Global Edge to ride tech spend

Global Edge Software, a Bangalore-based player in the embedded and wireless software services space, is anticipating rapid growth over the next few years in step with the global market.

The market for home surveillance, video conferencing, gaming and entertainment is likely to explode, keeping companies like Global Edge busy.

More global development spend means more work for Global Edge because it counts among its customers cutting-edge firms like Analog Devices, Broadcom, HP, Sony and Samsung.

The 12-year-old firm, which clocked a turnover of $3.8 million in 2003-04, wishes to double it in three years (by 2006-07), said M P Kumar, chairman and CEO.

In the current year (2004-05) its turnover is likely to exceed $5 million. "The outlook for both services and product firms in its space is very good," he adds.

The growth is also likely to be accompanied by improved margins. After achieving a net margin (profit after tax) of 8 per cent last year, it is looking at a 10 per cent figure for the current year.

The margins would have been higher, but for the fact that the company spends 10 per cent of its revenue in R&D involving new technologies.

It has evolved a solution building mechanism which it has named EDGE for global engineering teams in the embedded space. Embedded systems development needs close interaction between teams and the better the interaction the quicker the development. EDGE facilitates this cooperative development by global teams.

Though its business is in services, Global Edge harbours dreams of producing some of its own IP, in the manner of Sasken.

"Our idea is to build components, riding piggyback on products, and become an ODM. We are into field testing and in discussions with product firms. We have a complete solution in VOIP," says Kumar, but confesses that "we are still short in marketing".

In view of its positive margins, the GTV-funded company finds internal accruals enough to take care of future growth. Within the next two years, its headcount is likely to go up from the present 250 to 450.