CONTECH SOFTWARE LIMITED
ANNUAL REPORT 2002-2003
TOWARDS THE GLOBAL FUTURE
Contech Software Limited (CSL) is an innovative software services company
registered with Software Technology Parks of India (STPI) at Gandhinagar,
India. With clients in the USA, UK, Israel, Italy and India, Contech is
well on its way to becoming a truly global company.
CSL's world-class, 24,000 sq. ft. development center, set on a 2-acre
campus at Gandhinagar, in Western India - housing state-of-the-art Avaya
certified CAT 6 networks, High-speed connectivity, high-end audio-video
conferencing equipment, fully digital exchange, a dedicated training wing,
modern library, cafeteria and recreational facilities is a hub for high
value software development.
CSL specializes in providing customized offshore and onsite software
solutions in the technology areas of Business Applications and Embedded
To be globally identified as a quality conscious company for innovative
Software and Embedded solutions.
MANAGING DIRECTOR'S MESSAGE
The year 2002-2003 was a challenging year for the India software industry.
Its growth was impacted by several factors. Series of misfortunes had hit
the economies around the world during the last couple of years. Such
misfortunes which include September 11 attack, Iraq war, global slowdown,
stump in the US economy and falling technology spends, have all taken their
toll on the IT industry. However, despite severe pressures on the IT
industry, your company has survived the slowdown and has successfully
completed six years of full operations in the software services industry.
To us, the most important concern is that how your company treated the
adverse domestic and global circumstances of fiscal year 2002-03 as an
opportunity to restructure the operations. We have formulated several
strategies for the financial, business and technology path of your company
in the coming years. The steps we have taken are towards the goal of
becoming a focussed and profitable services provided in Embedded and E-
Business areas. Your company continues to optimize its offshore delivery
model to service its clients. Your company's services include consulting,
application design, development, re-engineering, maintenance and testing.
Customers have always been central to your company. During 2002-03, every
employee redoubled the efforts to satisfy our valued customers, to sustain
the operations and to pave way for future growth and profitability. Your
company believes that the environment will remain challenging in the new
financial year. Customers will continue to focus on higher return on their
investments that would continue the pressure on your company's billing
rates as well as payment cycles. However, I would like to reiterate that
your company's vision is to be a globally identified corporation that
provides best of the solutions and services, based on latest technologies,
delivered by a strong and dedicated team with in-depth expertise. Rest of
this letter highlights some of our initiatives towards that goal.
Your company firmly believes that World-Class infrastructure and internal
IT initiatives are key drivers of scalable and sustained corporate
excellence. The continuous focus is on information infrastructure and
environment such that it:
- Drives information availability to a global work force,
- Enables scalable, sustained excellence in execution,
- Enhances employee and process productivity, and
- Further strengthens our client partnerships.
This will complement earlier year's focus of building an ideal 24,000 sq.
ft. workspace for around 300 software professionals, a dedicated training
center, a modern library and recreation facilities.
HUMAN RESOURCE MANAGEMENT
The key strength of your company is its employees. Your company has been
able create a favourable work environment that encourages innovation. Your
company has put in place a scalable recruitment and human resource
management process, enabling it to attract and retain highly skilled
New entrants are put through appropriate initiation and technical training.
Also, continuous training is planned throughout the year for engineers at
all levels. Process improvements have also been made in the areas of
recruitment, training and visa processing apart from software development
and testing. In addition, all confirmed employees are eligible for your
company's Employee Stock Option Plan (ESOP).
CSL has a wholly owned subsidiary in the USA and a branch office in UK and
Italy. We have also established Marketing Alliance Partnerships (MAPs) in
Israel, Italy, UK and USA. Also, periodic visits are taken up by senior
persons in the company for customer and prospect meetings as well as to
attend major trade shows in target Markets. Through our increasing global
presence, we are able to know the latest trends as well as ground realities
of our markets. This kind of coverage will continue to help us refine our
In a globalised environment, a company is known by the companies it is seen
with. Such an apparent impression however stems from the undeniable fact
that a good partner or associate always adds depth and scope to one's
activities. Towards this end, we already have a technical alliance with
Microsoft, Oracle and Rational. We are in the process of forging technical
alliance with Sun, Intel, Motorola and other microprocessor manufacturers
as well as RTOS provides.
Your company firmly believes that quality is one of the most critical
components for competitive success in the global market. Your company has
achieved high maturity through adherence to highly evolved processes, which
have been systematically benchmarked against world-class operating models.
Your company was assessed at SEI CMM level 3, which is the would class
benchmark in software process management. To address the challenging of the
future and to ensure performance improvement, regular and rigorous internal
assessment takes place to identify the areas that need improvement so that
we continue to march towards SEI CMM Level 5.
During last years, we have lost several clients due to either drastic
downsizing of their operations or even closures of some of our clients,
resulting in revenue losses. This is also reflected in our bottom line.
However, in the new financial year, we are certain of adding new clients
based on our increased focus in chosen areas of business. Because of last
two years industry slowdown, we have continued to build our strengths in
terms of focussed approach, world-class infrastructure and quality, more
domain knowledge and dedicated work force, we are certain that it is only a
matter of time before many global customers decide to work with us.
Based on the recent increase in the inquiries and trial orders, we are very
confident about our future. Going forward, we have identified several areas
of strengths, which will help our growth plans. Some of them are outlined
- The ability to understand a client's requirement and to offer a credible
technology solution addressing the problem.
- Ability to maintain skill sets on selected technologies and ensuring
- Quality processes based on SEI CMM Level 3 and beyond.
- The ability to attract and retain high quality people.
- Flexible, client focussed organization structure.
With all these and many other strengths coupled with focussed approach will
help your company to emerge as a strong IT solution provider company in the
The fact that we have come this far owes its existence to many individuals,
organizations and government agencies. Your directors thank the company's
clients, vendors, investors and bankers, STPI - Gandhinagar, Reserve Bank
of India, Customs Department, Information Technology Department of Govt. of
Gujarat and Gujarat Informatics Ltd., for their continued support during
the year and look forward to their continued support in the future. Your
directors place on record their appreciation of the contribution made by
employees at all levels, who, through their competence, hard work,
solidarity, cooperation and support, have enabled the company to achieve
For and on behalf of the
Board of Directors
Rajan K. Vasa
Gandhinagar : 21st June, 2003 Chairman & Managing Director