity, and next-generation capabilities. The company saw increased business from recurring customers as a result of its strategy to focus on the expansion of its relationship with existing customers. IGATE’s industry utility solutions, Reference Data Management Solution for the financial sector (IDMS) and Long Term Care Solution for the healthcare sector (IBAS) continued to see growth momentum and helped drive a differentiated industry value proposition in a highly competitive services market. Currency fluctuations did impact margins to some extent and the company also faced some margin headwinds due to the continuing investments it had to make in some of its transformational client engagements, expanded client coverage, and hiring for growth. Yet, the performance across service lines was strong enough to keep it on a positive growth track. The major highlight for FY15 was IGATE’s acquisition by Capgemini for a sum of nearly `25,000 crore. The buyout is expected to beef up Capgemini’s presence in North America and also bring about greater scale and operational efficiencies for IGATE. The company is focused on building its onshore presence and aims to attain a healthy mix of onshore, nearshore, and offshore operations. The US continues to be the leading market for IGATE witnessing about 10% revenue growth between January to December, 2014. The IT services company is also looking at expanding its delivery centers in Canada. Additionally, it opened a new delivery |

A CyberMedia Publication

French IT services player Capgemini’s acquisition of IGATE for a whopping `25,000 crore in FY15 was one of the biggest ever in the IT services industry

2014-15

7,879

2013-14

6,734

17%

Source: DQ estimates revenue (`crore)

center in Budapest, Hungary. The year saw some key partnerships building up for IGATE. It announced a new partnership with OpenSpan to utilize OpenSpan Desktop Automation and Activity Intelligence to enhance its contact center operations and consulting services to customers in North America and Europe. IGATE and XTEL, a provider of www.dqindia.com

sales automation solutions, announced a partnership to deliver comprehensive sales solutions to the consumer goods industry in the US and Canada. The company also entered into an agreement with Experitest, known to be a leading provider of quality assurance tools for mobile DevOps including test automation, manual testing, performance testing, load testing, and monitoring for mobile applications. The partnership will allow IGATE to offer Experitest’s endto-end mobile application testing tools to businesses throughout North America. One of the significant deal wins in FY15 included the one with Rio Tinto, a global mining and metals company, as part of which the IT services provider will develop its Analytics Excellence Center in Pune. IGATE will provide Rio Tinto with analytical capabilities to identify opportunities for enhancing efficiency and productivity across Rio Tinto managed operations. Towards the beginning of the year, the company also unveiled a new brand identity, with a new logo designed to showcase its refreshed vision, mission, and core values. In line with its expansion plans, IGATE announced a new facility in Noida, India. The new facility added to its existing offices in Noida that are housed in the Special Economic Zone. The acquisition by Capgemini is expected to instill IGATE with better scale and efficiencies and add to its overall strengths. The company’s digital practice will be a key focus area in 2015. Its investments around tools, methodology, automation, and program management are expected to pay off significantly in the coming quarters. July 31, 2015

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57

the dq 20

Rank RAnk

0 1 7

APC by Schneider Electric India Strengthening the endto-end datacenter services and solutions portfolio and expanding geographical reach were keys to yet another year of solid performance for Schneider in India

2013-14

0 2 0

58

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July 31, 2015

—NIKHIL PATHAK VP & Country GM–IT Business India & Saarc

D

espite a staggering demand on the government side, APC Schneider Electric India’s IT business managed to register

www.dqindia.com

a robust growth in the market share in FY15. With an impressive overall performance, it has climbed up to 17th spot in the DQ rankings from 20th last year. Pretty much in line with the previous year, growth was largely led A CyberMedia Publication

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by the datacenter segments, including datacenter life cycle services and datacenter physical infrastructure solutions. The company has attained a strong spot for itself in the datacenter infrastructure market with a complete portfolio that includes racks, UPS, cooling, and software. A balanced mix of innovative solution offerings plus expanding customer reach has helped the company drive growth in the Indian market. It has been launching products across the range and has been building up its datacenter solutions portfolio. The company’s ability to eye emerging trends and respond quickly has helped it stay relevant in a highly competitive market. One important trend that Schneider has witnessed over the year is that despite many new datacenters being built, a lot of datacenters are actually aging. Sensing an opportunity, the company has been investing in providing datacenter assessment services to customers. In India, it sees a huge opportunity in leveraging the large network of channel partners. This has been a key focus for Schneider over the last couple of years and the company has been making consistent investments on that front. One major challenge that it faced in the year was a slowdown in demand from the government side. Yet, India continues to be a major growth driver in the APAC region. The company is optimistic that the Digital India initiative by the Indian government will accelerate technology adoption and in turn drive larger opportunities for the datacenter service providers. The year saw Schneider coming up with some key launches. In November |

A CyberMedia Publication

The company is sensing huge opportunity in the government’s Digital India initiative and expects it to drive growth in FY16

2014-15

6,848

2013-14

6,114

12%

Source: DQ estimates revenue (`crore)

2014, it announced ‘InfraStruxure’(ISX) for SMBs in India. The roadshow for ISX SMB was done across 10 cities in India. The company also launched a portable charging device in India called APC Mobile Power Pack in two variants: 5,000 mAh and 10,000 mAh. Moving into FY16 Schneider is seeing renewed confidence in the Indian market and will be looking at www.dqindia.com

working more closely with its channel partners and customers. The company will be focused on expanding and strengthening its product leadership. The thrust on geographical expansion continues. Schneider plans to develop and grow professional services by reaching out to over 150 channel partners across over 24 cities, especially in tier-1 and -2 cities. In order to reach 95 towns across India, IT business along with other business units under Schneider have started a campaign called Schneider Electric Proximity Roadshow. Foreseeing the burgeoning demand in the SMB space, the company also aims to significantly localize and expand its mid-market offerings to address the growth from existing and newer geographies. With the shift to cloud and portable devices, the data network connection becomes critical. The company will hence be more focused on leveraging on digitization and mobility trends. Another area where the company sees strong potential is the Installed Base Services, where it is looking to maintain and retrofit customers and also looking to leverage customer base by cross-tracking its businesses. Opportunities around Digital India initiative are also expected to drive growth in FY16. The company is already working with the Indian government to create blueprints for an ideal smart city and is actively participating in the upcoming live smart city projects in India. Integrated solution offerings will be a key focus area going ahead. In line with its strategy in the last few years, building and strengthening an end-toend portfolio of services and solutions around datacenters will help the company maintain and solidify its position in the Indian IT landscape. July 31, 2015

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59

the dq 20

Rank

0 1 8

Capgemini India With more than 50,000 employees, Capgemini India is the largest offshoring center for the company

—ARUNA JAYANTHI CEO

2013-14

0 2 4

60

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July 31, 2015

F

or French IT consulting firm Capgemini, India plays a pivotal role in the group’s overall strategy. The group has been wit-

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nessing a robust growth in the India market in the recent past. In FY15 too, Capgemini India continued on a strong growth momentum, registering about 15% growth. The company’s revenues grew to A CyberMedia Publication

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`6,305 crore from `5,483 crore last fiscal. Its strong performance has helped the company climb up the ladder in our rankings and move to 18 th spot as compared to 24 th last year. Focus on India can be gauged from the fact that out of the global strength of 143,650 employees in more than 40 countries, the company has over 56,000 employees in India. However, with the recent acquisition of IGATE, the employee base for India will increase to 80,000-85,000 employees in the country by the end of this year. This has overshot its internal hiring target of 70,000 employees by the end of 2016. Capgemini is also the only European firm to employ more than 50,000 people in India, making the country its largest offshoring center. Further, Capgemini has spent over $5 bn in acquisitions in India— IGATE, Kanbay, Unilever’s finance and accounting processing services arm, Indigo, and Thesys Technologies. Capgemini CEO Paul Hermelin has publicly said that with IGATE acquisition, the firm has become one of the biggest leaders in the IT outsourcing space. With the IGATE acquisition, Capgemini will also become strong in the infrastructure business. The acquisition is expected to bring Capgemini at par with its competitors like IBM, Wipro, and HCL Technologies, which have a robust systems integration and infrastructure business. The acquisition will also make the company more competitive from a delivery point of view. For example, as some analysts have pointed out, IGATE’s presence in tier-2 cities will be extremely beneficial to Capgemini |

A CyberMedia Publication

Capgemini India has spent over $5 bn in acquisitions in India— IGATE, Kanbay, Unilever’s finance and accounting processing services arm, Indigo, and Thesys Technologies

2014-15

6,305

2013-14

5,483

15%

Source: DQ estimates revenue (`crore)

in terms of reducing labor-related costs. The acquisition also diversifies Capgemini’s revenues from a sector point of view. For example, IGATE derives about 42% of its revenues from the financial services sector. As offshoring contributes a huge percentage of Capgemini’s global revenues, and India handles more www.dqindia.com

than 80% of the offshore work, this deal will help it compete with competitors such as Accenture and IBM effectively. That said, not every acquisition is successful. To make this acquisition work, Capgemini will have to spend a lot of time in integrating the different delivery methodologies that both the companies follow. Besides delivery, Capgemini India also uses India as a test bed to test new solutions with Indian clients. The firm has developed some innovative solutions in India for clients in the utilities sector. In India, more than 85% of the work is divided between application development, infrastructure management and consulting services, while 15% comes from BPO. India is also expected to play a pivotal role in the emerging field of digital services. Capgemini India has six innovation labs which will help in driving digital transformation for its clients. The bulk of the business is expected to come out of the US in the next one year. Like other MNCs, Capgemini India is also trying to improve women representation at senior levels. As per media reports, over the past three years, the diversity ratio has increased to 26% from 24% in 2013. These efforts can also be seen in campus hiring wherein the company has hired more female engineers this year. Capgemini reports having a good customer base comprising marquee clients. It helped the Maharashtra Sales Tax Department in fighting tax fraud, notably by collating data from various external agencies across Maharashtra, as well as the Indian government. This was another feather in the cap for the company. July 31, 2015

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61

the dq 20

Rank

0 1 9

Intel India Intel globally needs to reinvent its mobile play and come out of its PCcentric mould; this will kickstart and ramp up India revenues as well

—DEBJANI GHOSH MD

2013-14

0 1 8

62

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July 31, 2015

I

ntel India continues to face challenges in the Indian market as it struggles to sustain its growth trajectory due to falling sales of PCs. Globally too, the company is wading through

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rough waters as it has not been able to increase its footprint in the growing segments such as mobile and tablet. In FY15, Intel contained its degrowth to -2% as against to -5% last year. The company lost market share A CyberMedia Publication

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to AMD in the local market as opposed to the global trend where AMD is struggling to gain a foothold. Intel significantly lost to the competitors when it failed to provide chips at competitive prices for various state government’s free laptop schemes. In the consumer market, the company witnessed PC adoption trend in the later part of the year. But this was not enough to show the company a positive roadmap. As opposed to earlier years, the assembled PC market was far slower which has been the biggest setback for the company. The problem with Intel is that it is straddling the fence between PCs and smartphones. While it is considered to be the best in the PC space, it is yet to show its significance in the smartphone and tablet arena with competitors such as Qualcomm, Broadcom, and Mediatek. Most of the smartphones and tablets powered by Intel have failed to impress the consumers globally and so in India. In India, Intel tried to experiment at all levels with traditional as well as new vendors for the mobility solutions. But its efforts have fallen short. The biggest reason of its failure in the smartphone segment has been its Atom processor which the consumers believe to be low in power as opposed to Qualcomm’s Snapdragon. The company needs a better branding to address this marketing issue. Experts believe that the company has the potential to outsmart the competition but has to carve a well-defined path to gain handset manufacturer’s confidence. In addition, the company has not taken a powerful marketing route to project itself as a favored chip for handsets whereas Qualcomm and others have. Its smartphone drive with companies such as Orange, Lenovo |

A CyberMedia Publication

Clearly, Intel Atom is not a game changer, and its failure to manifest volumes indicate that Intel needs to come out with radical new innovations and leverage R&D much effectively

2014-15

6,292

2013-14

6,412

-2%

Source: DQ estimates revenue (`crore)

and Xolo, etc, has not paid off. However, Intel seems to go fairly good in the Windows tablet space where it has got its traditional partners and new ones launching 10-inch devices with Intel chip. Its tablet is thus a beginning for the future. While it is a positive start for the company, it needs to pay attention to this segment and invest in creating awareness www.dqindia.com

amongst manufacturers. But one of the innovative products launched with Intel chip was earlier this year when iBall launched a PC-on-a-stick for less than `10,000. It can not only stream media from the Internet to the TV—like Google Chromecast and Teewe—but also support a mouse and keyboard offering processing power comparable to tablet computers. Perhaps, the company is waiting for such devices to create ripples in the market that can help it regain its market share. The company was seen doing a lot of things globally and went ahead with a couple of key acquisitions that are aimed at strengthening its future margins. One of the notable moves was the acquisition of Altera Corp which it bought for $16.7 bn. This acquisition is a right move as it will strengthen its position in the server space. Although, the server market is not in the best of times at present, it is expected to leave solution providers with high margins. Intel seeks to make up for slowing demand from the PC industry by expanding its line-up of higher-margin chips used in datacenters. By combining with Altera, Intel will be able to bundle its processing chips with the smaller company’s programmable chips, which are used, among other things, to speed up web-searches. Intel in India, however, shares a positive outlook from its datacenter business and believes that the business will grow by 15% in the next three years. The company is also working on steps to support the demand as the computing performance of the technology has to go up. But Intel needs to focus on new opportunities in the mobility space which has not yet fared well for the company. July 31, 2015

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63

the dq 20

Rank Rank

0 2 0

HCL Infosystems Restructuring exercise initiated in FY14 continued to adversely impact the profitability of the company in FY15, with HCL Infosystems struggling to regain its position

2013-14

0 1 5

64

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July 31, 2015

—PREMKUMAR SESHADRI Executive Vice Chairman & MD

F

Y15 was yet another challenging year for HCL Infosystems as the company continued to struggle to gain its foothold. HCL Infosystems’

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revenue further declined this fiscal by 24%, slipping to `6,270 crore from `8,218 crore in FY14, where its revenue had dipped by 26%. Much like last year, the key reason for the company’s degrowth can be attributed to A CyberMedia Publication

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destabilization in the company owing to major organizational and structural changes. In continuation with strategic changes introduced last year, HCL Infosystems in FY15 kept its focus on moving away its learning business from a hardware driven asset-heavy model to a content driven asset-light model. It has also changed its focus on its systems integration business from growth to disciplined execution of existing projects. This restructuring necessitated the company to realign its business, which is the key reason that has impacted the profitability of the company. Another factor that continued to adversely impact its profitability was the exercise of discontinuing its computing products business (HCL branded PCs and tablets). Although the company had initiated this process in FY14, it was still at the tail-end of this exercise in FY15. The company also saw some changes in the leadership front with Harsh Chitale stepping down as the CEO and Managing Director and Premkumar Sheshadri taking over as the new MD. Although the company continues to struggle on many fronts, the structural changes are expected to pay rich dividends in the long run. In fact, the new strategy of HCL Learning, the company’s learning business, has already started showing results with the company winning many noteworthy content deals from reputed clients, including Bombay College, Aditya Academy, CARACAL Solutions, and D-Square Solutions. The company’s services business (consisting of enterprise and consumer services) also witnessed healthy growth backed by consistent business traction in India and the overseas market. In the Middle East, the services business acquired ma|

A CyberMedia Publication

Premkumar Seshadri to usher in the next phase of transformative growth of the company as the new Managing Director

2014-15

6,270

2013-14

8,218

-24%

Source: DQ estimates revenue (`crore) *HCL Infosystems follows the July to June FY for its financial reporting but for the purpose of parity we have taken revenues for the April 14— March 15 period

jor clients including the Ministry of Health, UAE, and a leading telecom operator in the Gulf region. The company’s enterprise distribution business too achieved good traction by adding new partners like Acer for projectors, Philips for largeformat displays and others across the audio-visual, information secuwww.dqindia.com

rity, and server storage spaces. In fact, the enterprise distribution business achieved a significant milestone by crossing the `100 crore per month mark in March 2015. The company also witnessed robust growth for IMS (Infrastructure Managed Services) and Care (consumer break-fix services) businesses. Further, HCL Infosystems’ Consumer Electronics & Home Appliances business also gained momentum due to increase in its channel ecosystem and coverage footprint. In Q2, the company registered an increase of 60% in its number of distributors and dealers. To revive its growth, the company is entering into a slew of strategic alliances and partnerships. One of the major announcements towards the end of the fiscal was HCL Infosystems’ tie up with Strontium, a PC and flash memory manufacturing company. The partnership is poised to spur growth across markets through various channels. The company also extended its engagement with Nokia India Sales Private (a subsidiary of Microsoft Mobile OY) to distribute Microsoft Lumia and Nokia first and feature devices and accessories across India. HCL Infosystems expects the partnership to trigger significant business growth and enable it to explore new channels to enhance its last-mile connect. During the year, HCL Infosystems also entered a strategic alliance with Lenovo India. Under this partnership, HCL Infosystems will sell and support Lenovo’s entire portfolio of PCs and tablets, as well as enhance its existing cooperation in the distribution of tablets, through its wholly owned subsidiary Digilife Distribution and Marketing Services (DDMS). The partnership is poised to trigger growth and extend business for both the companies. July 31, 2015

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The Next 30 RANK

COMPANY

PAGE NO.

