Polaris Financial denies reports on sales of services business

Reports had said company in touch with various firms including Cognizant Technology Solutions, Wipro and Larson & Toubro related to sales of services business

Financial technology firm Polaris Financial Technologies has said that the reports about the company planning to sell its services business are just speculations.

Speaking to reporters while announcing its plans to grow with the support of a recently launched design centre, Arun Jain, chairman and CEO of Polaris Financial Technologies said, "Whenever there is a restructuring, we hear such things. We have been hearing such speculations for several years. I am fed up with such speculative reports."

It may be noted that there has been reports in past several months that the company is in touch with various firms including Cognizant Technology Solutions, Wipro and Larsen & Toubro related to sales of the services business.

The company has restructured its operations with clear identity to increase the growth. The services business is around $340 million revenue while the Global Transaction Banking business is expected to be at $50-60 million, core banking system at around $40 million and the comparatively new Insurance business at $12 million, during the current year, he said.

Polaris has earlier announced that based on leadership deliberations and recommendations from Boston Consulting Group (BCG), in January 2013, the Board of Directors of the Company authorised the management team to explore options that would provide an impetus for the next stage of its growth, and maximise shareholder value.

A Task Force was set up with senior leaders in the Company and after this, the Company has announced the restructuring of its business into separate Services and Products divisions.

The company today said that its design center, 8012 FT Design Centre, has received 20 clients in thre months from its launch. Polaris has established 8012 FT Design Centre, a design centre for financial institutions, in Chennai with a total investment of around $10 million.

The customers can work collaboratively with the vendor’s development teams on applications and systems in the financial application design centre. The centre marks a fourth phase in the development of Polaris, which has focussed on financial technology since its beginnings in services and outsourcing in 1993, said company officials.