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| Patni targets 6% revenue from domestic market by 2012 |
| Shivani Shinde / Mumbai Sep 18, 2009, 00:22 IST |
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Patni Computer Systems, India’s sixth largest information technology (IT) firm, expects revenue from domestic market to account for 6 per cent of its overall revenue over the next three years. Currently, its India revenues are less than one per cent. The company is also eyeing acquisitions to increase its penetration and growth in the domestic market.
“We will be focusing on the three primary verticals government, telecom and banking financial services and insurance (BFSI). Of the 6 per cent revenue target, close to 50 per cent will come from government sector,” said Deepak Khosla, President SAARC Region.
The company’s foray into the domestic market, over the last two-and-a-half months, is a part of intensifying its regional focus for accelerated growth under the leadership of Chief Executive Officer Jeya Kumar. As a part of its recent internal restructuring, the Asia-Pacific region has been divided into two--APAC and SAARC. Overall Asia Pacific is expected to contribute 15 per cent of global sales by 2012 and the split is aimed at maximising the opportunity through a concerted focus in the regions.
“According to industry analysts, the Indian IT Services market is pegged to grow to $10.73 billion (Rs 51,500 crore) by 2011. The split (SAARC & APAC) is aimed at maximising the opportunity through a concerted focus on the individual regions. While APAC will be headquartered in Singapore, SAARC will be driven from India,” said Kumar.
Kumar further added that in India, the focus will be on medium to large system integration projects. For this the company is gearing up its team in India. “We already have 300 people working for the domestic market but we will be increasing these numbers. We will look at both organic and inorganic route. In terms of inorganic route we will look at targets that will enhance our SI capability,” added Khosla. By the end of this fiscal year, Khosla is targeting to significantly expand his India team.
Moreover, the company is also planning to get international expertise to the domestic market in sector like insurance as well as looking at collaboarting with international players. “We have one of biggest practice in the insurance segment. We will bring the best practices of the global players to the Indian market. We are already in talks with some of the top insurance players in India. We also plan to work together with International players. Considering some of the projects are really huge we are open to collaborating with some of the existing MNCs in India as well as consultant firms,” said Khosla.
Khosla who was heading APAC Sales and focused on the Japanese markets, feels that there are several challenges as well. “Most of us in the industry are global delivery model players, and to operate and be successful in India needs a completely different mindset and approach. Besides in India one has to invest upfront. We have enough cash, which can be utilised in growing the domestic market,” he said. The company has close to $300 million (around Rs 1,500 crore) cash.
Patni is already pursuing some of the upcoming large deals both in the government and the private sector. Nasscom-McKinsey 2020 Perspective said that the domestic opportunity in BRIC nations will be $380-420 billion by 2020. Of this India domestic market opportunity will be 25 per cent.
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