RANK

COMPANY

PAGE NO.

21

Lenovo India

68

36

Hexaware Technologies

88

22

Savex Computers

69

37

Tata Technologies

89

23

Mphasis

70

38

Zensar Technologies

90

24

Syntel

72

39

Iris Computers

91

25

L&T Infotech

73

40

Apple India

92

26

Samsung India

74

41

CMC

93

27

Acer India

76

42

EMC India

94

28

Rolta India

77

43

NIIT Technologies

95

29

Mindtree

78

44

Asus India

96

30

Genpact

80

45

Compuage Infocom

97

31

KPIT Technologies

81

46

Texas Instruments India

98

32

Rashi Peripherals

82

47

Canon India

99

33

CSC India

84

48

Lycos Internet

100

34

Vakrangee

85

49

Supertron Electronics

101

35

Cyient

86

50

Polaris Consulting & Services

102

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July 31,2015

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67

the dq 50

Rank Rank

0 2 1

Lenovo India Lenovo has strengthened its product portfolio by acquiring IBM’s x86 server business but needs to synergize it seamlessly to target greater revenues

2013-14

0 2 2

68

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July 31, 2015

—AMAR BABU Chairman

I

n FY15, Lenovo India is perhaps one of the few players in the PC market that went on an aggressive mode and enlarged its mandates in this part of the world. It expanded its PC business in India through government deals and demand from tier-2 and -3 cities as the PC penetration is yet not at a satisfactory level in upcountry. In FY15, the company witnessed a modest growth of 5%. As against the previous year when it did a good number of business with various state governments for laptops, this year it witnessed a slow demand for laptops and PCs. However, it continued its focus on the PC business betting big on the next wave of PC consumption in India. Lenovo hopes to get demand from tier-2 and -3 cities as users in these cities do not have exposure to laptops or desktops but they are accessing web on the go using their smart de-

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vices. The company strengthened its product portfolio keeping in mind the demand and configuration in vogue. Not only notebooks, Lenovo unveiled desktops including ThinkCentre M73 Tiny Desktop which is designed for small workspaces. The company is also putting a lot of focus on its mobility business. Its tablet business was a little tepid last year compared to the smartphone business. In FY15, Lenovo’s biggest bet was on IBM’s server business which it bought last year. It plans to tap a considerable market in the enterprise and government sectors. While Lenovo has bought only x86 business, it is trying to strengthen its position in the server market as well. Although, most of the IBM customers shunned Lenovo and moved to other vendors such as Cisco, Oracle, HP, etc, the company seems to have a wellthought roadmap to tap this segment and complement its PC business. Of late, the company has announced plans to start manufacturing in India. While these plans are limited to smartphones only, it is probable that the company escalates these plans to manufacture tablets and other products later.

2014-15

6,020

2013-14

5,740

5%

Source: DQ estimates revenue (`crore)

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Savex Computers Savex Computers went through challenges in FY15 because of muted growth in the IT hardware market

2013-14

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A CyberMedia Publication

—ANIL JAGASIA Chairman and MD

I

n FY15, Savex Computers faced growth challenges with its growth rate sliding down to modest 4%. The company managed to clock revenue of `5,905 crore against `5,678 crore in the last fiscal. With the distribution space struggling in the growing influence of eCommerce business in India, the company’s story is no different than its competitors. Interestingly, Savex handles eCommerce stores for different companies in India including HP and Samsung, among others. The products ordered on HP’s website are delivered by Savex. Thus, the key reason behind its slow growth is sluggish demand for IT hardware across the industry in India and globally. The company also had to face problems with regards to Samsung India’s eStore where it does not allow consumers to cancel orders once confirmed. www.dqindia.com

On a positive note, Savex was able to bag a few contracts. Savex was appointed as a distributor for selling HP products to DGS&D. It was also appointed a distributor for Samsung’s commercial TVs for the hospitality industry. In addition, the company executed large orders of HP High Performance Computing (HPC) to educational and research institutes. Savex Computers continues its efforts to strengthen its network across the country as it is aware of the business opportunity available. During the year, Savex Computers deployed resources for expanding and growing the enterprise business and invested in a demo center. To keep the channel mood upbeat, Savex launched a host of schemes. Besides, the company organized more than 100 events during the year across the country to increase customer engagement. Savex also became the founding member of the Technology Distribution Association of India (TDAI). To gain back its growth momentum, besides enhancing its presence in the channel community, the company needs to deal with service and distribution challenges, as well as find ways to counter the growing eCommerce threat.

2014-15

5,905

2013-14

5,678

4%

Source: DQ estimates revenue (`crore)

July 31, 2015

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69

the dq 50

Rank Rank

0 2 3

Mphasis Mphasis fails to keep the growth momentum going in FY15, as HP channel business and Digital Risk continue to be a drag

2013-14

0 2 1

70

|

July 31, 2015

—GANESH AYYAR CEO and Executive Director

I

n stark contrast with its impressive performance in FY14, Mphasis disappointed this time with top line falling by about 3%. It had registered a 13% growth in revenue in the previous fiscal backed by renewed demand for IT services in the advanced markets.This time growth was thrown off-track as both HP channel business and Digital Risk, the US-based data analytics company it acquired in 2012, saw a decline, resulting in a below average performance. Digital Risk’s performance suffered largely due to headwinds in the US mortgage market. The performance of direct organic business was impressive though with some significant deal wins. The year’s key highlights included the launch of Mphasis Next Labs, a strategic initiative by Mphasis to research and innovate on emergent and future paradigms. Mphasis Next

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Labs focuses on emerging technologies including SMAC, IoT, and automation through applied research, IP creation, thought leadership, and new product, service, platform and solution development. FY15 also saw the IT services provider entering into key partnerships. It partnered with Aureus Analytics to bring advanced predictive analytics and big data solutions to insurance and banking players. The senior leadership also saw some movements with Suryanarayanan V taking over as the Chief Financial Officer. In line with its ‘Unleash the Next’ theme, Mphasis also announced a global partnership with Mendix, an enterprise app Platform-as-a-Service company, to deliver next-generation application development services. The company expects degrowth in its digital risk business to come to an end with the new deal wins. On a darker note, the HP channel business is expected to be on a decline for the next few quarters and this is likely to put pressure on the revenues in FY16. Mphasis is hopeful that the momentum in the direct organic business will continue and its focus on digital and application management services space will pay off.

2014-15

5,806

2013-14

5,986

-3%

Source: DQ estimates revenue (`crore)

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[email protected]

+ INDUSTRY AWARDS

the dq 50

Rank Rank

0 2 4

Syntel In contrast to a stellar performance in FY14, Syntel witnessed a humble growth of 7% in FY15

2013-14

0 2 5

72

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July 31, 2015

—NITIN RAKESH CEO and President

S

yntel recorded an annual revenue of `5,586 crore in FY15, registering a YoY growth of 7%. Compared to the last three financial years, wherein Syntel had witnessed a growth rate of 29% (in FY14), 27% (in FY13), and 21% (in FY12), the growth rate witnessed a sharp decline. However, given the current market conditions, decline in the growth rate can be justified. Around 99% of the revenue was bagged through exports while the rest was through domestic markets. Among the international markets, Syntel’s 90% customer base lies primarily in the US and Canada, followed by Europe (9%). The company is gradually making its way in the Australian (0.4%) and the South African (0.02%) markets. Among verticals, BFSI sector at 36% held the lion’s share of the comwww.dqindia.com

pany’s customer base, followed by retail, transportation, and logistics (16%), and healthcare (15%). The company added 27 new clients this financial year. It is placing huge bets on its realignment strategy and enabling its clients using traditional technologies to adapt to new technologies. One of the major announcements was the creation of an internal group, Digital One, with an aim to enable its clients to achieve digital enterprise transformations through smart adoption of mobility, cloud, social, big data analytics, and Internet of Things. Syntel also announced the establishment of a new delivery group called the Managed Services Organization to industrialize ‘run-the-business’ services. Apart from this, the company launched a new product SyntBots, which automates infrastructure, application and UI elements across a variety of platforms. The major achievements marked this year included recognition by the International Association of Outsourcing Professionals in ‘The 2015 Global Outsourcing 100’. It was honored with a Special Commendation from the Golden Peacock HR Excellence.

2014-15

5,586

2013-14

5,210

7%

Source: DQ estimates revenue (`crore)

A CyberMedia Publication

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RAnk Rank

0 2 5

L&T Infotech Although L&T Infotech’s growth in FY15 was in line with the industry average, the company missed its internal target of achieving more than 20% growth

2013-14

0 1 9 |

A CyberMedia Publication

—VK MAGAPU Managing Director

I

n FY15, L&T Infotech, the IT services and solutions arm of the engineering, procurement, and construction major, posted a modest 13% growth. The company’s growth is the result of its efforts in the existing markets such as the US, UK, and Europe which contribute 80% of its revenues. While L&T Infotech grew at par with the industry, it did not match its own targets internally as it was poised to grow more than 20%. It had even set a target of achieving $1 bn revenues globally, which it could not achieve. However, the company boasts of a robust pipeline for the coming year that gives it the confidence of achieving the $1bn revenue mark in the ongoing fiscal. Besides, the company is also inching closer to the IPO. According to media reports, the company is willing to roll out its IPO in mid-2016. Its IPO plans are aimed at raising capital to www.dqindia.com

strengthen its footprint in the existing and new markets. FY15 was a mixed year for the company since some of its key accounts did not pay off well. Two of its accounts from the energy and oil space had to undergo challenges in FY15 which affected its growth and revenue targets. Besides, there were other accounts that continued to underperform. To achieve its vision of becoming a $1bn company in FY16, L&T Infotech is working on growth strategies and considering expansion. While it hunts for new geographies, it is also focusing on further strengthening its presence in the US, UK and Europe, which are the major contributors to its revenues. Besides, it is equally focused on India especially it does not want to miss the train on Digital India and smart cities. Because of its parent company, it is hoping to jump into the fray and bag some of the projects. Its efforts have already started showing results. It recently bagged a $10 mn contract from Rail Vikas Nigam for process modernization. L&T Infotech is also extremely postive about the Middle East market, which is expected to grow significantly. Its parent company is already working on projects worth $800 mn.

2014-15

5,480

2013-14

4,850

13%

Source: DQ estimates revenue (`crore)

July 31, 2015

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73

the dq 50

Rank Rank

0 2 6

Samsung India While heavily focusing on its mobile business, Samsung seems to have distanced from its IT business

2013-14

0 2 6

74

|

July 31, 2015

—ASIM WARSI VP, Mobile and IT

I

n FY15, Samsung India had to face a lot of problems for its IT business as it struggled on every front—PC monitors, printers, notebooks, digital cameras, etc. The growth was flat, with the company clocking a revenue of `3,995 crore in FY15 against `3,950 crore in FY14, posting only 1% growth. The main reason for the company’s muted growth is that it has deployed all its strengths into building up infrastructure—sales and channels—around smartphones. This has put all other IT products in the background. It was only in the last quarter that the company was able to receive growth in the printer division. According to CMR, Samsung, witnessing a continuous decline in shipments since 1Q CY2014, turned around and recorded a 58% QoQ growth in 1Q CY2015. Unlike earlier years, the company’s IT stable seems to have run out

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of steam. The problem is that the company is seeking its future only in smartphones. Samsung realized what is missing in its strategy only recently and went on a restructuring spree. But the restructuring led to the exit of top people from the company causing further damage to its business. Tarun Malik, Director and Head of Digital Content, Cloud and the Media Solutions Center, and Sandeep Bhushan, Director of the go-to-market strategy, moved out of the company in the process. One of the biggest setbacks was on the tablet front, when it lost #1 position to an Indian company iBall which topped the Indian tablet market in the fourth quarter of 2014, as per IDC report. iBall had the maximum market share with 15.6% followed by Samsung (12.9%), Datawind (9.6%), Lenovo (9.4%), and HP (8.7%) while others had 43.8%. This clearly meant that Samsung was no longer a favored brand in the tablet space. While Samsung has been too inclined towards its mobility business for a few years now, it is important that it pays equal attention to strengthen its IT business which has the potential to yield long-term and sustained growth.

2014-15

3,995

2013-14

3,950

1%

Source: DQ estimates revenue (`crore)

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the dq 50

Rank Rank

0 2 7

acer India Changes introduced in the last fiscal to increase market penetration have enabled acer to maintain its foothold in the competitive segment

2013-14

0 2 7

76

|

July 31, 2015

—HARISH KOHLI Managing Director

I

n FY15, Acer registered a marginal growth, primarily on account of organizational changes it introduced in the last fiscal. The company in FY14 had segregated its operations into two separate SBUs—commercial business unit and consumer business unit. As a strategy, Acer’s commercial business unit continued to focus on the BFSI, government, and education sectors. SMBs and corporates were new areas of focus. The consumer business unit asserted on extending the reach in smaller cities and towns. As a step to increase business volumes, Acer also tied up with reputed eCommerce players and launched exclusive products/models. R13, ICONIA Windows Tablet, and Switch are a few products launched by the consumer segment that received good response. Acer also continued its strategy of aggressive social media marketing;

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with over 1.5 mn fans on Facebook and over 6,500 followers on Twitter, Acer has become one of the biggest social media players in the category. In fact, this year it went a step further by doing an exclusive social media launch for its product ICONIA Windows Tablet. In the government sector, Acer holds a market share of 18.92%, as per IDC. In FY15, it witnessed major wins from the state governments of Tamil Nadu, Karnataka, Orissa, UP, Rajasthan, Assam, Kerala, and Haryana. It also participated and saw some good wins under the central and the PSU segments through DGS&D and National Informatics Center Services contracts. With 26.28% market share, Acer ranks number two in the education segment, as per IDC. This year, it saw some major wins in higher education institutions including Anna University, RGUKT, VTU, NIT Hyderabad, NIT Trichy, IIT Guwahati, IIT Patna, IIT Roorkee, IIIT Bangalore, Tripura University, and Kurukshetra University. Cashing in on the RBI guidelines, Acer pitched in for refresh and replacements at PSU and private banks and also witnessed good wins in the BFSI segment.

2014-15

3,692

2013-14

3,602

2%

Source: DQ estimates revenue (`crore)

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RAnk Rank

0 2 8

Rolta India After a stellar show in FY14, Rolta continues to head strongly on the growth trajectory with yet another year of impressive top line performance

2013-14

0 2 9 |

A CyberMedia Publication

—KAMAL K SINGH Chairman & MD

R

olta India had witnessed momentous growth in FY14 with a whopping 55% surge in top line, with the company receiving some patents it had applied for in the US. The momentum was well sustained through FY15 as well, as the Indian IT solutions company clocked a solid 18% growth in revenues, this time backed by its strategy to transform its business model to an IP-led one. The demand for IP-led solutions for big data analytics as well as traditional applications helped it gain traction in new verticals and geographies. In FY15, Rolta’s focus primarily revolved around enhancing its software products and developing new solutions. To add strength to its strategy, the company hired senior managers and subject matter experts in all geographies, especially at all the development and R&D centers. With www.dqindia.com

the US market seeing signs of revival, Rolta has invested judiciously in strengthening its management and consulting team in North America. The company continued to see traction in BI/big data analytics with new opportunities for Rolta OneView and increasing potential for expanding current engagements coming up. In FY15, Rolta was also engaged by clients in transportation, chemicals, and utilities. Rolta’s defence business is increasingly gaining strength. A major win in FY15 was the Ministry of Defence’s (MoD) development agency order for the Battlefield Management System (BMS) project, (which the company jointly bagged with BEL) worth over `50,000 crore. The company has been significantly investing in BMS technologies and the order will act as a shot in the arm. It also won a multi-million dollar additional scope of work by Sadara Chemical Company to implement a comprehensive engineering information system. It will also be looking at enhancing its capabilities in R&D and product development. In the coming years, the company expects to see greater contribution from IP-licensing and related annuity revenues.

2014-15

3,679

2013-14

3,114

18%

Source: DQ estimates revenue (`crore)

July 31, 2015

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77

the dq 50

Rank Rank

0 2 9

Mindtree FY15 was yet another rewarding year for Mindtree as it registered above average top line growth with digital being the key driving force

2013-14

0 3 0

78

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July 31, 2015

—KRISHNAKUMAR NATARAJAN CEO and Managing Director

A

mid all the uncertainties prevailing in the global economy, Mindtree has put up a really impressive show over the last couple of years. And with nearly 17% jump in revenues in FY15 as compared to the previous fiscal, it continues to head on the growth trajectory. Increase in worldwide IT spends, favourable currency movements, and higher operational efficiencies were the key factors driving its growth. The company’s expanding focus on digital business has started paying off well, with significant 33% of the revenue coming in from there. Amongst geographies, advanced economies, primarily US and Europe showed growth momentum, while there was a slowdown in the emerging markets as compared to the previous year. US and Canada continue to be the most significant markets for www.dqindia.com

Mindtree, accounting for nearly 62% of the total revenues, while BFSI remains the top vertical holding about 24% share. Another major highlight was the acquisition of Discoverture Solutions, a move that is expected to beef up its presence in the insurance space. Mindtree continues to invest in enhancing the physical infrastructure to support its new business initiatives. Mindtree Kalinga, its new global learning and delivery center in Bhubaneshwar, which is also said to be the company’s largest investment till date, became operational in the last quarter of FY15. With renewed interest from IT services buyers, 2015 also saw Mindtree bagging some key contracts. The prominent ones include the deal with ING Vysya as its strategic digital partner and the one with Kellogg’s to manage its digital marketing operations. Going ahead, the IT services provider will be focusing on innovative business models and vertical-focused investments around digital. Mindtree is confident of continuing its growth run in FY16 backed by its strong fundamentals and new digital initiatives.

