Synygy lines up Rs 50 cr expansion

Synygy Inc, provider of enterprise incentive management (EIM) solutions and supplier of software and services, is planning to invest Rs 50 crore for its expansion activities in India.

The company in a press release said the investment would be deployed in doubling the current infrastructure set up in Pune as well doubling the employee count to 300 by 2005-end.

Mark A Stiffler, Synygy's founder, president, and CEO, who was recently on a visit to the company's Pune office, in the release said, "Our employees here in India are part of the global Synygy organisation, serving all clients in all countries. Over the last year, operations in India have become fully self-sufficient, able to lead and deliver on any kind of task or project globally. We've even had people in India train new employees in the US. Our Pune office is not just a back-end operation or an R&D centre for Synygy but within a year it has become Synygy's Asian headquarters, serving clients across India, Southeast Asia, and Australia."

Synygy in Pune has grown from 11 employees in January 2004 to over 150 people by December 2004.

An integral part of Synygy, operations in India are part of the global effort to speed up the delivery of new software products and enhance service to global clients through faster software implementations and 24-hour managed services, said the release.

The release explains that globally Synygy continued to grow in 2004 with the largest growth occurring in implementation services, which nearly doubled as compared to the previous year as a result of software implementations with new clients and maintenance of plan changes for an expanded client base. Net profit rose 21 per cent in the year 2004.

Synygy's financial success was driven by the addition of new clients in its core markets of financial services and life sciences, including CTX Mortgage, Blue Cross Blue Shield of Louisiana and Cigna, and the pharmaceutical companies Ortho McNeil, Fujisawa, Abbott, Yamanouchi, and GlaxoSmithKline.

During 2004, Synygy spent over 20 per cent of its revenues on research and development. With a client retention rate of 97 per cent and the majority of Synygy's revenue being recurring in nature due to a subscription-oriented business model, Synygy claims to have already booked a solid revenue base for 2005.