Sasken aims for more product realisations

Sasken Communication which presently derives 15 per cent of its revenues from products business, has said that it aims to move a greater product realisation and product ownership with all its customers.

Sasken helps its telecom clients speed product development through a combination of ready-to-use technology blocks and services.

Rajiv Mody, chairman & CEO, Sasken said: "The products business is unique in the sense that it is a long-term proposition. Over the past few quarters, we have been working on shifting the focus of this business model from a licensing model to a royalty model. We expect that this shift will help reduce the volatility in our products revenues. However, we anticipate the royalty revenues are several quarters away, and in the meantime the volatility due to licensing revenues will continue."

The company which has consolidated revenues at Rs 155 crore, has said that with an articulated strategy of connecting all the dots in the telecom value chain, it has been incubating a new offering to customers in the service provider space globally.

"On the products side, the past quarter has been exciting for us. Our focus on creating intellectual property and sustaining the spirit of innovation has meant that our products business is well on track. One significant new initiative we have rolled out this quarter has been the launch of an integrated software solutions suite for the mobile handsets. The products business witnessed healthy revenue growth on the back of one non-royalty based licensing deal that paid off," Mody added.

Sasken's present portfolio of products include Multimedia Applications and codecs which enable handset manufacturers provide a rich multimedia experience to the consumers, Wireless Protocol Stacks offering a path to next generation wireless devices besides its range of DSL software solutions for licensing to DSL device manufacturers.

Mody added that they are seeing the acceptance of India as a global hub, not just for offshoring, but also for outsourcing of critical R&D services and they will continue to stay firmly on this path.

The company presently employs around 2,000 professionals and by 2007 it expects products line of business to contribute in a healthy way.