2014-15

3,547

2013-14

3,032

17%

Source: DQ estimates revenue (`crore)

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Rashi Branches : • WEST : Ahmedabad - 27430080, Ahmednagar 9594994879 , Amravati - 9004600147 , Aurangabad - 9594994875, Baroda 9824499746, Bhopal - 4046148,Goa - 9004600130, Indore - 2528056, Jabalpur - 4085864, Jalgaon - 9004600148 , • Kolhapur - 9004600129, Mumbai - 40471481,Nagpur - 6617998 / 3297998, Nashik - 9594994878, Pimpari - 9552557186, Pune - 41404512, Raipur - 4018120, Rajkot 9824499773, Sangli - 9004600131, Solapur - 9594994873, Surat - 9824499772, Vashi- 9004600083 • SOUTH : Bengaluru - 22534202 / 22225800, Calicut - 4023614, Chennai - 28362881/82/83, Cochin - 4120202, Coimbatore - 2495699, Hubli - 2213777, Kottayam - 3012229, Madurai - 4376361, Mangalore - 2225208, Mysore - 9945044900, Pondicherry - 0413 2242050, Rajahmundry - 9848494781, Secundrabad - 27721296,Trivandrum 3043000, Vizag - 2717916, Vijaywada - 6662166 • NORTH : Chandigarh - 5072648/49, Dehradun - 09359532515, Gaziabad - 09311586501, Gorakhpur - 09389602506, Gurgaon - 4084860, Jaipur - 3223171, Jammu - 2434077, Jodhpur - 9829955020, Jhansi - 09389602509, Lucknow 2205368/9, Ludhiana - 5015686, Meerut/Noida - 09311586502, New Delhi - 46609900 / 01, Parwanoo - 234303, • EAST : Bhubaneshwar 2544546, Durgapur - 9836188802, Guwahati - 2466704, Kolkata - 40011603/04, Patna - 2222961, Ranchi - 2330276, Siliguri - 2525646

the dq 50

Rank Rank

0 3 0

Genpact Faced with global market problems, where it depends on large customers, Genpact managed to clock a single-digit growth

2013-14

0 2 8

80

|

July 31, 2015

—NV ‘TIGER’ TYAGARAJAN CEO

F

Y15 did not fare well for Genpact as it did not see substantial growth in its revenues. Its growth reduced to 6% from 20% in FY14. The company had to undergo a lot of challenges, especially in the US and European markets. Genpact’s slow growth does not come as a surprise as most of the Indian services companies had this experience. The company did not see any uptake in new contracts and had to struggle to grow. In FY15, Genpact closed its acquisition of Pharmalink Consulting. The acquisition certainly helped the company to enhance its presence in the pharma sector globally. Genpact also added a new division to its operations—Genpact Pharmalink Global Regulatory Affairs—to tap the life sciences and pharma sectors. Genpact Pharmalink Global Regulatory www.dqindia.com

Affairs combines Pharmalink’s specialized domain expertise in consulting, project support, and outsourced regulatory affairs services with Genpact’s global delivery, BPO, technology, and analytics offerings for the life sciences market. GE still accounts for 20% of its business, whereas other global customers contribute close to 80% to its business. Its income from GE decreased by 2.4%, which had a direct impact on its business. Through its acquisitions from time to time such as Headstrong and Pharmalink, the company has tried to diversify and expand its presence in different sectors. Genpact is focusing on increasing the number of clients to tap the emerging markets. The company’s CEO NV Tyagarajan earlier announced that Genpact had made disciplined investments in its targeted verticals, service lines, and geographies. The company is also investing in building domain-led solutions to leverage on the tech trends across verticals. Genpact generated $272 mn of cash from operations in 2015. The company is looking at a healthy year ahead based on its robust customer pipeline.

2014-15

3,320

2013-14

3,138

6%

Source: DQ estimates revenue (`crore)

A CyberMedia Publication

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Rank Rank

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kPIT Technologies The IT services provider managed to post doubledigit growth despite economic uncertainties and challenges in the ERP business

2013-14

0 3 4 |

A CyberMedia Publication

—KISHOR PATIL CEO & MD

F

iscal 2015 proved to be a mixed year for KPIT Technologies; although the company witnessed significant traction in the products and platforms space, its ERP business faced challenges. Despite challenges, the company was able to clock 11% growth, with its overall revenue standing at `2,990 crore as compared to `2,694 crore last fiscal. FY15 was also a crucial year as it was the first full year post its organizational restructuring and formation of new business units. KPIT witnessed significant growth in the products and platforms space with the Intelligent Transportation System (ITS) revenues touching `113 crore for the whole year. The thrust on digital seems to be building up as digital technologies contributed to around 12% of the total revenues. The company expects www.dqindia.com

this share to move up substantially in the coming years. It is sensing significant opportunities in the IoT space and is looking at tapping this market by focusing on R&D and innovation. Amongst customer accounts, Cummins declined by 0.6% while the top 5 and top 10 customers declined by 9.2% and 2.5% respectively. Vertical wise, energy and utilities was the highest growing vertical with 45.5% growth, followed by automotive and transportation with 15.4% growth. In terms of geography, APAC with 44% registered the highest growth followed by Europe at 20%. Additionally, the company also worked with the Government of India and industry to complete the regulatory framework and the incentive framework for electric mobility. The company attributed unpredictable macro-economic conditions like currency movements and turmoil in the energy vertical due to lower oil prices, and periodical revenue fluctuations as major factors impacting business negatively. Going ahead, KPIT plans to invest in the right growth areas, mainly products, consultative front-end, engineering, and digital transformation to get back its growth momentum in FY16.

2014-15

2,990

2013-14

2,694

11%

Source: DQ estimates revenue (`crore)

July 31, 2015

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81

the dq 50

Rank Rank

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Rashi Peripherals Banking on its strong partner base and product portfolio, the IT distributor delivers a spectacular show again with a whopping 36% growth

2013-14

0 4 4

82

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July 31, 2015

—SURESH PANSARI CEO

F

Y15 proved to be a rewarding year for Rashi Peripherals, with the company further climbing the growth ladder. Mumbai-based distributor not only kept the growth momentum going but was able to surpass it last fiscal’s growth rate of 23% with 36% this fiscal. In the highly competitive IT distribution space, Rashi has been growing consistently with a CAGR of 29% for the last 10 years. In fact, it is listed in the elite club of top five distributors of the country. As Rashi continues to diversify its mobility business, it hasn’t diluted its attention towards the component and peripherals business. The company’s growth is backed by its network of branches comprising of 51 offices and 56 service centers and billing to almost 10,000 partners in 800 towns of India. www.dqindia.com

As a part of its strategy, the company is focused on adding more branches and has already forayed into Agartala, Srinagar, and Calicut. The company is also concentrating on further strengthening its channel network and partner base. The company is a distributor of leading brands, including AMD, HP, Intel, Logitech, Lenovo, Leadtek, Micron, Mobotix, Netgear, Nvidia, Plantronics, Sandisk, and Toshiba. One of the major highlights for Rashi this year has been the addition of Apple and Google in its brand portfolio. The company has been able to maintain equilibrium in all its five key divisions including components, peripherals, PC, networking, and communications. The year also witnessed the company bagging some awards—Rashi won the ‘Top Distributor Award’ by Intel in the desktop CPU category. Further, it was awarded as the Top Business Partner of the Year 14-15 by Lenovo India in commercial. The company is eyeing huge potential in cloud technology and plans to have a separate vertical for cloud. Outlook for FY16 for Rashi also looks positive, given its strong portfolio and reach.

2014-15

2,984

2013-14

2,197

36%

Source: DQ estimates revenue (`crore)

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CSC India CSC manages to pull off a single-digit growth in India due to higher demand for cloud infrastructure and cloudhosted applications in the country

2013-14

0 3 2

84

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July 31, 2015

—SREEKANTH K ARIMANITHAYA MD & Head, Human Resources

T

he fiscal gone by has not given CSC India enough reasons to celebrate, as the growth was stagnant. As per our estimates, the company, which employs nearly 19,600 employees and serves over 400 clients in India, ended FY15 with the revenue of `2,961 crore as against `2,875 crore in the last fiscal. Though the company faced decline in the global market, still it managed to show a single-digit growth, ie, 3% in the Indian market. According to some reports, the Indian IT services market grew 7.1% to reach $7.7 bn in 2014, helped by higher demand for cloud infrastructure and cloud-hosted applications, and a renewed focus on infrastructure projects. This is one of the key reasons which accounted for its growth in India. This year, CSC’s board of directors unanimously approved the an-

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nouncement of a plan to separate CSC’s North American public sector business into an independent publicly traded company (CSC-US Public Sector), the shares of which would be spun off in a distribution to holders of CSC shares on the record date. After the separation, CSC would focus on serving commercial clients globally and public sector clients outside the United States. The latest reports also say that Indian information technology companies, including Wipro and HCL Technologies, could bid for CSC if the US-based IT company splits its public sector and commercial operations before putting itself up for sale. Globally, CSC has infrastructure business contributing 35% to its top line while global business services, including application services and consulting, account for 34% while the North American public sector brings the remaining 31%. The year also saw CSC forming a strategic partnership with HCL Technologies to address the substantial market opportunity created by the need for enterprise clients to modernize their applications and transition to the cloud.

2014-15

2,961

2013-14

2,875

3%

Source: DQ estimates revenue (`crore)

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Vakrangee With the Indian government aggressively pushing digital agenda, Vakrangee has emerged as a key player with its huge network

2013-14

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—DINESH NANDWANA Chairman and Managing Director

O

riginally an eGovernance player, Vakrangee has now diversified into financial inclusion. The company has started reaping rich dividends with this business move. With staggering 41% growth, the company had a remarkable year in FY15 as its revenues rose from `1,965 crore in FY14 to `2,775 crore this year. Post the launch of Pradhan Mantri Jan Dhan Yojana, there has been a strong push from the banks to expand their business correspondent network not only in rural but also in the urban areas. The company is leveraging this growth opportunity and there has been a strong ramp-up in the company’s urban branches from 15 in March 2014 to 1,253 urban branches in December, 2014. In addition to Maharashtra, Rajasthan, and Delhi, where Vakranwww.dqindia.com

gee had signed common Business Correspondent (BC) agreements with 31 banks, the company will now be setting up and managing BC branches in 12 more states across India. The company has been appointed as the National Business Correspondent for banks like the Bank of India, Punjab National Bank, State Bank of India, Union Bank, Allahabad Bank, etc. By 2017, the company plans to set up and manage 50,000 branches (35,000 rural and 15,000 urban) across 16 states under common BC and national BC agreements. The company has also received a license from the RBI to set up and manage minimum 15,000 White Labeled ATMs (WLAs) across India over the next three years. The company has a huge opportunity as more than 65% of India’s population is still unbanked. With more and more services coming under the digital agenda, Vakrangee is expected to witness further growth. The company is extremely bullish over this business and expects the outlets to contribute close to 80% of its total business in the next 3-4 years.

2014-15

2,775

2013-14

1,965

41%

Source: DQ estimates revenue (`crore)

July 31, 2015

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85

the dq 50

Rank Rank

0 3 5

Cyient Backed by strong growth across industry segments and geographies, Cyient demonstrated improvement in all financial metrics

2013-14

0 4 3

86

|

July 31, 2015

—BVR MOHAN REDDY Chairman

F

Y15 proved to be a rewarding year for Cyient (formerly Infotech Enterprise), a provider of engineering, data analytics, network, and operations solutions, as it continued its growth momentum and delivered strong performance with revenue growing 24% and net profit increasing by 33% on a YoY basis. The company’s good performance was backed by strong growth across all industry segments and geographies. In terms of geography, Americas led the growth at 31% followed by EMEAI at 15%. The company’s communications industry business had a good fourth quarter as it grew by 5%, driven mainly by the APAC region which grew in excess of 20% over the quarter. To strengthen its position as a solution provider around the core services in the communications and utilities www.dqindia.com

industries, the company focused on mobile workforce management solutions, service management and assurance solutions, remote network configuration, etc. The company’s engineering business also continued to witness robust growth throughout the year, with the Americas region leading the overall growth. During the course of the year, Cyient completed three acquisitions, including Softential, Invati Insights, and Rangsons Electronics. Acquisition of 74% stake in Rangsons Electronics, and its wholly owned subsidiary Techno Tools Precision Engineering was in line with the company’s strategy of addressing the entire product lifecycle needs of its customers. The company is eyeing strong value proposition by combining Cyient’s engineering capabilities with Rangson’s product realization capabilities. Going forward, the company will continue to focus on SEZ deployment strategy and optimizing its cost infrastructure. Cyient is also focused on strengthening its product realization services and is working actively to establish a world-class product realization lab.

2014-15

2,736

2013-14

2,206

24%

Source: DQ estimates revenue (`crore)

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Hexaware Technologies Focused strategy of targeting large accounts and strengthening relationship with existing clients has helped the company clock robust growth

2013-14

0 3 8

88

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July 31, 2015

—ATUL NISHAR Chairman

H

exaware Technologies reported healthy performance for FY15, posting an increase in revenue by 14%. The company’s revenue stood at `2,706 crore as against last fiscal’s `2,367 crore. One of the key factors that was responsible for this growth was a focused strategy to get more wallet share out of the company’s existing clients. The company strengthened the account management teams, and increased the number of pre-sales consulting people in key accounts. This strategy paid off, and the company’s top five customers grew at 7.5% and top 10 grew at a rate of 4.8%. In addition, there has been a focus on large deals, with large accounts being sourced regularly in infrastructure management services and legacy system modernization. The company added 43 new clients for the fiscal.

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During the year, the company also announced the launch of its manufacturing vertical and its HCM service offering. The company also witnessed good momentum for its Workday practice—it has an advantage, as it is the only Indian origin support partner for Workday. Hexaware is also betting big on digitization. For example, in the insurance industry, a huge number of customers are modernizing their claims and policy management platforms and one of the significant portions of work is around migrating data from the old platforms to new platforms. As Hexaware has a solution that dramatically reduces the time, effort, and improves the accuracy of data migration, it is witnessing significant traction in this space. From a customer vertical point of view, the BFSI sector is the largest followed by manufacturing. Other sectors such as travel, transportation, and healthcare and insurance are approximately similar in size. Hexaware has an aggressive strategy of adding freshers and the company substantiated this by adding 1,266 freshers during the fiscal. The total headcount stood at 10,100.

2014-15

2,706

2013-14

2,367

14%

Source: DQ estimates revenue (`crore)

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Tata Technologies Tata Technologies continues to chase its dream of becoming a $1 bn company in the next few years

2013-14

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A CyberMedia Publication

—WARREN HARRIS CEO

T

ata Technologies registered a modest 10% growth in FY15. The total income of the company aggregated at `2,644 crore as compared to `2,395 crore in fiscal 2014. The biggest contributor to Tata Technologies’ revenue is the European Union which accounts for `1,072 crore. The company continues to perform better in the manufacturing domain which is its major forte and gives it most customers. During the fiscal, the lion’s share of the company’s business came from clients in the automotive sector (roughly 65%), 12% from the aerospace and defense sector, and approximately a quarter of its revenue from the industrial machinery and other sectors. In the fourth quarter, the company announced plans to augment and accelerate its organic growth with $250 mn in acquisitions over a period of www.dqindia.com

two to three years. The company also made a cautious, deliberate entrance into the Brazilian market during the fiscal and continued working on establishing a foothold in China. Tata Technologies also witnessed a change in leadership as it promoted Warren Harris to CEO and Managing Director in September after Patrick MacGoldrick retired. Harris is putting more focus on enhancing the company’s global presence and increasing revenues from different markets. Tata Technologies further strengthened its position as a provider of unique professional services and products to support and enhance Siemens PLM offerings including design and engineering, consulting solutions, and help desk. Tata Technologies increased its customer base for the full suite of Siemens PLM solutions, including NX CAD/CAM, Teamcenter, Solid Edge and Femap, among others. As a result, Siemens PLM recognized Tata Technologies as a platinum partner. Tata Technologies has been dreaming of being a $1 bn company for the last few years but it does not seem to reach its goal. However, it continues to hope for good days as the manufacturing industry picks up pace this year.

