Letter to shareholders
The world is disrupting like never before.
Everyday experiences are no longer what they used to be.
Buying a vehicle depositing cash booking accommodation reserving movie ticketscalling for grocery monitoring fitness trying garments and even telling the time arebecoming unrecognizable from what they were even a few years ago.
New products and services driven by technology promising greater relevance and highervalue are transforming the way we live and work.
The might of data
Data is the new oil.
Today's world is exploding with data devices content and touch-points. The result isthat enterprises and institutions require more platforms systems and processes to connectand interpret data complexity. This in turn is being used to determine the ways in whichbrands/services remain relevant to first-time or enduring buyers.
This disruption is the new normal.
The result is that industries and businesses are experiencing fundamental challenges inresponsiveness. Businesses that succeed today will be ones that offer new value sourcesdeliver a memorable customer experience adapt with velocity and access global innovation.
The result is that GE believes that the 'Industrial Internet' their term for loT willadd USD 10-15 trillion to global GDP in 20 years; CISCO believes loT could generate USD4.6 trillion over 10 years for the public sector and USD 14.4 trillion for the privatesector.
The message is clear: this is the space in which to build long-term presencecompetence and capacity.
The Saksoft niche
At Saksoft we are building a specialized and world-class IT services company anchoredaround digital transformation.
This is not just a vision or intent statement; this is our survival guide in acompetitive landscape marked by players who are tens of times larger than companies likeours.
Saksoft is positioned as a niche technology specialist providing a comprehensive suiteof business transformation information management application development and testingservices. These services help clients level the playing field; they enable us to competeeffectively; they reinforce our business model around specialization over scale.
This then is the result: Saksoft projects are smaller focused and shorter. While ourdigital solutions are anchored around helping clients transform their business spacessome of our larger peers are focused on helping customers run their businesses. This finedifference represents our edge and platform to build customer value and loyalty in asustainable way.
'String of pearls' strategy
Saksoft has built its business around three pillars:
Build: Organic innovation derived from our engineering teams.
Partner: Unique solutions and go-to- market strategies using technology andservices partners.
Acquire: Acquisitions focused around key priority areas like IoT
Saksoft acquired the UK-based Acuma a business transformation enterprise in 2006.Since then the acquired company's quality of revenues and margins grew consistently witha considerable number of new business wins during the year under report. The impact of'Brexit' (Britain's exit from the European Union) was minimal on our business; in factBrexit provided a strong tailwind as the government increased spending on civic amenitiesand infrastructure. Acuma being a strong local IT services brand reported nearly 25%revenue growth in 2016-17.
Saksoft acquired 360Logica in 2015. The testing services business under 360Logicaperformed commendably with 11% revenue growth in 2016-17. Since the Company reachedtargeted milestones in terms of business wins revenue and profitability Saksoft investedINR 80 mn in enhancing its 360Logica stake from 51% to 76% in July 2016.
Saksoft acquired DreamOrbit Softech a Bengaluru-based company in December 2016. Theacquired company specializes in IoT complementing the logistics domain. The acquisitionrepresented a strategic fit providing deep IoT capabilities through a 270+ team engagedin cutting-edge engagements for leading third-party logistics companies in the US andAustralia. The DreamOrbit acquisition represented a decisive step in our digitaltransformation journey: we added a critical edge to our service offerings enhancing ourup-sell and cross-sell ability strengthening our customer intimacy and opening a newdomain in the logistics sector.
Focusing on our people and culture
At Saksoft our financial and operational results would not have been possible withoutthe commitment of our employees. As a specialist in digital transformation informationmanagement and testing services business we provide tools for our people to be moreconnected and engaged. One of the things about which I am most pleased is that weconsistently use technology and expertise to migrate customers to an increasingly digitalworld.
Our time starts now
At Saksoft we address an unprecedented opportunity to deliver innovation acrossapplication development information management and testing services helping customerstransform and achieve their business objectives.
We are evolving our culture to move quicker building on the success of the last17-plus years. I am excited that we achieved much success in our digital journey even aswe have added IoT capabilities through the DreamOrbit acquisition and moved into thefast-growing logistics and transportation verticals.
In fiscal 2018 we will continue to focus on driving profitable and sustainable growth.We will build on the momentum generated over the last fiscal year. We will strengthen ourdigital offerings and as a core strategy provide services/platforms/ solutions tovarious lucrative geographies.
Thank you for your continued support.
With my best wishes
Chairman and Managing Director