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SSI is India's third largest computer education provider, with an emphasis on high-end training. It offers the latest in emerging technologies and client-server computing in its education programmes. It has ventured into software development in the second quarter of 1999-2000 and focuses on five key verticals -- securities, healthcare, insurance, telecom and finance. SSI recently acquired US-based Indigo Technologies for a headstart into the securities verticals and has entered into a joint venture with US-based NASD, the parent organisation of NASDAQ to launch its securities TESA (The Electronics Securities Architecture) products.
SSI has finalised a $100 million GDR issue to fund its software development centre in Chennai, which will house over 2000 people and work on various software products in the chosen verticals. SSI had recently acquired Inndsoft, a Chennai computer training company. Currently, SSI has around 150 offices across the country and a wholly-owned subsidiary in the US. K S Suresh, chairman and managing director, spoke to Rakesh about the company's future strategies.
Q: SSI has been very aggressive in acquisitions. Are these acquisitions driven by specific technology areas or to gain entry in the US markets?
A: We have always looked ahead at growth initiatives with a mission to emerge as an end to end IT solutions architect. We believe that organic growth is one way to achieve this goal but simultaneously we are also exploring possibilities of acquiring companies with proven domain skills, state-of-the-art products and an established client base. Such acquisitions give us a headstart in new business areas along with market presence in a reduced time frame. We saw tremendous growth opportunities in main-focussed software development and chose to develop software and applications for vertically integrated industries, including securities trading, banking, healthcare, insurance and telecom.
Our first acquisition, of Indigo Technologies last October, gave us a headstart in the securities trading vertical, with products like SecuraTrade; a web based security broking software, and TESA. After our tie-up with NASD, we have emerged as a global player in this segment. The acquisition of Inndsoft has given a thrust to our plans of emerging as a key player in the global CBTs markets for high-end education content. While our 3rd Agenda is helping both our education and software development businesses to integrate the services to the web.
Q: SSI has now moved into software services. Do you perceive IT services as a high growth area?
A: After consolidating our position as market leaders in the high-end IT education industry, foraying into software services was a conscious decision in line with our plans to emerge as an end-to-end IT solutions architect. IT services, especially in the verticals that we have chosen to focus on, present tremendous growth opportunities. Our domain-focused business model will be more relevant to the direction the industry is taking today.
Q: What revenues do you expect in IT services and training in future?
A: We have been consistently growing above the industry average. Our education business has expanded its reach from around 150 centres to about 350 centres in the last one year and it will deliver IT education through new age media like CBTs and the Internet. The division has also aggressively expanded its operations abroad to cover the emerging IT education markets of Sri Lanka, Bangladesh, Nepal, Hong Kong and China. IT education continues to remain our core business activity and we are adding more value to it. The division presently contributes over 80 per cent of the group revenues.
SSI Technologies, the software export division formed in mid-1999, with its vertical focus development strategy has already signed up projects with a prestigious clientele that includes development work for NASDAQ, Japan and Europe. This division will register three digit growth percentages for the first two-three years and eventually we shall have a well-balanced revenue contribution from IT training and software development divisions.
Q: What opportunities do you seen from the joint venture with NASD?
A: Our joint venture with NASD has helped us emerge as a global player in the securities trading vertical. With our proven product and technology strengths complemented by the expertise brought in by NASDAQ, we are currently in a position to be able to offer the best solutions available for automating new generation stock exchanges across the globe. Subsequent to our partnering with NASD, we now get better recognition for the services that we offer and command better international prices for our development work.
Q: SSI has two more divisions SSI Enterprise Support and SSI Web Initiatives. How will these complement IT and training businesses?
A: SSI Web Initiatives is operational as an umbrella for all key undertakings in the Internet space. This division will look at the development of vertically integrated application service provider, leveraging on the vertical specific domain knowledge available through SSI Technologies. The research and development structures of the ISO 9001 certified content development group of SSI education and the web development expertise of the 3rd Agenda.
SSI Enterprise support provides software sales, installation and support to a host of corporate houses in India that include the Department of Telecommunications, Madras Fertilizers Ltd., Life Insurance Corporation, Southern Railway, HCL Technologies, among others. The relationships built with these corporate houses help us extend our scope of the services to cover corporate training; web development and possible e-commerce related development and solutions.