2014-15

2,644

2013-14

2,395

10%

Source: DQ estimates revenue (`crore)

July 31, 2015

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89

the dq 50

Rank Rank

0 3 8

Zensar Technologies Zensar’s double-digit profitability in FY15 was driven by strong growth in core markets and significant traction in the company’s applications business

2013-14

0 3 9

90

|

July 31, 2015

—GANESH NATARAJAN Vice Chairman and CEO

I

n FY15, Zensar Technologies did reasonably well and posted a revenue growth of 13%. The company’s three major geographies US, Europe, and Africa reported strong growth in constant currency revenue for FY15. The company’s strategy of focusing on new client acquisitions and strategic deals in core markets has started showing results and led to some good wins. FY15 particularly proved good for the company as Zensar added 11 new logos to its customer portfolio. Zensar’s applications business saw significant traction across the US and Europe and clocked 24% growth in FY15, with both the custom and package applications business doing well. The company in the year bagged new business worth nearly `190 crore in its application management services business. One of the key highlights this year

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for the company was the acquisition of Professional Access in the first half of the fiscal. The move proved profitable as Professional Access exceeded its profit targets for the year, thus contributing to Zensar’s Digital and eCommerce business, which stands at 13% of its revenue. The company’s conscious focus on increasing dual shore services with existing and new customers has boosted its Infrastructure Management (IM) portfolio. Overall, the dual shore services business witnessed a growth of 11% over FY14. Zensar Technologies also won several significant deals in the US for IM managed services business. The company continues to focus on hybrid cloud integration, end-user experience management, multi-vendor support, and managed security solutions, and is betting big on them as key drivers of growth for the infrastructure business. Over the past five years, Zensar has maintained a strong revenue growth trend, growing at a CAGR of 23%, which is higher than the industry growth average. With a strong deal pipeline, the outlook for FY16 for the company also looks extremely positive.

2014-15

2,628

2013-14

2,316

13%

Source: DQ estimates revenue (`crore)

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Iris Computers The IT distributor pulls off a stellar performance of 36% revenue growth in FY15, backed by expanding partnerships and strong momentum across all brands

2013-14

0 4 6 |

A CyberMedia Publication

—VISHAL SOPORY CEO

I

ris Computers not just sustained the growth momentum of last year, but accelerated it with a stellar performance this time, clocking 36% growth in revenues in FY15. Last year, the company saw a surge of 17% in its revenues. Iris is a distributor of computer systems and peripherals, from leading OEMs like IBM, Lenovo, HP, Canon, Dell, and so on. The good show in FY15 was backed by impressive gains across all the brands. During the year, some large orders ranging from government enterprises to large corporations helped drive growth. Delhi-based IT distributor has formed a strong presence across the country working with more than 2,500 channel partners through its 35 locations. In FY15, a key highlight was some large brands like BENQ, Philips, Huawei, and LG joining hands with the company to leverage www.dqindia.com

its relationships with its commercial enterprise channel partners. The partnership with Dell for distribution of the company’s enterprise and end-user products and solutions was another feather in the cap for Iris which is looking at further strengthening its partner network. Its acquisition by Inflexionpoint in 2013 was a major event that fueled new growth aspirations for the company. Post the acquisition, the distribution business has witnessed major growth signs. This year Inflexionpoint embarked X10 Financial Services, a new venture to tap the opportunity of channel financing to the partners in the supply chain industry through the wide network of branches of Inflexionpoint subsidiaries across the country. Iris is working closely with X10 to finance its partners. With its sound financial backup, the IT distributor is poised to compete with big names like Ingram Micro and Redington. It has set a target of becoming a `6,000 crore company in the next three years. A new internal strategy and optimal resource utilization is expected to set the stage for change as it moves towards its aim of being amongst the top three national IT distributors by 2016.

2014-15

2,573

2013-14

1,893

36%

Source: DQ estimates revenue (`crore)

July 31, 2015

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91

the dq 50

RAnk RAnk

0 4 0

Apple India Apple continues to grow exponentially in India with about 40% jump in revenues. Its extended channel has helped the company to improve its reach

2013-14

0 5 1

92

|

July 31, 2015

—MANEESH DHIR Sales Head

F

Y15 turned out to be a great year for Apple India as its consolidated revenues touched $1 bn. Its revenues for its MacBook and iPad business also registered a substantial growth of 40%. Apple’s revenue garnered through the sale of iPads, Macbook, and iMac business stood at `2,560 crore as against `1,823 crore the previous year. Apple didn’t take India seriously in the early years, but now, the country is turning out to be a judicious bet. According to CMR, the company sold 1.3 mn handsets in the country in the last fiscal as against 9.28 lakh the previous year. In the fiscal, the company launched iPad Air 2 and iPad mini 3, which witnessed an overwhelming response and high adoption in the country. In recent years, Apple tablets have seen a lot of traction in the corpowww.dqindia.com

rates in India as they are becoming mainstream among the salesforce. In addition, the revenue model through its app store helps the company to add to its turnover. The company is focusing on aggressive marketing campaigns to further strengthen its foothold. The company shows a lot of promise in FY16 and is expected to capture more market share. Apple has increased its footprint in the major cities through its own outlets which helped the company to garner more sales. Apple, however, understands the criticality of increasing its retail presence in India to achieve further landmarks in iPad and iPhone sales. That’s why the company has signed a deal with a fifth Indian smartphone distributor, Optiemus Group. Apple has taken a multi-distributor approach to tap a diverse market like India. The four existing distributors include Redington, Ingram Micro, Rashi Peripherals, and Brightstar. Apple has given Samsung a tough competition in the smartphone race and is expected to emerge as the leader in the coming few years. However, combined Android market is still far bigger than Apple.

2014-15

2,560

2013-14

1,823

40%

Source: DQ estimates revenue (`crore)

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CMC CMC had an eventful FY15, key highlights being the revenues crossing `2,500 crore milestone and its merger with the parent company TCS

2013-14

0 4 2 |

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—R RAMANAN Chairman & CEO

T

he major event for CMC in FY15 was its merger with its parent company TCS. The amalgamation is expected to further strengthen CMC’s position by enhancing its reach and improving market penetration for its solutions and capabilities. It was also a prominent year for the company for yet another reason—it crossed `2,500 crore revenues milestone in FY15. With an impressive overall performance, it registered a robust growth of 13% in the top line as compared to the previous year, with revenues standing at `2,513 crore. The strong performance was backed by the company’s ability to attain broad-based revenue growth across geographies. CMC’s growth can be primarily attributed to its customer-centric approach and a balanced portfolio of integrated services and solutions in niche areas to variwww.dqindia.com

ous businesses. Over the year, the company added 63 new customers across the world. The positive impact of the company’s strategy was seen in its revenue, which went up by 14% for the international market and 10% for the domestic market. The Systems Integration (SI) segment has been the main contributor to the revenue this time with an impressive 17% revenue growth over the previous fiscal, which was followed by the Customer Services (CS) segment. Also, the company’s software solutions and offerings in embedded systems have found increased traction in the Middle East & Africa and European markets. A key highlight this year was the setting up of a new SEZ facility at its Hyderabad campus, which is spread over about 46.33 acres. This year also saw some changes at the board level. S Ramadorai, Chairman of CMC stepped down as Director and Chairman while the Board of Directors inducted N Chandrasekaran, CEO and MD of TCS, as the Director of CMC. Moving into FY16, CMC will continue its thrust on expansion and will focus on exports of its services by leveraging wide marketing reach of TCS.

2014-15

2,513

2013-14

2,231

13%

Source: DQ estimates revenue (`crore)

July 31, 2015

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93

the dq 50

Rank Rank

0 4 2

EMC India While EMC grew at 15% in FY15, it is expected to enhance its growth in the ongoing year on account of improved market sentiments and its robust pipeline

2013-14

0 4 5

94

|

July 31, 2015

—RAJESH JANEY President

E

MC India registered healthy growth of 15% in FY15 as the company saw robust buying across verticals. The company witnessed renewed interest in enterprises as most of its customers invested in four powerful trends—namely, social networking, mobile, big data analytics, and cloud computing (SMAC). The storage giant worked in its federation model that includes EMC Information Infrastructure (EMCii), VMware, Pivotal, VCE, and RSA. This model helped the company gain customer confidence as the federated model allows it to offer integrated solutions from its sister companies. In FY15, the company continued to invest in new solutions and technologies to keep customers’ interest intact in its solutions. EMC launched solutions for enabling customers in their journey of hybrid cloud, softwww.dqindia.com

ware defined storage, as well as launched a data lake solution. In the storage space, the company placed the biggest bet on flash storage and launched XtremIO 4.0 all-flash array. As a result XtremeIQ emerged as the top-selling all-flash storage array, as per IDC, and was named a leader in the 2014 Gartner Magic Quadrant for Solid State Arrays. If IDC is to be believed, the company emerged as #1 external storage player across all four quarters with 31% market share. Its storage leadership becomes apparent with key customers such as the Govt. of India (multiple projects including UIDAI, NIC), TCS, ITC, KPIT, ICICI, BSNL, Axis Bank, HSBC, Cummins, among others. The company gained most traction in verticals such as IT-ITeS, telecom, and BFSI for FY15. In EMC’s success, its full-proof channel strategy played a key role. The company has successfully increased addressable market for its partners with cloud computing, backup and recovery systems, scaleout storage (Isilon), big data and analytics portfolio, in addition to its vast storage product line. It has initiated a 360-degree engagement with its partners.

2014-15

2,452

2013-14

2,126

15%

Source: DQ estimates revenue (`crore)

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NIIT Technologies Growth in FY15 was muted primarily due to significant decline in the revenue from the government sector

2013-14

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A CyberMedia Publication

—ARVIND THAKUR Chairman & CEO

A

s against robust 14% growth in FY14, NIIT Technologies reported a humble 3% increase in revenues in FY15. Q1 was particularly disappointing for the company. The major reason that impacted the growth was reduced focus on domestic government business, which led to a decline by 38% over the previous year. The company also encountered client specific issues in the US in the first quarter. Further, currency headwinds in Europe also impacted revenues. After an initial setback in Q1, the company reported steady improvement in both revenues and operating margins throughout FY15. In Q2, NIIT experienced healthy expansion in revenues in APAC and India on the back of execution of large orders secured during the year, increasing revenue share from the region to 21%. www.dqindia.com

Among geographies, the US expanded the most during the year representing 44% of the revenue mix. Growth in the US was a result of the expansion of the business in the BFSI segment. New customers in the US were in the insurance and travel and transportation segments whereas APAC contracts were secured in the manufacturing/distribution space. The company also substantially increased revenues in Infrastructure Management Services (IMS) which grew by 43%. NIIT successfully executed and implemented the Airport Operations Control Center at Chennai Airport. The project is a key initiative undertaken by the Airports Authority of India to improve capacity utilization, passenger throughput, and key stakeholder management for improved service. Additionally, the company made a foray into digital integration by signing an agreement to acquire a 51% stake in Incessant Technologies. In FY16, the company’s agenda will be focused around the expansion of its business across international geographies, scaling IMS revenues, and building up strength in the digital space.

2014-15

2,373

2013-14

2,305

3%

Source: DQ estimates revenue (`crore)

July 31, 2015

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95

the dq 50

Rank Rank

0 4 4

asus India asus India’s growth was fuelled by a welldiversified product portfolio and a strong retail presence across the country

2013-14

0 5 2

96

|

July 31, 2015

—PETER CHANG Regional Head—South Asia & Country Manager—System Business Group

I

n FY15, Asus India continued its growth momentum with substantial 25% increase in revenues. Its revenues zoomed to `2,234 crore from `1,787 crore in the last fiscal. The company managed to post strong growth despite challenges in the PC market primarily because of its healthy portfolio of devices in India which includes notebook computers, tablets, desktops, etc. Presence in multiple product segments acted as a cushion for Asus. With India emerging as one of the fastest growing markets for tablets and notebook computers, Taiwanese technology firm is placing huge bets on the country and has identified India as a high growth market. To increase its market share, Asus has been introducing products relevant to the Indian market. The company is also looking at strengthening its retail presence and expanding the exclusive stores to tierwww.dqindia.com

2 and -3 cities. In fact, it is looking at adding 200 new exclusive stores in 2015. With its strategy of aggressive retail expansion, the company is aiming to achieve 10% market share in notebooks in India by the end of 2015. Further, Asus is looking at setting up a research and development lab in India. Considering the government’s push on ‘Make in India’, the company is also actively considering the scope of manufacturing in India. With the new government policies, the company is seeing benefits in manufacturing devices in India. The year witnessed the company launch several new products across segments. One of the products that garnered incredible response was its notebook, ASUS EeeBook. Key highlight for the company in the fiscal was its foray into the smartphone market in the country. The company is hopeful that a large part of its revenue from India going forward will come from the newly established smartphone vertical. Looking ahead, the outlook for the company in FY16 looks upbeat as it is focused on broadening its offerings across all computing devices. It is expected to give a tough time to rivals in the space.

2014-15

2,234

2013-14

1,787

25%

Source: DQ estimates revenue (`crore)

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Compuage Infocom Compuage Infocom faced the brunt of slow demand and heavy competition in the IT distribution space with its revenues declining by 7%

2013-14

0 4 1 |

A CyberMedia Publication

—ATUL H MEHTA MD

F

Y15 has not brought enough reasons for Compuage Infocom to celebrate. The company’s consolidated revenue witnessed a downfall to `2,129 crore as against `2,275 crore in the previous year, registering a degrowth of 7%. This is in stark contrast to the company’s performance in FY14, where it had clocked a robust growth of 16%. Consequently, the company’s position in our ranking fell from last year’s #41 to #45 this year. The dip in revenues can be largely attributed to slow demand and tough competition in the IT distribution space. Over the years, Mumbai-based IT distribution company has added top brands in its portfolio, including Microsoft, Asus, Creative, EDIFIER, HP, ADATA, Kingston, Samsung, Toshiba, Linksys, Cisco, etc. With a vast number of branches, the company www.dqindia.com

has deep penetration in the country. Compuage is focused on further expanding and strengthening its presence in the country and is aggressively looking at various tier-2 and -3 cities. Considering the rising demand for smartphones in India, the company is betting big on telecom products distribution in the country. It is expecting the business to spur its growth in the coming years. The IT distributor is also working on strengthening its partner base to improve its market share and get back its growth momentum. During the fiscal, the company introduced some changes at the top level and appointed Sunil Mehta as the Chief Financial Officer. As one looks ahead at FY16, the IT distributor is likely to witness growth in the coming fiscal given its nationwide presence and strong focus on improving the partner ecosystem. Further, Compuage continues to invest in infrastructure, reach, and product portfolio—all of which should help the company yield positive results. That said, considering that IT distribution is a heavily crowded space, the company should focus on diversifying its portfolio to ensure better margins.

2014-15

2,129

2013-14

2,275

-7%

Source: DQ estimates revenue (`crore)

July 31, 2015

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97

the dq 50

RAnk Rank

0 4 6

Texas Instruments India Texas Instruments India bounces back as Asia market sees revival largely driven by the analog and embedded processing segment, which currently forms the core of its business

2013-14

0 4 9

98

|

July 31, 2015

—SANTHOSH KUMAR Managing Director

A

fter hitting a rough patch in 2013, Texas Instruments (TI) India has bounced back strongly this time. As per DQ estimates based on the overall company’s performance in the Asia market, revenues went up by 9% in comparison to the previous fiscal. The growth momentum was led by the analog and embedded processing segment. The legacy wireless products segment, that was responsible for the fall last year, continues to be a drag, yet the strong upside in the analog and embedded processing space was more than enough to offset the decline this time. The company has been taking up restructuring initiatives in the last couple of years and has also been shifting its focus on more profitable areas. This strategy continues as it builds its strength in the analog and www.dqindia.com

embedded processing business, gradually moving away from legacy wireless products. Analog and embedded processing together account for around 83% of TI’s global revenues, up from 79% in the previous fiscal. The cost saving actions TI (global) had announced in January 2014, which also involved the elimination of 1,100 jobs worldwide, is expected to be completed sometime mid this year. On the whole, the year was marked with some innovative launches and key partnerships worldwide as well as in India. Texas Instruments (Global) unveiled TI Precision Labs, known to be the electronic industry’s first comprehensive online classroom for analog engineers. In India, TI partnered with Tech Mahindra to set up a lab in Bengaluru around the Internetof-Things (IoT) concept. Recently, it celebrated its 30th year of operation in the country. The design and manufacturing company continues to face tough competition in the Asia market, especially from niche and emerging companies that serve the same markets. Yet, the company believes that its diverse product portfolio will offer an edge over its competitors.

