Polaris Software May Sew Up Recast By January
The Chennai-based Polaris Software Labs Ltd is planning to complete its restructuring by January 2002. Through the revamp the software solutions provider hopes to attain the capability of handling multi-clients and return back to its historical high growth rate.
Arun Jain, chairman and managing director, said, "We consider the current phase of slow growth as an opportunity in restructuring and reorganising ourselves in becoming an end-to-end solutions provider in banking, financial services and insurance (BFSI) segment. We are confident of achieving 15 per cent quarter-on-quarter growth once the exercise is complete."
Jain explained that many Fortune 100 companies with an average infotech budget of $1 billion were expected to choose India as part of their global outsourcing strategy. "Only vendors with sufficient competency level and scalability will be able to qualify for obtaining such orders and we intend to be among the top four vendors in BFSI segment," he added.
The statement assumes significance as Polaris during the quarter ended June 30, 2001 posted a sequential drop in topline and net profit of 9.7 per cent and 15 per cent, respectively. Operating margin too dropped by 170 basis points for the quarter-ended June compared with the previous quarter.
As per the new organisational structure, strategic relationship and delivery units will form the cash engine and strategic practice units will build competencies to provide right growth engine. "We have not revised our target turnover of Rs 1,000 crore by 2004 and are hopeful of achieving it," he said.
To achieve this, Jain said, the company would have to rope 30 to 40 large relationships with an average revenue between $3 million and $10 million from each of the clients. At present, Polaris has 38 accounts that have a turnover of more than US$1 billion.
On the on-going legal battle with Data Inc, in the US courts, Jain said it was getting delayed owing to the postponement of hearings. Earlier in March, he had said the court battle would be over by June 2001.