QUINTEGRA SOLUTIONS LIMITED
ANNUAL REPORT 2007-2008
I am delighted to report on the performance of our company in fiscal 2008.
Under Indian GAAP, consolidated revenues grew by 514% over FY2007 - an
enviable rate - while net profits witnessed an increase of 454%. As a
trusted partner to Fortune 500 and other established global organizations,
we continued to focus on building long-term relationships, reflected in our
repeat business rate of close to 90%. We added more than 412 employees
globally and signed up 18 new clients during the year.
In my last interaction - wherein I shared the successes of the acquisitions
of ValleyUS of United States and JadeLite Technologies of Singapore;
setting up of a robust practices- based organization; and increasing global
footprint - I had promised that there would be more successes on the way.
Looking back at the year under review, I personally feel that it has been a
period where our Company has leapfrogged to a new level.
Our Company acquired PAC Inc., a US-based information technology
corporation providing a broad range of IT services to financial services,
Telecom and Health care industries as well as business and technology
consulting in a variety of IT-related projects. This acquisition was in
keeping with Quintegra's articulated strategy of enhancing our competencies
to serve clients better.
Founded in 2002 and headquartered at McLean, Virginia, PAC has brought core
competencies in high-end IT consulting and leadership in middle-space IT
services such as enterprise application services, data architecture & data
validation, audit compliance documentation, business process management,
integration architecture & deployment and testing & configuration
management. This transaction has augmented Quintegra with these value
PAC's offerings in the middle-space IT services and high-end IT consulting
capabilities complements our strong offshore presence, mature delivery
processes and growing IT services & products offering. Combining the
resources of both organizations has allowed us to offer clients a broad and
deep set of IT services and products in the industry.
The opportunities that present itself before our Company are truly immense
in their potential & depth and an augmented management team should provide
superior execution capability to capture such opportunities and effectively
convert them into strong & value-adding results for all our stakeholders.
As part of the strategy , having we reached critical revenue size and
deepened out vertical based revenue , we have brought in the best
Management team in to our company to take our company to the next level. I
am really excited to announce that the new team which has come on board are
the best management team any company can aspire for and with these changes
I am confident that 'our march to become one of the best companies in India
are not far off.'
As part of the new team, Dr. Murali Subrahmanyam has joined Quintegra as
Chief Operating Officer. Dr. Murali was the head of Merrill Lynch (India)
Technology Services (MLITS) and was the architect of offshoring to India
from Merrill. Along with Murali, we are joined by Chandra Kant as marketing
and strategy head, K Srinivasan for handling sales outside US, Arun
Arumugam as Head of BFSI vertical and Sunder Athreya. We also have Jerry
Hunt (formerly with Dow Jones) joining us to spearhead sales and marketing
in the US. PAC has a major chunk of revenues from BFSI space and we have
strengthened our offshore capability with having leaders from these space
will certainly going to benefit our company in many ways. With each
executive bringing in over 15 years of IT industry and leadership
experience, I am confident this team will take our Company to the next
level of business while maintaining our commitments to the existing
stakeholders. This team compliments my existing leadership team are helping
drive strategies and implementing them.
Our Company also crafted a differentiated business model and strategy.
Practice Heads are now charged with more narrow but deep, focused roles in
high growth areas. We have added new service models to our portfolio. In
today's business environment, operations cannot be separated from
technology and therefore we will aim to provide a holistic service to our
clients using Operations-as-a-Service (OaaS) methodology which combines
shared KPO services with our products run in a Software-as-a-Service (SaaS)
model. This OaaS-SaaS methodology is unique in the industry as it provides
operational benefits to our clients by focusing on operations and
As part of strategy to create enterprise wide differentiators, we have also
institutionalized a project framework called MineValue, which involves
empowering, capturing, executing and quantifying various ideas and
suggestions for improvement within projects / systems. This will be a
unique value added proposition to our customers. In addition to creating
differentiators enterprise wide, in every service offering that we have, we
have created clear differentiators which sets us apart from competition and
gives a compelling case for our prospective clients to engage us and
current clients to grow with us.
To pre-empt the problems that technology companies are challenged with on
reaching certain size, we, at Quintegra, as part of strategy, decided to
offer services in `Ceribral' consultancy space to our customers. This is a
conscious and well defined strategy as part of our future growth.
Not only has our Company been growing in terms of services, we have
significantly strengthened our proprietary products portfolio. We have
acquired copy rights for Flexible Home Building (HBfx) - Quintegra's state-
of-the-art solution for SAP for EC&O package; Hospital Management &
Information System (HMIS) - a revolutionary ERP solution with end-to-end
features for simplifying hospital management; and EduCampus - a versatile,
web-based, campus management solution that seamlessly integrates and
manages all of an Institute's key functional work processes.
In adding to our global footprint, we operationalized proximity centers in
Africa and Ireland. We have also planned for additional proximity centers
as well as expanding capacity at our offshore center. These initiatives
will enable our Company to keep up with the pace of growth.
Our Company has also made a headway in Corporate Social Responsibility
(CSR) activities this year, first of which was the Green Office campaign.
There shall be more initiatives taken up in the future.
While there have been a string of successes for our Company to cherish, it
is prudent not to ignore the surrounding cautions. There has been
unprecedented turbulence in the US, which in turn has contributed to a
slowdown in the overall economy. Revenue shortfalls, profit warnings and
layoffs have become commonplace; and the urgency for large corporations to
adopt new initiatives has declined.
IT budgets are now subject to careful consideration. Companies are seeking
to maximize the return on their IT investments and therefore focus on
short-gestation projects that promise predictable, substantial payoffs.
CIOs are increasingly focusing on consolidation, integration and
convergence imperatives, rather than on radical advances in technology
infrastructure. There is an unmistakable shift towards value-for-money and,
as a result, towards longer decision-making cycle times.
Clearly, these are challenging times for an IT services company. As self-
preservation and prudence descend on US industry, the near-term demand
outlook for IT services is not as rosy. Nevertheless, we continue to see
significant opportunities as value-for-money is emerging as a key
imperative and intend to strengthen all the ingredients of growth -
infrastructure, people, processes and systems.
This has been a landmark year for our Company since my first interaction
with you. The results are there for us to cherish - in a span of 3 years,
we have grown from a $10 million company to a $100 million company, with a
1000 strong global team. Our goal for 2010 has been achieved in record time
by 2007 itself. I am proud of and thankful to each and every Quintegran
across the world, each of whom has contributed in delivering this growth.
Now, we are on the threshold of our next wave of growth and are committed
to make it happen.
Our company is now ISO 27001 in Data security and ISO 9001:2000 in quality
standards. We have been assed and obtained SCAMPI B in SEI- CMM Level 5i as
well. Our Company is well poised to take on the next set of challenges and
move closer to becoming a nationally and globally respected organization. I
personally thank you for your patronage and look forward to your continued
& expanded relationship with Quintegra. As been in the past, I count on
each one of you for your support in building 'QUINTEGRA' as a great company
in every aspect .
Place: Chennai Shankarraman Vaidyanathan
Date : 29-08-2008 Chairman and Managing Director