2014-15

2,110

2013-14

1,936

9%

Source: DQ estimates revenue (`crore)

A CyberMedia Publication

|

Rank Rank

0 4 7

Canon India Canon India could not keep its growth momentum due to low demand for printers and digital imaging solutions across industries

2013-14

0 5 0 |

A CyberMedia Publication

—KAZUTADA KOBAYASHI CEO

M

ost of the IT hardware vendors especially in the printer business are witnessing a downward or stagnant trend in the market. Canon India was no different since its growth was reduced to merely 6% in FY15. Its India revenues accounted for only `2,026 crore against `1,910 crore last year. Canon just like other printer players has seen a steep decline in demand for printers in the market. Its printer business including laser and inkjet, went through slow demand in FY15. The company, however, tried to increase its range and bet heavily on inkjet printers through MFD devices. The company launched several market campaigns to spark animation into its channel and claimed to penetrate further into the rural markets of India. Canon focuses www.dqindia.com

on multiple market segments of consumer, SME, B2B, government, and commercial. Canon’s product portfolio includes copier MFDs, fax-machines, printers, scanners, all-in-ones, digital cameras, DSLRs, cinematic imaging products, camcorders, cable ID printers, and card printers. In FY15, Canon marketed over 200 contemporary digital imaging products. It has 550 primary channel partners, 14 national retail chain partners, and over 6,000 secondary retail points. Canon’s service reach went up to over 4,000 towns with 19 Canon camera service centers and 41 printer Canon Care Centers. Canon India also has 146 authorized service centers for printers and 180 camera collection points. Canon India in the fiscal witnessed a bit of restructuring as it moved Alok Bhardwaj to a larger role in APAC. The company did not appoint anyone in his place. Canon India MD is taking care of the India operations. Looking ahead, it has to look beyond its traditional business models and create new revenue streams. Plus, it has to re-evaluate its channel strategy.

2014-15

2,026

2013-14

1,910

6%

Source: DQ estimates revenue (`crore)

July 31, 2015

|

99

the dq 50

Rank Rank

0 4 8

Lycos Internet Riding on the strong growth of its digital segment, Lycos Internet delivered a good show in FY15

2013-14

0 5 4

100

|

July 31, 2015

—SURESH REDDY Chairman & CEO

L

ycos Internet, previously Ybrant Digital, exhibited good performance throughout the year with revenues going up by 17% over the previous fiscal. The digital segment was a key driver, posting nearly 23% growth in revenues. With this, its annual revenue at the end of FY15 stood at `1,957 crore and net profit at `342 crore as against the previous year revenue of `1,673 crore and net profit of `221 crore. Lycos is one of the most widely known Internet brands in the world, evolving from one of the first search engines on the web into a comprehensive digital media destination for consumers across the world. The company this year launched a new consumer products division called Lycos Life. The division is dedicated to the future of communication and information management in

www.dqindia.com

which everyday objects will be connected to the Internet, also known as ‘Internet of Things’. The company’s division LYCOS Advertising has added marquee clients over the years, including MTV, Samsung, Viacom, Maruti Suzuki, Airtel, Sony, Coco Cola, Star India, Vodafone, Samsung Electronics, Lenovo, etc. Its division LYCOS Media offers tools for blogging, web publishing and hosting, online games, email, and search. During the second quarter, the media division added direct publishers to its portfolio. Some of the key ones included Daily News, which is one of the top US news magazines; MyFoxTV, an entertainment website; and Medula Networks, a media house that operates major websites across Latin America. The company also signed a deal with Yashi, a platform focused on programmatic video advertising on large-players, targeting the geographies US, UK, Canada, and Australia. In FY16, Lycos’ outlook looks positive and it is expected to launch two products that will simplify the way people leverage Internet for their daily use.

2014-15

1,957

2013-14

1,673

17%

Source: DQ estimates revenue (`crore)

A CyberMedia Publication

|

Rank Rank

0 4 9

Supertron Electronics For FY16, Supertron is eyeing 25% growth and is targeting to reach the `2,500 crore milestone

2013-14

0 5 9 |

A CyberMedia Publication

—VK BHANDARI MD

C

ontinuing its double-digit growth spree, Supertron had another rewarding year. The company in the fiscal clocked a revenue of `1,948 crore, registering a robust growth of 24%, as compared to the industry standard of 10-12%. Its impressive performance has helped the company enter the Top 50 list for the first time. This year, Supertron joined hands with Taiwan-based TUL Corporation for the distribution of their graphic card brand ‘Powercolor’. Supertron is very optimistic about the graphic cards business in India and is aiming to tap the market with this alliance. Supertron was also appointed by Genuis, a provider of computer peripherals and smartphone accessories, as its national distributor for the Indian market. Supertron is already a www.dqindia.com

national distributor for many leading companies, including Dell, Seagate, Acer, IBM, LG, Samsung, Transcend, Digilite, Digisole, Cyber Power, Toshiba, Philips, among others. The company is focusing on opportunities in smaller towns and has opened four branches in cities like Jabalpur, Puducherry, etc. It has also opened satellite branches in Trivandrum and Rajkot. Supertron had crossed the `1,100 crore threshold in FY11 and has maintained the positive growth momentum since then. For FY16 too, the company is eyeing 25% growth and has set up a target of `2,500 crore only in the IT vertical. Supertron is Dell’s largest marketing partner in India. In FY15, Supertron received the Platinum Club Super Achiever Award from Dell. Dell, Seagate, and Acer were the major contributors to Supertron Electronics’ business. In the last financial year, Supertron had acquired the distribution rights of the companies like Asrock, TP LINK, Powercolour, Genius, and Gionee Mobile. With a strong portfolio, FY16 also looks positive for the company.

2014-15

1,948

2013-14

1,575

24%

Source: DQ estimates revenue (`crore)

July 31, 2015

|

101

the dq 50

RANk Rank

0 5 0

Polaris Consulting & Services In FY15, the bulk of revenues came from three main regions: North America contributing 56%, followed by Europe at 20%, and India chipping in 6%

2013-14

N A

102

|

July 31, 2015

—ARUN JAIN Chairman or Polaris, one of the long standing players in the BFSI products and services space, FY15 was a happening year. It now has two entities: Intellect Design Arena (ranked separately), which is its product arm and Polaris Consulting & Services, its services arm. With this bifurcation the company intends to have a more focused play in the banking and financial sector, with a mix and match of products and services. As we look at the services arm, FY15 saw Polaris embarking on a series of strategic shifts. With the new focus, it gained more clarity in the services space and sought wideranging mandates. The company says it secured 24 new client additions over FY15. Over the course of FY15, the company worked on a digital strategy that gave enough leverage to up its ante in the services business.

F

www.dqindia.com

As we look at the evolution of Polaris to what it is today, it has indeed come a long way from Polaris Software Lab to Polaris Financial Technology and now to Polaris Consulting and Intellect Design. With the new focus it will now be able to retain its niche space in the banking products and the services space. Since FY15 was the first year for the standalone services business, the company feels the larger dividends will percolate only in FY16 as the fruits of the labor will become evident. The company is bullish about its future in the BFSI space and having spent `800 crore on its product development, it needs to balance out its services and product business. Geo-expansion and diversification might help the company in FY16 to expand the top line. While the overall outlook for Polaris remains good, but at the same time one needs to factor in the IT adoption in the BFSI space. Any slowdown will impact the growth and clearly here further deepening domestic mandates will help.

2014-15

1,894

2013-14

NA*

Source: DQ estimates revenue (`crore) (*Previous year ( FY14 `2,424 crore) cannot be comparable with FY15 financials consequent to demerger of product business during the current year)

A CyberMedia Publication

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The Next 50 RANK

COMPANY

PAGE NO.

RANK

COMPANY

PAGE NO.

51

Persistent Systems

104

76

TAKE Solutions

119

52

Infinite Computer Solutions

104

77

Adobe Systems India

120

53

Sonata Software

105

78

Aurionpro

120

54

Ricoh India

105

79

Juniper Networks

121

55

Neoteric Infomatique

106

80

Cybage Software

121

56

Symantec India

106

81

R Systems International

122

57

ITC Infotech India

108

82

VMware

122

58

NetApp India

108

83

CORE Education & Technologies

123

59

SFO Technologies

109

84

D-Link

123

60

3i Infotech

109

85

Fujitsu India

124

61

Sify

110

86

AMD India

124

62

Seagate India

110

87

Intellect Design Arena

125

63

CSS Corp

111

88

Fortune Marketing

125

64

Zicom Electronic Security Systems

111

89

Trigyn Technologies

126

65

Geometric

112

90

Accel Frontline

126

66

Epson India

112

91

LG India

127

67

Mastek

113

92

Team Computers

127

68

Xerox India

113

93

CA Technologies India

128

69

Birlasoft

116

94

RS Software

128

70

NIIT Limited

116

95

Sasken Communication Technology

129

71

eClerx

117

96

Zylog Systems

129

72

OnMobile Global

117

97

Subex

130

73

AGC Networks

118

98

Nucleus Software

130

74

Tata Elxsi

118

99

Huawei India

131

75

Intex Technologies

119

100

SQS India BFSI

131

|

A CyberMedia Publication

www.dqindia.com

July 31,2015

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103

the dq 100

Rank Rank

0 5 1

Persistent Systems

M 2014-15

1,882

2013-14

1,669

12%

Source: DQ estimates revenue (`crore)

I

0 5 2

1,737

2013-14

1,733

Source: DQ estimates revenue (`crore)

104

|

July 31, 2015

ecosystem, covering a spectrum of platforms and technologies to drive digital transformation. The company won some notable deals in FY15; in the last quarter itself the company added as many as 51 clients. One major project it bagged was from an international oil and gas inspection and maintenance services company to develop an Internet of Things-based solution. The company was also selected by an Australian bank to develop customer-centric self-service multi-channel offerings as part of their digital transformation. Persistent also attained Oracle PartnerNetwork specialization for Oracle Identity Governance and Oracle Access Management, the only Oracle partner to achieve both.

Infinite Computer Solutions

Rank Rank

2014-15

aintaining a double-digit growth, this year Persistent’s revenue stood at `1,882 crore, up 12% from last year. It was a landmark year for the company as it completed 25 years of existence. The company’s key focus this fiscal seemed to be on expansion through strategic acquisitions. Persistent acquired some assets of a Pune-based web discovery solution provider Hoopz Planet Info and made a strategic investment in an IoT start-up Altizon Systems. The company saw excellent traction in the enterprise segment and is focused on strengthening its partner

0.3%

nfinite Computer Solutions is a global provider of software solutions in the areas of IT services, product engineering, and mobility and messaging products and solutions. With a marginal 0.3% increase in revenue over the previous fiscal, the company just managed to stay on the positive growth side. The last quarter was exceptionally challenging with numbers significantly lower than Q3. It attributes the downfall to significant reduction in support fee for its core messaging platform over that period. On a positive note, the company added 34 clients during the year. A www.dqindia.com

significant one being a two-year, $30 mn plus, platform development deal with a healthcare client. Infinite also bagged a large EMS deal with one of its existing financial services client. During the year, the IT solutions provider added multimedia messaging capabilities to its Enterprise Messaging Service (EMS). In the second quarter, the company announced the launch of ‘Rapid NOW’, an ERP specifically for small and medium textile organizations. According to one of its latest performance reports, Infinite plans to realign and focus on positioning itself as a ‘platformization’ company by enhancing current platforms and building new ones. A CyberMedia Publication

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Rank Rank

0 5 3

Sonata Software

W 2014-15

1,682

2013-14

1,566

7%

Source: DQ estimates revenue (`crore)

I

0 5 4

1,637

2013-14

1,048

56%

Source: DQ estimates revenue (`crore) |

bility and analytics that has helped it build partnerships with global companies in their digital initiatives. Sonata’s ability to deliver digital readiness solutions has won it new accounts in FY15 and this along with its strategy of scaling existing customers with its next generation solutions paid off well. Of the total revenues in FY15, exports held the lion’s share contributing 92%. Across geographies, US and Canada formed the most prominent locations for Sonata with 53% of the revenues coming from there. A key highlight was the acquisition of Rezopia, a SaaS-based and end-to-end reservations, contracts, operations, and distribution management systems platform for travel providers.

Ricoh India

Rank Rank

2014-15

ith strong IT services growth, Bengaluru-based Sonata Software has managed to sustain its growth momentum this time as well. The company has registered a 7% growth in revenues in FY15 over the last fiscal with its revenue standing at `1,682 crore as against `1,566 crore in the previous year. This increase in revenue is backed by a strong underlying growth strategy that focused on two key verticals, travel and retail and distribution in the enterprise IT side. The company’s focus over the last fiscal, and over the last couple of years, has largely been on new age technologies like omni-channel mo-

A CyberMedia Publication

n FY15, Ricoh India continued its success story by posting a strong growth of 56% YoY. The boost in top line was primarily backed by growth in core products and IT services segment. The company won several highvalue business contracts during the fiscal, a large part of which came from the government. Major deals bagged in the government sector include a five-year order from the Department of Posts worth about `1,370 crore. As a part of the contract, Ricoh will modernize approximately 129,000 post offices through automation. Another big win during the year was a `200 crore project from the Department of Education, Delhi www.dqindia.com

Government for the implementation and maintenance of ICT solutions in 1,100 schools across Delhi. Apart from this, Ricoh is handling government to citizen implementations for various state governments. Noteworthy ones amongst them include Tamil Nadu Health project, Karnataka Panchayti Raj project, Chhattisgarh cloud-based tablet solution, Assam Govt Education projects, etc. FY15 also saw Ricoh India strike a strategic partnership with HCL to enter the Indian education space. Looking ahead, Ricoh is upbeat about its growth and increased visibility in the Indian market, where IT services is expected to be a growth engine in the coming years. July 31, 2015

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105

the dq 100

Rank Rank

0 5 5

Neoteric Infomatique

M 2014-15

1,620

2013-14

1,500

8%

Source: DQ estimates revenue (`crore)

Symantec India

I

Rank Rank

0 5 6

2014-15

1,534

2013-14

1,420

Source: DQ estimates revenue (`crore)

106

|

July 31, 2015

already has distribution partnerships with leading vendors such as Gigabyte, Corsair, HGST, Logitech, LITEON, ADATA, etc. Apart from this, Neoteric joined hands with RIVACASE as the exclusive national distributor for its range of ‘Protective Carrying Solutions.’ The other major deal was the appointment of Neoteric by Linksys as its national connectivity partner for its channel business. Emerson Network Power also appointed the company as a distributor for its small and medium UPS product portfolio. With several new initiatives and partnerships underway, the outlook for Neoteric in FY16 is positive, with the company aiming for a major growth boost.

umbai-based Neoteric Infomatique’s revenues for FY15 stand at `1,620 crore, showing an increase of 8% over the previous year. The company’s growth was backed by its PC component business, which was the major revenue contributor. The key highlight of the year was the company’s strategic alliance with Prime ABGB. As a part of the agreement, Prime ABGB moved its operations under Neoteric and the company’s founder Gulbir Bhatia joined Neoteric. With this merger, Neoteric is expecting to add several new vendors to its distribution portfolio in the coming months. The company

8%

t was back to growth for Symantec India in FY15. After a disappointing year in FY14, where the company’s revenues had declined by 10%, the company has managed to get back on the growth track with 8% hike in revenues. The security solutions provider clocked a revenue of `1,534 crore against `1,420 crore in the previous fiscal. India continues to be an important market for Symantec. The pivotal role played by the Indian market can be gauged from the fact that the company’s 35% of engineering talent is based in the country. Globally, FY15 was a transformative year for Symantec, as the company announced its unified security www.dqindia.com

and information management strategies, delivered more than 50 products, and made the decision to separate Symantec and Veritas into two standalone companies. The company also observed significant traction for endpoint protection, data loss prevention, NetBackup appliances, and NetBackup software. Symantec India witnessed some movement at the leadership front with the appointment of Shrikant Shitole as Managing Director for its enterprise security business in India. Apart from this, Symantec partnered with Nasscom for building cybersecurity skills in India. This partnership will enable the industry to map existing and future skills requirements and plug its demand-supply gap. A CyberMedia Publication

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the dq 100

Rank Rank

0 5 7

ITC Infotech

F 2014-15

1,458

2013-14

1,277

14%

Source: DQ estimates revenue (`crore)

T

0 5 8

1,438

2013-14

1,284

Source: DQ estimates revenue (`crore)

108

|

July 31, 2015

year, particularly in Australia, has been successful and through a combination of partner driven initiatives as well as direct sales approach has seen good growth during the year. Further, ITC Infotech expanded its domestic footprint and inaugurated offices in Gurgaon and Pune. The company also has plans to set-up a large development center in Noida to augment its delivery capabilities. Apart from this, the company strengthened its global workforce during the year, which now stands at more than 6,700 people. The company is likely to strengthen its business approach in synchronization with the 4D strategy of focus on domain, data, digital, and differentiated delivery.

NetApp India

Rank Rank

2014-15

Y15 proved to be another good year for ITC Infotech, with the company recording revenue of `1,458 crore, up by 14% as against last year’s `1,277 crore. The good show was reflective of some strategic changes that seem to have paid off. The company acquired 90+ clients and saw good traction in repeat business from strategic customers. A key highlight for the company was its partnership with Asigra, which will enable it to offer niche cloud-based solutions, fully automated and compliant backup as well as recovery backup. The company’s expansion in the Asia Pacific region in the previous

12%

he data volumes growing at 50% rate is auguring well for companies like NetApp. The company says that it is the only vendor to gain market share in CY14. What drove the growth was aggressive consumption of storage from verticals such as BFSI, IT/ITeS, and manufacturing. NetApp leveraged on the fact that almost every industry in India has become data-centric; organizations have become dependent on IT to deliver products, services, and to interact with various stakeholders. Over the year, NetApp assisted customers in their move to Software Defined Storage (SDS) and cloud computing architectures through the

www.dqindia.com

Clustered Data ONTAP Storage Operating System—a data management platform enabling unrestricted, secure movement of data across public and private clouds. The company also looked at making intelligent and innovative storage solutions and harped on virtualization, cloud, business applications, big data, and deepened its expertise in this part of the world. With the government’s focus on ‘Digital India’, NetApp believes special-purpose clouds and applications will emerge to focus specifically on connecting devices and machines. The company also aggressively pitched on its hybrid cloud offering for enterprises planning to integrate cloud storage resources. A CyberMedia Publication

|

Rank Rank

0 5 9

SFO Technologies

S 2014-15

1,370

2013-14

1,200

14%

M

0 6 0

1,344

2013-14

1,308

3%

Source: DQ estimates revenue (`crore) |

gineering. The engineering services business had a turnover of about `250 crore with an operating profit between `75 crore and `80 crore. The company has a global presence with front-end operations in all continents and the products and services are targeted at technology fields as diverse as embedded software, middleware, applications, digital electronics, RF & wireless, wire harness, power supplies, fiber optics & optronics, and mechanical/plastic packaging. With the opening up of defence production to the private sector and with the government’s Make in India initiative gaining momentum, SFO is well poised to attract many giants in the aerospace and defence segments to partner with them in the future.

3i Infotech

Rank Rank

2014-15

FO Technologies, the flagship company of Kochi-based diversified business conglomerate NeST Group, marked a growth of 14% in FY15 with its revenues standing at `1,370 crore compared to `1,200 crore in the previous year. The company employs about 3,500 people across its facilities located in Trivandrum, Kochi, Bengaluru, Mysore, and in the US. According to reports, the company’s engineering services business, which operates in the areas of manufacturing services, products and technologies, engineering and software, and systems integration, is being sold out to QuEST Global En-

A CyberMedia Publication

id-sized IT services company 3i Infotech’s troubles continued this year as well. For the fourth quarter of FY15, the company reported net loss of `396 crore as compared to loss of `300 crore in the corresponding quarter last year. Overall though the company managed to remain on the positive side with meagre 3% growth. Though the company is trying to get back on the growth path, the only positive news for the company is that its total debt in FY15 has come down to `2,655 crore from `3,815 crore in FY14. Over the past decade, the company binged on foreign currency conwww.dqindia.com

vertible bonds to make several acquisitions but the strategy backfired and the company failed to integrate the acquisitions and is now struggling to pay off its creditors. According to the results, the company has sold two assets this year, one in second quarter and another in the third quarter of FY15. There are also reports that the company has put most of its assets on sale and has been struggling to find buyers for any of its businesses. Meanwhile, ICICI Bank which had a substantial stake in the company has trimmed down its shares from 18.7% in FY14 to 6% in FY15. The senior leadership also saw some movements with Charanjit Attra, the Executive Director and the CFO stepping down. July 31, 2015

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109

the dq 100

Rank Rank

0 6 1

Sify Technologies

A

2014-15

1,286

2013-14

1,046

23%

Source: DQ estimates revenue (`crore)

D

0 6 2 1,210

2013-14

1,163

Source: DQ estimates revenue (`crore)

110

|

July 31, 2015

Meanwhile, cloud and managed services grew by 21% and here the company added 41 customers. Application integration services saw 4% growth; this business signed the first end-to-end SAP led total outsourcing deal for a major CPG company. The technology integration services secured the biggest growth of 69% and this business added more than 110 new customers under network integration, security & DC, and unified communication services. The company was able to synergize its competencies across data and communications and leveraged on hot areas like cloud and morphed into an integrated technology operations provider.

Seagate India

Rank Rank

2014-15

s we look at the year went by, Sify played the art of sustaining game during FY15. Its focus on services under Sify 3.0 gained traction with good contracts realizations. The one from a global automobile company and an Indian automotive component manufacturer for WAN outsourcing are some big wins. The telecom vertical achieved a major milestone by connecting more than 27,000 locations for the Department of Post. This division grew by 30%. In tandem, the datacenter revenues grew by 4% and 52 new clients were acquired across verticals including BFSI, ITeS, retail, and manufacturing.

4%

espite the increasingly tough competition in the storage solutions space, Seagate India has managed to bounce back on a positive growth track this time with revenue growth of 4% over the last fiscal. This brings in a sigh of relief for the company that according to DQ estimates saw a 9% decline in its revenues in the last fiscal. Exponential growth of data coupled with high priority on backup and disaster recovery solutions is propelling the demand for storage solutions worldwide, as well as in India. At CES 2015, Seagate launched Seagate Seven and Seagate Wireless. Seagate Seven is the world’s

www.dqindia.com

slimmest 500GB hard drive with a depth of 7mm. Cloud-based storage solutions are also coming out to be a key growth driver. India continues to be a key market for Seagate as the company expects huge uptake in demand for storage. The company is quite bullish on the SMB sector and is bringing out solutions well aligned to their unique business needs. Also the Digital India campaign is expected to increase mobile penetration massively, in turn accelerating demand in this space. Seagate will be focusing on investing in its storage product portfolio. In India, it plans to work more closely with its partner network and continue making strategic investments in higher capacity storage and new technologies. A CyberMedia Publication

|

Rank Rank

0 6 3

CSS Corp

I 2014-15

1,198

2013-14

1,080

11%

Source: DQ estimates revenue (`crore)

D

0 6 4

1,108

2013-14

926

20%

Source: DQ estimates revenue (`crore) |

support, cloud migration, and retail solutions. Tech support is a crowded alley, but CSS Corp has upped its ante in this space through a well-balanced strategy. This was reflected in accreditations from Forrester, Gartner, and Nelson Hall. For instance, Nelson Hall placed the company in the top spot in the ‘Customer Management’ category. The road ahead augurs well for the company and it is expected to augment its competencies in technology, IP, and processes. In FY16, CSS Corp is expected to broaden its competitive advantages, and invest in technology, IP, processes, and growth services cutting across many industries and throughout the customer lifecycle.

Zicom Electronic Security Systems

Rank Rank

2014-15

nfrastructure and geo expansion topped CSS Corp’s agenda during FY15. It launched a new 45,600 sq. ft center in Chennai. The company appointed Chris Rezendes as EVP and Chief Sales Officer and David McDougall, joined as the company’s EVP and Chief Business Officer. With these appointments the company intends to deepen its client mandates and create a more focused strategy. During the year, it secured 13 new wins and most of the clients are from Internet-related services, financial services, and mobility solution providers. In terms of service expansion, the company launched new market segments such as premium tech

A CyberMedia Publication

uring FY15, Zicom scored a number of milestones that helped the company achieve an impressive 20% growth over the last year’s revenues. The fire security business of the company in the Middle East conducted under the two flagship subsidiaries, Unisafe Dubai and Phoenix Qatar, continued with its improved performance, despite slump in the global crude prices. The Gulf fire safety business has contributed 60% to the top line of the company. However, the working capital deployment for the projects still remains a major concern. Zicom SaaS also performed exceedingly well with continued flow www.dqindia.com

of orders from banks for ATM surveillance and housing societies. The company is positive that the segment will further grow in the coming years. The company recently entered into a distributor agreement with Biometronic Technology, a company engaged in the manufacturing of products, equipment, accessories, spare parts, and software based on iris recognition algorithm of IriTECH USA. The company also received the first pilot order for its iris technologybased biometric reader for the PDS distribution scheme of the Andhra Pradesh government. It expects this business to grow in the current year, keeping in mind the government’s desire to implement various financial inclusive schemes. July 31, 2015

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111

the dq 100

Rank Rank

0 6 5

Geometric

A

2014-15

1,106

2013-14

1,095

1%

Source: DQ estimates revenue (`crore)

I

0 6 6

1,078

2013-14

880

Source: DQ estimates revenue (`crore)

112

|

July 31, 2015

and Product Lifecycle Management (PLM) landscape. Geometric also inaugurated a new facility in Pune to mark the 20th anniversary of its incorporation after separating off from Godrej & Boyce to become an independent company. Another key highlight for the year was 3D PLM Software (3D PLM), a joint venture between Geometric and Dassault Systèmes announcing the creation of a subsidiary, 3D PLM Global Services. This is expected to enhance Geometric’s revenue in the near future. The company is hopeful that the improvement in deal pipeline will also have a positive impact on revenues in FY16.

Epson India

Rank Rank

2014-15

fter witnessing a decent 7% hike in top line in FY14, engineering services company, Geometric faced a setback this time with revenue growth slipping to a meagre 1%. The dismal performance in the last quarter was responsible for the slide in revenues. The fall was attributed to sharp decline in the Euro and reversal of revenues on account of issues arising from ERP switch over. The company signed deals worth `57 crore in FY15. A prominent one was the application maintenance deal it signed with Volvo Cars, Sweden covering major applications from computer aided design (CAD)

23%

t was another year of strong all-round growth for Epson India. The company reported a CAGR of 20+%, which it has continuously maintained for the last several years. At an overall level, Epson is now the #1 brand by value market share in all the key categories it operates in, ie, inkjet printers, projectors, dot matrix printers, and POS printers. The key reason for growth at an overall level is a very strong consumercentric approach pervading through the organization. Moreover, its robust and loyal channel network also helped. Segment wise, its L and M Series InkTank printers provided customers high value and continued to www.dqindia.com

shake up the inkjet printer market. Lowest printing costs ever of 12 paise for black and white and 25 paise for color was appreciated by segments across the board including commercial, corporate, and home. The company also saw extremely strong consumable sales thanks to low cost and high demand for genuine ink bottle for InkTank printers. As per CMR, Epson’s value market share climbed from 44% to 51%, whereas HP came down further to 33%. On the projector side, as per CMR, (Value share as per CMR—H1 FY 2014-15), Epson clocked a market share of 23% and remains the #1 projector brand in India. A CyberMedia Publication

|

Rank Rank

0 6 7

Mastek

F

2014-15

1,030

2013-14

910

13%

Source: DQ estimates revenue (`crore)

F

0 6 8

1,010

2013-14

989

2%

Source: DQ estimates revenue (`crore) |

American market. With this demerger, Mastek will handle the non-insurance business while the new entity Majesco will handle the insurance business. The company signed an agreement with Agile Technologies to acquire its insurance industry focused IT consulting business. The transaction is expected to close in the second quarter of 2015. The company’s total client base stands at 153 including customers from Agile Technologies’ acquisition. The company also announced its plans to merge Cover-All Technologies with Majesco in a 100% stock for stock transaction. With this transaction, the company is hopeful of creating a great positioning in the market place for its insurance business.

Xerox India

Rank Rank

2014-15

Y15 proved to be a milestone year for Mumbai-based Mastek as its revenue crossed the `1,000-crore mark for the first time in its history. The company posted a robust growth of 13% with revenues climbing to `1,030 crore from previous fiscal’s `910 crore. Although, the overall year proved to be good for the company, its fourth quarter earnings were quite disappointing. Mastek continued to make strategic changes with respect to its insurance business. It demerged its insurance products and services business into a new company, followed by two key acquisitions in the insurance sector to address the opportunities in the North

A CyberMedia Publication

or FY15, as per Dataquest estimates, Xerox India’s revenues stood at `1,010 crore as compared to FY14 revenue at `989 crore, with the company witnessing a modest growth of 2%. Globally, services contributes to over 56% of the company’s revenues. However, in India it is a combination of digital printing, office printing, and document management services that is driving the business growth for the company. That said, the services business is growing much faster at 20-30%, whereas the product business is growing at a single digit of 4-7%. The company is eyeing further www.dqindia.com

growth in the segment and expects over 50% of its business mix in India to come from the services sector in the next five years. To this end, the company is in the process of growing its services business in the country with new services such as Document Transaction Processing Services (DTPS). On the partner front, Xerox has strengthened and consolidated its partner base across the country and has about 200 active channel partners. Further, the company is looking at offering its services to the SMEs through a lease-rental model, under which it would offer products on lease or rent and offer managed services. July 31, 2015

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113

the dq 100

Rank Rank

0 6 9

Birlasoft

B 2014-15

995

2013-14

939

6%

Source: DQ estimates revenue (`crore)

O

0 7 0

957

2013-14

951

Source: DQ estimates revenue (`crore)

116

|

July 31, 2015

cle, IBM, HP, SAP, etc. Birlasoft’s portfolio of services includes enterprise application services, custom application services and specialized services like testing, analytics and mobility. The company is also focusing on bolstering its capabilities in the emerging areas of cloud and analytics. Apart from this, the company has won an award in the ‘Best Analytics Solution Provider in Predictive Modelling’ category at Big Data & Business Analytics Awards organized by the World Brand Congress. Birlasoft is currently in an interesting growth phase and the outlook for FY16 also looks upbeat, given its robust portfolio of services and clients.

NIIT Limited

Rank Rank

2014-15

irlasoft, a part of $1.6 bn diversified CK Birla Group, clocked a robust growth of 6% in FY15. The IT services provider has been on a steady growth path and boasts of a global clientele that includes several Fortune 500 companies across the banking and financial services, insurance, manufacturing, and healthcare sectors. During the fiscal, the company appointed Anjan Lahiri as the Chief Executive Officer of its global IT services to steer the next phase of growth for the company. Over the years, the company has established partnership with leading companies, including Microsoft, Ora-

1%

verall, the year was flat for IT training solutions firm NIIT Limited as it clocked a marginal growth of 1%. In FY15, the majority of the company’s revenue came from the Corporate Learning Group (CLG), which formed 51% of the total business for NIIT. School Learning Solutions also performed well with the company registering an order intake of `622 mn during the year. Further, it added 455 schools during the fiscal. The company is expecting further growth from this segment. In line with last year, IT training continued to remain muted, and was the www.dqindia.com

key reason that limited the growth. Further strengthening its China operations, NIIT in the third quarter entered into an MoU with Guian New Area, the capital city of Guizhou province, China, to offer programs in IT with special focus on big data. One of the key deals that the company won during the year includes a three-year contract to provide managed training services to Vestas Wind Systems, a leading global wind energy company headquartered in Aarhus, Denmark. Looking ahead, the company is eyeing huge potential in global corporate training outsourcing and career skills training and expects these areas to drive the next phase of growth. A CyberMedia Publication

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Rank Rank

0 7 1

eClerx

W 2014-15

942

2013-14

841

12%

Source: DQ estimates revenue (`crore)

D

0 7 2 917

2013-14

865

6%

Source: DQ estimates revenue (`crore) |

mained muted, the company recorded stellar 44% YoY revenue growth for emerging clients. With about 8,500 employees, the company today serves a diverse global client base, including the world’s leading financial services, broadband, cable and telecom, eCommerce, industrial manufacturing and distribution, software, media and entertainment, and travel companies. In line with its growth strategy, the company in the fiscal bought CLX, an Italian company specializing in creative and digital marketing services for the retail and luxury goods sector in Europe. The acquisition is aimed at strengthening its client and employee presence in Europe.

OnMobile Global

Rank Rank

2014-15

ith double-digit growth of 12%, eClerx is a new entrant in the top 100 list. For FY15, the company posted revenues of `942 crore as against `841 crore in FY14. During the fiscal, the company’s cable and telecom business saw spectacular growth. eClerx also witnessed traction for its digital marketing business backed by the demand for content and commerce, and data management. The company saw the largest number of new logo acquisitions in this segment. Overall, it added 24 new clients to its portfolio during the fiscal. Interestingly, although the growth in the top five clients re-

A CyberMedia Publication

espite adverse currency movements impacting the quarterly performance, OnMobile Global, the mobile music offering provider, managed to pull off a 6% YoY growth in FY15. This brings it to #72 in the Top 100 rankings this time. The company’s international business (that accounts for nearly 76% of the total revenues) saw increased momentum this year with Q4 revenues going up by around 14% on a YoY basis. Amongst developed markets, Europe registered a whopping 53% growth in the fourth quarter as compared to the corresponding quarter in the previous fiscal. In the Indian market, FY15 saw Onwww.dqindia.com

Mobile renewing contract for SMS, WAP, and USSD services with a leading operator and becoming the exclusive caller ring back tone partner to Tata Teleservices. The company also witnessed some new appointments in FY15, with Sanjay Baweja coming in as an independent non-executive additional director and Praveen Kumar taking over as the CFO. Recently, OnMobile Global saw its share price surge after it secured a multi-year partnership renewal with Movistar in Latin America for its service Ringback Tones. Going ahead, the company is hopeful that its product development initiatives, some of which are planned to be deployed in this financial year will yield good results. July 31, 2015

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117

the dq 100

Rank Rank

0 7 3

AGC Networks

T 2014-15

888

2013-14

776

14%

Source: DQ estimates revenue (`crore)

T

0 7 4

853

2013-14

775

Source: DQ estimates revenue (`crore)

118

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July 31, 2015

AGC Networks recorded significant growth from the Middle East and Africa market in the fiscal. It won major projects for implementing cybersecurity solutions for three leading banks across Kenya and the Middle East. This year also saw some changes at the board level with the company approving the appointment of Jangoo Dalal as an Additional Director. Going forward, AGC Networks is hopeful that its new office in Philippines and anticipated opening up of opportunities in Singapore and ASEAN will yield good results. Though India remains central to the company’s strategy, it is also focusing on increasing revenue contribution from international markets.

Tata Elxsi

Rank Rank

2014-15

he positive impact of AGC’s customerfocused strategy has started reflecting on the firm’s performance. In FY15, the company witnessed a robust growth and reported a 14% increase in its revenues from the last fiscal. The company’s growth was backed by notable wins from across the globe. In India, AGC bagged the project for call center application services for an MNC insurance company. The company also won a project on dynamic services on IVR for the first private mobile operator in Nepal and a unified communications deal from one of the largest banking organizations headquartered in Atlanta, US.

10%

ata Elxsi, the IT software products company, showed a good overall performance throughout the year, posting positive returns on a QoQ basis, except in the first quarter. The impressive return of 10% in FY15 has led to an increase in investor confidence that has been evident from the company’s surging share prices of late. In fact, its fourth quarter results were better than what analysts had predicted and it is hence proving to be an attractive pick for potential investors. The company’s embedded product design segment accounted for lion’s share in the revenue, with 79% coming from the segment.

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The Tata subsidiary launched some innovative products throughout the year. It introduced a globally deployable RDK suite called ‘Prime,’ which accelerates deployment of interactive TV applications for MSOs. This has helped the company in expanding the reach of its RDK-based solutions to the global community. The year also saw the company partnering with academic institutions. Towards the end of the year Tata Elxsi launched ACTIV@TE in association with Sree Chitra Thirunal (SCT) College of Engineering, which is an academic collaboration and talent incubation program to develop engineering students. In November 2014, the company appointed Ganapathy Subramaniam as the Chairman of the board. A CyberMedia Publication

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Rank Rank

0 7 5

Intex Technologies

I 2014-15

835

2013-14

726

15%

Source: DQ estimates revenue (`crore)

T

0 7 6

799

2013-14

815

-2%

Source: DQ estimates revenue (`crore) |

In fact, the company claims to have reached the mark of `4,000 crore in overall revenues in FY15, of which a major chunk of 70% came from the mobile phones business. For the next financial year, Intex Technologies is targeting a total revenue of `9,000 crore, out of which `7,500 crore is expected to come from the handset business. The company has over 6,000 employees currently and as per published sources, it holds about 7% market share across domestic manufacturers. Going ahead, the company is looking at grabbing a bigger pie of the security and surveillance solutions market, although its smartphone segment is expected to lead the growth.

TAKE Solutions

Rank Rank

2014-15

ntex Technologies, the IT accessories, mobile phones and electronic products company, saw a hike of 15% in its IT business revenue as against the previous year, with revenues standing at `835 crore. This amount excludes the revenue from segments including mobile handsets, TVs, etc. The company made its foray into the burgeoning security and surveillance solutions in the previous year, by introducing a range of CCTV cameras and digital video recorders (DVR) targeted at enterprise customers. The prudent move seems to have paid off well this time. Intex has been witnessing most of the growth momentum in its smartphones and electronics segments.

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he slide continued over FY15 as well, but the company says that the revenue growth is not comparable to FY14 due to discontinuation of non-core businesses, primarily in the supply chain management vertical in FY15. So clearly for FY15, the emphasis was more on getting the numbers back to the pink. TAKE operates in a niche space across two verticals, life sciences and supply chain management. In FY15, revenue contribution from the life sciences vertical increased from 52.6% to 64.3%, which was in line with the strategy to emphasize on the life sciences business envisaged at the start of FY14. Revenue conwww.dqindia.com

tribution from the US also increased from 59.8% in FY14 to 70.4% in FY15. Despite the revenue dip, the company was able to post a net profit of `699 mn with healthy growth of 20.5% in FY15. So this clearly made the investor and shareholder confidence intact in this company. The company is expected to stabilize its growth in FY16 as its US revenues are already seeing an uptick. This augurs well for the company, as it will be able to considerably deepen the market in FY16. But much also depends on the IT spending patterns in the life sciences vertical and any overall slowdown will adversly impact its revenues going forward. July 31, 2015

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119

the dq 100

Rank Rank

0 7 7

Adobe Systems India

I

2014-15

796

2013-14

690

15%

Source: DQ estimates revenue (`crore)

A

0 7 8

737

2013-14

649

Source: DQ estimates revenue (`crore)

120

|

July 31, 2015

it is the second largest in the APAC region after China, due to high adoption of smartphones in India. With more and more Indian enterprises going digital, Adobe Marketing Cloud is expected to witness high demand. The company counts names such as HDFC Life, iYogi, Sterling Holidays, ShopClues, PayBack, Jabong, and MakeMyTrip as its customers in this segment. Given the government’s huge thrust on digital technologies, Adobe sees immense opportunities in the country as every government to citizen interaction requires forms, and Adobe’s PDF format is a preferred and known technology format in making the digitization of documents possible.

Aurionpro

Rank Rank

2014-15

ndia is an extremely strategic market for Adobe as over one-third of Adobe’s R&D is done out of India, with the Indian R&D center filing more than 300 patents till date. FY15 was a pretty good in terms of growth for the company as its revenue hiked by 15%, reaching `796 crore. The company’s rank has gone up from #93 in the previous year to #77 in FY15. Adobe is trying to make India its largest market for enterprise business, led by its digital marketing focus. The company’s Adobe Marketing Cloud is a key product for leading the digital strategy for Adobe. While revenues from the digital marketing segment in India is small,

14%

urionpro, a provider of enterprise-scale software and services, is a new entrant in the DQ Top 100 ranking. Overall, the company did reasonably well during the fiscal and recorded a healthy growth of 14%. In terms of geography, US contributed to 40% of the company’s revenue, followed by India contributing 25%. 2015 proved to be an eventful year for Aurionpro as it completed the merger of Intellvisions Software. The acquisition is expected to help the company strengthen its digital innovation offerings. The year saw Aurionpro enter several strategic partnerships. The www.dqindia.com

company partnered with Inspyrus to accelerate implementation of enterprise-scale accounts payable solutions. It also signed a strategic agreement with ForgeRock to strengthen its enterprise security practice. Further, Aurionpro inked a distributor and implementation partner agreement with an RFID vendor in the Middle East, TrackIT Solutions, to make an immediate regional impact. During the fiscal, the employee count rose to 1,344 as against 1,259 at the beginning of the year, a gross addition of 85 employees. To sustain the growth momentum, the company is focusing on investing on new product development and expanding existing product capabilities. A CyberMedia Publication

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Rank Rank

0 7 9

Juniper Networks India

J

2014-15

679

2013-14

709

-4%

Source: DQ estimates revenue (`crore)

F

0 8 0

670

2013-14

582

15%

Source: DQ estimates revenue (`crore) |

its organization into a One-Juniper structure which includes consolidating each of the company’s research and development and go-to-market functions to reduce complexity, increase clarity of responsibilities, and improve efficiency. As a result of these changes, the company’s consolidated business is considered to be one reportable segment. The company also witnessed leadership changes during the year. In India, Ashish Dhawan was appointed as the Managing Director for Juniper India & Saarc operations after Ravi Chauhan, the former MD, resigned whereas Mrityunjay Kumar was appointed as the Country Director, Enterprise and Channel Business, IndiaSaarc.

Cybage Software

Rank Rank

2014-15

uniper Networks India had a tough time in sustaining its growth in FY15 and its revenue saw a drop of 4%. To get back the growth momentum, Juniper is eyeing new opportunities brought in by exponential growth of mobile Internet and cloud computing. The company unveiled a set of new products to capitalize on these trends. To this end, the firm announced a virtualized version of its flagship MX Series 3D Universal Edge Routing platform. Further, the firm expanded its software defined networking portfolio with new software and hardware, including the NorthStar controller. The company in FY14 had realigned

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Y15 proved out to be a good year for Cybage Software and it managed to secure its spot with an impressive 15% revenue growth. Its revenue in FY15 stood at `670 crore as against `582 crore in FY14. Over the years, Cybage has marked its presence in diverse industry verticals such as media and entertainment, travel and hospitality, retail and distribution, healthcare and life sciences, and telecom. It is focusing on building key partnerships to fuel further growth. FY15 saw the company enter three key partnerships—CloudBees Gold Partner in the ALM space; Rackspace reseller partnership in the cloud zone; www.dqindia.com

and Acquia Drupal Community-level partnership in the CMS area. Aimed to stay ahead in software development, the company is focused on adopting scientific Application Lifecycle Management methodologies. This year, the company also launched a new vertical focused exclusively on the hi-tech industry to boost its brand in the product engineering space. To expand its geographic presence, the company opened new sales offices in Massachusetts, Boston, and Singapore. Cybage was also rated as a leader in the ‘Enterprise Software’ and ‘Consumer Software’ categories of ‘Outsourced Software Product Development’ industry by Zinnov Management Consulting. July 31, 2015

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121

the dq 100

Rank Rank

0 8 1

R Systems International

R

2014-15

663

2013-14

627

Source: DQ estimates revenue (`crore)

Rank Rank

0 8 2

2014-15

650

2013-14

NA

Source: DQ estimates revenue (`crore)

122

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July 31, 2015

6%

Systems International, which made an entry into DQ Top 100 ranking last year, has been able to secure its place in the list with yet another year of good show. In line with the last year’s strategy, telecom and digital media continue to be the largest industry verticals followed by the BFSI segment. The volumes growth from existing, as well as new customers, coupled with discipline in execution and higher license revenue, led to improved margins. To further accelerate its growth momentum, the company this year acquired a Singapore-based ERP firm with BI competencies. This ac-

quisition is aimed at strengthening the company’s ERP and BI expertise and client base in South East Asia. During the year, the company also completed the sale of its Europe BPO Business. Further, R Systems International changed the name of its wholly owned subsidiary in the US from Indus Software to R Systems Technologies. Going forward, the company will continue to focus on disciplined execution, strengthening sales and marketing efforts, and processes along with deepening its relationship with customers. FY16 looks promising for the company backed by a strong sales funnel across business verticals and geographies.

VMware

V

Mware is focusing on strengthening its position in India and making significant investments as the virtualization and storage market continues to pick up across verticals. VMWare’s global CEO Pat Gelsinger last year announced that it projects investment of up to $500 mn in India over the next three years. Increased thrust on firming its presence in the country has helped VMware India make an entry in the DQ Top 100 list. The company’s R&D and support operations in India are second in size and scale only to those at VMware’s headquarters in Palo Alto, California. During the fiscal,

www.dqindia.com

the company significantly added to its headcount, with more than 2,300 people in India. Today, VMware serves nearly 3,500 customers and works with approximately 100 partners. Over the last nine years, VMware’s sales operations have expanded across India. In FY15, VMware India saw a change in the senior leadership as T Srinivasan moved out of the company after a five-year stint. The company roped in Arun Parameswaran (from Red Hat India) as the company’s Managing Director. The company further plans to expand its customer base in India and is eyeing opportunities in the wake of new trends such as Software Defined Datacenters and cloud. A CyberMedia Publication

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Rank Rank

0 8 3

CORE Education & Technologies

C 2014-15

628

2013-14

1,272

-51%

Source: DQ estimates revenue (`crore)

W

0 8 4

626

2013-14

487

29%

Source: DQ estimates revenue (`crore) |

ments. Plus, economic slowdown in the US market added to the problems. Also, the company has been unable to bag any fresh projects in the government sector to keep its pipeline full. In 2013, a Mauritius-based fund had offloaded a huge chunk of its holding in CORE Education which probably added to the woes. Its efforts to raise `200 crore in fresh funding from lenders as part of a debt restructuring program did not fructify. As a consequence, the company had its margins shrinking and stock prices plunging. It is important for the company to identify new business avenues and look beyond the government to get back on the growth track.

D-Link

Rank Rank

2014-15

onstant decline in CORE Education’s turnover continues in FY15. The company has been wading through rough waters for the last two years because of its heavy reliance on the government projects. Most of the government business in FY15 was in the planning phase and did not pay dividends. As a result, the company’s revenue fell by 51% to `628 crore from `1,272 crore. Most of the companies in the government space have faced challenges in terms of getting the stuck-payments. Similarly, CORE Education was also hit by delays in payments by the state govern-

A CyberMedia Publication

ith an impressive growth of 29%, DLink had a rewarding year in FY15. The company attributes its growth to the strategic alliances that allowed D-Link to expand its solution offerings and reach out to a wider customer base pan-India. In FY15, over 30% of D-Link’s revenues came from the government orders, followed by 25% revenue from manufacturing units. D-Link witnessed significant traction for its WLAN products. As per IDC, D-Link India recorded the highest market share in wireless segment in terms of unit shipment and revenue www.dqindia.com

during the first three quarters. The company’s structured cabling business also witnessed robust growth of 25%. As per the company, its strategic approach, strong distribution network, and supply chain management were the key factors that backed its success. The year saw D-Link introduce a range of 3G & 4G devices as a part of its mobile Internet solution. The company is eyeing growth in new age 11AC Wireless technology and introduced a wide range of devices in the segment. Further, D-Link introduced MiFi dongles. D-Link also entered into a business alliance with MOXA, a provider of industrial networking, computing, and automation solutions. July 31, 2015

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123

the dq 100

Rank Rank

0 8 5

Fujitsu India

O 2014-15

625

2013-14

525

19%

Source: DQ estimates revenue (`crore)

I

0 8 6 610

2013-14

526

Source: DQ estimates revenue (`crore)

124

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July 31, 2015

footprint in the consulting services, servers and storage business, it is betting big on new-age technologies like High Performance Computing (HPC) and SMAC. The company is eyeing huge opportunity for the HPC market segment. India is one of the top three markets for HPC, for Fujitsu globally. The company is now aiming to double its revenues in the HPC segment in India. To this end, it opened a Fujitsu HPC Competency Center in Bengaluru recently. Besides, Fujitsu is pumping investment in expanding its ICT utilization through its solutions in the datacenter and client computing devices business along with business application and managed infrastructure services.

AMD India

Rank Rank

2014-15

verall, FY15 was a fairly good year, as the company witnessed healthy growth of 19%. Fujitsu India’s product market has shown strength this year backed by 35% growth over last year. Revenues from the server, storage, datacenter solutions along with business application services and managed infrastructure services increased this year and moderate growth in the PC and workstation business was seen. Growth in India is largely due to expansion of offshore facilities, while the domestic market is yet to be properly tapped by Fujitsu. Further to strengthen the brand’s

16%

n FY15, AMD has manifested robust growth in India because of its constant efforts to enhance its product portfolio in the graphic card segment. The company increased its market share to 26% in the local market, giving a tough time to its competitor Intel. AMD witnessed 16% growth in India with revenue reaching `610 crore from `526 crore. In fact, India is the only geography where the company has witnessed growth. Its global revenue performance has disappointed the investors and peers. Further, with campaigns like ‘Digital India’ announced by the government, the company hopes to grow more in the future. While the company has taken conwww.dqindia.com

siderable time to adopt the mobile route, it is seriously exploring opportunities through its engagements with local smartphone companies in India. It collaborated with Lava, which earlier last year launched an AMD-based tablet. AMD claims to have the highest share of commercial personal computer business in India than anywhere else in the APAC region. Mega deals such as with Uttar Pradesh, Tamil Nadu, and Rajasthan governments helped the company move upward. Nearly 36% of the company’s APAC revenue is generated through India. AMD also added a new line of business—embedded semi-custom servers for products like Sony PlayStation and Apple Mac Pro for India. A CyberMedia Publication

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Rank Rank

0 8 7

Intellect Design Arena

I 2014-15

605

2013-14

533

14%

Source: DQ estimates revenue (`crore)

I

0 8 8

560

2013-14

508

10%

Source: DQ estimates revenue (`crore) |

The company has emerged as a preferred choice for digital transformation in banks and insurance firms. The company won 56 deals in FY15 including a deal from the Reserve Bank of India (RBI) which used its digital platform for functions related to treasury and citizen payments. Intellect was also chosen by an American bank for transaction risk management. Apart from this, the company announced plans to establish application design centers in Mumbai and New Jersey (US) for a collective investment of $20 mn. Looking ahead, the outlook for the firm looks upbeat with Intellect expecting a 20% YoY growth in the coming years.

Fortune Marketing

Rank Rank

2014-15

ntellect Design Arena, the demerged BFSI focused product firm of Polaris Financial Technology, delivered a strong performance during the fiscal and secured a slot in the top 100 ranking. Operating as a standalone product arm in FY15, the company was able to clock a revenue of `605 crore. With its digital 360 approach, Intellect strongly differentiated itself in the global market place to accelerate digital transformation programs. Further, Intellect’s digital products found ready acceptance in advanced markets, which reflected in the company’s revenue distribution with over 47% of annual revenues from the US and Europe.

A CyberMedia Publication

t was back to growth for Fortune Marketing in FY15 with the company clocking 10% growth as against 8% dip in FY14. A well-known distributor of big IT brands such as Symantec, Norton, HP, and Creative, Fortune Marketing distributes over 500 products ranging from computer peripherals, software, networking and surveillance products. The company counts names such as Snapdeal, Amazon, Flipkart, Acer, Max Life, and HCL as its clients. During the fiscal, Fortune Marketing was appointed as a national distributor of Creative Technology to promote the firm’s products. The company will offer sales, marketing, www.dqindia.com

technical support, and post-sales service, as well as offer end-to-end support to partners and customers on behalf of Creative. The company enjoys a formidable reputation in the security surveillance market, and has in the past grabbed orders for a city surveillance project for Bhopal. The firm has also been considered for providing the storage system for a domestic airport surveillance system for the New Delhi domestic airport. Fortune Marketing has also made a foray into the fast growing SSD segment in India this year, when it got appointed by Kingston as a distributor for its range of solidstate drive (SSD) products in the country. July 31, 2015

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125

the dq 100

Rank Rank

0 8 9

Trigyn Technologies

R 2014-15

493

2013-14

452

9%

Source: DQ estimates revenue (`crore)

C

0 9 0

486

2013-14

421

Source: DQ estimates revenue (`crore)

126

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July 31, 2015

ogy companies like Microsoft, EMC, TIBCO, and IBM. The company is also a registered software reseller with Redington. The key highlight for this year was the launch of the company’s wholly owned subsidiary Trigyn Digital in Canada. Trigyn Digital will focus on providing digital services including research, strategy, user experience, creative, social media, and content. The company also bagged a number of key contracts during the year. Some notable ones include the contract from the University of Massachusetts, Medical School; The State of California, Department of General Services; and New York State City Government.

Accel Frontline

Rank Rank

2014-15

anked at #89, Trigyn Technologies is a new entrant in the top 100 list. The company’s strategic moves during the year paid off, helping the company clock a growth of 9%. The company’s annual revenue in FY15 stood at `493 crore against the previous year’s revenue of `452 crore. Even though the market witnessed an economic slowdown in the US and EU region, Trigyn Technologies still managed to hold its own space by focusing on the domestic market. Over the last few years, Trigyn Technologies has built a strong partner ecosystem. Trigyn has established partnership with the leading technol-

15%

hennai-based Accel Frontline, an IT services company, witnessed a healthy growth of 15% in FY15. The company’s growth was largely driven by the key orders it bagged during the year. In Q3 alone, Accel won around 30 new IT services contracts worth more than `25 crore. Notables ones included a contract worth `4.5 crore from a city corporation and contracts worth `2 crore each from an IT solutions provider based in Chennai and a Bengaluru-based defence company. Accel Frontline was also appointed as the warranty service partner for Foxconn, the world’s leading manufacturer of computer components and systems.

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Accel is seeing huge opportunity for infrastructure management business and is focusing on tapping the growing market. The company also witnessed leadership changes in the fiscal, with R Neelakantan being appointed as the Chief Financial Officer (CFO). During the fiscal, after receiving investment from Japan-based CAC Holdings, the company partly retired its high cost debts. Both the companies are now working closely to enhance the firm’s global IT services business in Japan and outside Japan. The company’s promoters also recently decided to divest their stake to achieve minimum public shareholding norms, as needed by the law. A CyberMedia Publication

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Rank Rank

0 9 1

LG India

F

2014-15

470

2013-14

381

23%

Source: DQ estimates revenue (`crore)

T

0 9 2

452

2013-14

307

47%

Source: DQ estimates revenue (`crore) |

34 mn units in the Q4 FY14, a YoY decline of -4.4%. According to IDC, globally LG was ranked in the Top 5 in the quarter with 9.2% market share worldwide. LG’s biggest YoY gains were in western Europe and AsiaPacific (excluding Japan) with 12.6% and 6.6%, respectively. LG’s monitor portfolio is still going good despite strong headwinds pulling the monitor market numbers down globally but interestingly India is still showing traction and LG’s growth here is a testimony to that. Looking ahead, LG clearly needs to face Samsung’s domination in the PC monitor arena and there are also players like Dell and Lenovo—both have grown impressively globally in CY Q4 2014.

Team Computers

Rank Rank

2014-15

or LG India, we have factored in only the IT products revenue and over FY15, this segment did see good growth. The biggest chunk of revenues have come from the monitor business, followed by optical drives and Chrome-based offerings. LG over the years has escalated its stature in India, and one has seen its consumer electronics play growing in leaps and hence the IT products division oftentimes gets overshadowed in the overall scheme of things. As we look at some global monitor market stats, a March 2015 IDC report said that the worldwide PC monitor shipments summed up to

A CyberMedia Publication

eam Computers had a remarkable 2015 with the company witnessing stellar growth. The significant jump in revenues has helped the company secure a spot in the DQ Top 100 list. While the company saw healthy traction in most customer verticals, BFSI, and R&D emerged as the key contributors to its impressive growth. Further, around 35% contribution came from new customers and 25% from increasing wallet share in the existing customers. The company’s strategy of capitalizing on its strong product line and rapid expansion in newer brands/products has started bearing fruits. It is also www.dqindia.com

witnessing significant benefits from new technology trends like mobility, cloud, and BI, being an early investor in these disruptive technologies. Major chunk of its revenues came from computers and devices at 39%, domestic IT services at 12%, and datacenter equipment at 10%. Over the years, the company has grown into 25 office and support locations, and 250+ supported locations. It has a workforce of more than 1,100 employees. Further, the company has key partnerships with leading companies like HP, IBM, Microsoft, Lenovo, Acer, Apple, Amazon, Samsung, etc. FY16 outlook also looks extremely positive with its strong reach and robust product line. July 31, 2015

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127

the dq 100

Rank Rank

0 9 3

CA Technologies India

A

2014-15

450

2013-14

550

-18%

Source: DQ estimates revenue (`crore)

R

0 9 4

439

2013-14

382

Source: DQ estimates revenue (`crore)

128

|

July 31, 2015

task of data management as they are facing exponential data growth. As a result of data growth, long periods of downtime instances are increasing by the day. The company took on to the task of addressing challenges of this kind and pitched on its proactive approach to cost-effective data backup and assured recovery across mixed IT environments. CA Technologies launched its new CA Arcserve Unified Data Protection (UDP)—helping businesses boost the availability of critical systems. In FY15, the company also took on to mobility more aggressively and launched its new enterprise focused mobility solutions. It also entered into a license agreement with SAP for its mobile device management solutions.

RS Software

Rank Rank

2014-15

s we look at FY15, it was DevOps that dominated CA’s agenda globally. The company in India too took on the DevOps opportunity and made concerted efforts to leverage its ages of software product expertise to address the complicated challenges impacting enterprise computing. The company calls the manifestation of this disruption as ‘application economy’ and thereby organizations need extraordinary agility and elasticity when it comes to technologies powering IT organizations. Clearly, the agenda CA Tech pursued over the year related to ones like how can enterprises prepare themselves for managing the daunting

15%

S Software, a firm focused on the digital payments space, is being featured for the first time in the Top 100 list. The firm’s revenue for FY15 stood at `439 crore against `382 crore, with an increase of 15% over the previous year. In the backdrop of rapid growth of eCommerce, the financial and payments technology market exploded and RS Software leveraged this opportunity to expand its reach. With digitization becoming a buzzword, the company is hopeful to have sustained growth in the next five years. Even as the eCommerce business www.dqindia.com

grows manifold in India, there has to be a parallel payments ecosystem that collects payments. With RS Software looking to play the role of an integrator between merchants and the acquirer community, the future for the company looks bright. Being a niche player in the electronic payments industry, higher adoption of electronic payments is a trend that is likely to continue in the near future. The potential of the company can be seen from the fact that it is an integrator for Apple Pay, which was launched recently. Looking ahead, the company is focusing on expanding its reach and strengthening its emphasis on marketing to small and medium-sized firms. A CyberMedia Publication

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Rank Rank

0 9 5

Sasken Communication Technology

S 2014-15

428

2013-14

458

-7%

Source: DQ estimates revenue (`crore)

T

0 9 6

411

2013-14

1,668

-75%

Source: DQ estimates revenue (`crore) |

pursued emerging technology areas, at the same time it stayed grounded on its traditional areas of expertise— that is embedded systems and testing. If one needs to sum up Sasken’s strategy over FY15, it clearly focused on upping its competencies in existing areas of expertise and acquiring new skills to tap on to the opportunities arising out of disruptions like IoT. In Q1 FY15, the company launched the Sasken-Acharya Innovation Lab (SAIL), with Acharya Institute of Technology (AIT). The center was launched to ramp up the innovation quotient and seed skills for R&D projects conceived by Sasken. FY16 is expected to be a good growth year given its early mover advantage in the emerging tech areas.

Zylog Systems

Rank Rank

2014-15

asken is into the embedded R&D space and since the last two years its revenues have been going south. This decline in the revenue can be attributed to its restructuring and its intention to focus on a select few segments. The strategy inked during FY14 helped Sasken consolidate its position in FY15, notwithstanding the dip in revenues. Over the year, it aggressively pursued opportunities in embedded systems and IoT. For instance in the IoT space, Sasken focused its energies on building proof of concepts. The company believes that this will help in creating next generation services to retail and insurance verticals. While the company aggressively

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hings went bad for Chennai-based IT service provider this year with the firm’s revenue figures falling down significantly. In stark contrast to the milestone of `2,500 crore in FY13, the revenues for FY15 stood at `411 crore. FY15 was a very bad year for the company as ICICI Bank sold shares pledged by the company in Zylog’s wholly owned subsidiary Zylog Systems Canada to Ikya Human Capital, without Zylog’s concurrence. As this subsidiary (earlier known as Brainhunter) contributed nearly $90 mn to the revenue, the action adversely impacted the company’s revenues, leading to a major fall in revenues. www.dqindia.com

During this fiscal year, shareholders also took a major decision of voting in favor of removing the company’s chairman and CEO Sudarshan Venkatraman from his post at the company’s 18th AGM, due to mismanagement by the CEO in running the company and running it into a debt of over `900 crore. The company is going through liquidity crisis and there are reports that IDBI Capital is helping the company with a restructuring plan. The biggest challenge as of now is to get the business back on track and restore employee confidence. The degrowth trend has also hiked the attrition rate—the employee strength has dropped to 697 from 5,435 in a period of two years. July 31, 2015

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129

the dq 100

Rank Rank

0 9 7

Subex

B 2014-15

361

2013-14

344

5%

Source: DQ estimates revenue (`crore)

N

0 9 8

353

2013-14

346

Source: DQ estimates revenue (`crore)

130

|

July 31, 2015

the key wins include a project from a Malta-based firm, GO. As per the deal, Subex will provide ROC revenue assurance and fraud management solutions. Another key highlight was the reappointment of Surjeet Singh as the Managing Director & CEO of the company for a period of one year. Apart from this, Subex along with Mobily was awarded the prestigious GTB Innovation Award 2015 for Business Service Innovation and has also been named one of the ‘Top 10 to Watch’ companies by the leading analyst firm, Frost & Sullivan. Subex today serves over 300 installations spread across 70 countries. This includes 33 of the world’s 50 biggest telecommunications service providers worldwide.

Nucleus Software

Rank Rank

2014-15

engaluru-based Subex is a new entrant in the DQ Top 100 list. For FY15, the company which has 800+ employees and a customer base of 200+, reported a growth of 5% with revenues standing at `361 crore. Dealing in software services and products with a strong focus on the telecom domain, the company provides services in the areas of telecom applications, network management, quality of service measurement, switch interface, call simulation, and other systems software. The company bagged some key projects in the fiscal gone by that have positively impacted its revenue. One of

2%

ucleus Software, a provider of banking products to the financial services sector, is a new entrant in the Top 100 list. The company posted an annual revenue of `353 crore against `346 crore in the previous fiscal. Nucleus made strategic investments in sales and marketing, introduced new products, and further strengthened its leadership team to help in driving the transformation and continue the growth momentum. Relative to last year, the outlook for the company in advanced economies is improving in comparison to the growth in emerging markets www.dqindia.com

and developing economies. During the year, the company ventured into new strategic markets—it now has a customer base of more than 150 institutions in more than 50 countries. The company has more than 1,500 employees on its payroll today. In FY15, the company launched FinnOne Neo, a product suite designed to manage end-to-end lending requirements of banking and financial services industry. Q4 was the most successful quarter for the company and it won six new product orders and 12 product implementations successfully went live. The company also entered into a collaboration with Red Hat that would enable it to offer a more cost-effective technology platform. A CyberMedia Publication

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Rank Rank

0 9 9

Huawei India

O 2014-15

224

2013-14

170

32%

Source: DQ estimates revenue (`crore)

S

1 0 0

216

2013-14

197

10%

Source: DQ estimates revenue (`crore) |

the central government along with private companies for tie-ups. Huawei also has a global tie-up for smart cities with Infosys and Accenture and is looking for more partners in India too. For FY16, the company is targeting Internet service providers, media, BFSI, and education verticals for its enterprise solutions and services. In the BFSI vertical, the company already has footprint in the Bombay Stock Exchange, ICICI Bank, UBI and is focused to expand it in a big way while in the education sector, deals have been signed with IIT-Guwahati, Manipal University, and Calicut University. According to company officials, once reaching the $100 mn mark, the company will start manufacturing enterprise products in India itself.

SQS India BFSI

Rank Rank

2014-15

verall in India, Huawei is a $1 bn plus entity, however, we have factored only the enterprise revenues in this listing. In FY15, the company demonstrated impressive traction on the enterprise side of things with a strong list of client wins that clearly ramped up its enterprise revenues from this part of the world. Its enterprise customers have names like DEN Networks, Adidas, Taj Hotels, Tata Sky, Hathway, QTel among others. As a part of its enterprise vision, Huawei is targeting PM Modi’s Digital India project and is also looking for leveraging opportunities in the 100 smart cities projects and is in talks with various states and

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QS India BFSI (formerly known as ‘Thinksoft Global Services’) calls itself a specialist in financial and banking software testing services, and claims to be the only independent testing service provider listed in India. Coming into the rankings for the first time as we look at the numbers, the total income was `216 crore for FY15 as compared to `197 crore in the corresponding period of the previous year, up by 10%. EBITDA stood at `42 crore as compared to `40 crore during the corresponding period of previous year, an increase of 5%. The net profit for the company www.dqindia.com

stood at `22 crore for FY15 as compared `30 crore in the corresponding period of the previous year, decrease of 28% due to exchange rate movement. According to the company sources, the YoY increase in revenue is due to its strong focus in the US region and sustained growth from the banking segment. SQS India BFSI is a specialist in financial software testing with over 14 mn person hour track records for Global 500 financial and insurance organizations in the US, UK, Europe, India, and Asia-Pacific. Going ahead, the company is expected to continue to invest in the US and Europe regions for consistent growth. July 31, 2015

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131

LAST MATTER

Ed Nair [email protected]

What Do Employees Really Want

T

he recent study, ‘India’s best companies to work for 2015’, by The Economic Times and Great Place to Work Institute, had five technology companies—RMSI, Google India, SAP Labs, Intuit Software, and Pitney Bowes Software India—in the top ranks. One wonders why some of the top names like TCS, Cognizant, Infosys, Wipro, and HCL Tech did not make it to the list. In fact, they are very conspicuous by their absence. There are various ways to read into this. At the basic level, if the survey was an opt-in survey, these companies might not have opted in. Opting in for the survey means that the company has to supply loads of information to the survey team. They also have to provide the survey team unconditional and random access to their employees. All of this can get messy at times. As with any survey or poll, the methodology for collecting the data and its analysis at the end of it is open to challenge and debate. Even going by the most basic theories of sampling, one will need to sample a far higher number of TCS employees than an Intuit Software. This may turn the economics of the survey on its head. Add to that, the geographical spread of TCS, the team sizes, the number of levels, and many such dimensions also add to the complexity. Unlike rankings of B-Schools or T-Schools that may guide students to choose the right institution, these surveys are never used to choose a potential employer. If at all, they serve as a ‘feel good’ factor for employees at these companies that they are in good hands. Then, what’s the use of these surveys? These surveys serve as a great guide for other companies to understand the motivation of employees and provide valuable inputs in designing their own HR policies. Some of the interesting findings from this survey are: n Special and Unique Benefits: Differentiation from other companies in the industry through special and unique benefits was voted by nearly 80% of the employees. n Fair Pay: Nearly 76% of the respondents mentioned fair pay as a key qualification. Note that people are not necessarily seeking the best paying companies. n Willingness to share wealth and equal opportunities for recognition: This got 74% of the votes. Employees are not only seeking fair pay but they also seek a fair share in the profits. This means that employees are willing to put their skin in the game. Being recognized for their achievements in a democratic way regardless of any affiliations is equally important. n Reliability of managers: A whopping 82% voted that they would like to see congruence between the manager’s words and actions. This means that managers don’t have the luxury of being able to monopolize their power, they have to walk their talk. These points are very insightful. It points towards fresh thinking and a new set of expectations that this generation of employees hold. There are great lessons for organizations here.

Ed Nair Editor-at-large 132

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July 31, 2015

www.dqindia.com

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