Dear Shareholders goes to our progressive ecosystem of employeesIt is my privilege to write to you on this occasion as clients and partners. Ouremployees have made this we present our Annual Report for FY18. Your Com- possible withtheir strong customer focus relentless pany is emerging as the preferred digitaltransfor- efforts and an agile mindset. By creating advanced mation partner for some ofthe leading enterprises and agile solutions our employees are empower-across the globe.We have reported a growth of ing organizations to realize a new kind of potential'27.1% for FY18with digital revenues showing an they haven't thought of before. I wouldlike to ex-impressive 67.61% increase Y-o-Y. This superlative tend our heartiest gratitudeto our clients who have performance marks our future-readiness to acceler- believed in usand have given us an opportunity to ate clients' digital transformation journey. be a partof their transformational phase. What sets us apart from the competition is our focus onout-In 2017 we continued to live the philosophy of de- comes and our ability to learn andgrow with our livering infinite possibilities with technology and clients. Instead offollowing an abstract strategy of translated it into exceptional performance with meetingService Level Agreements (SLAs) we make our deeply-rooted industry expertise contextualincremental changes after carefully planning and knowledge and depth in the digital andintellectual accelerate digital transformation while neutralizing property. As we surgeahead we are signing several the potential barriers. I would also like to take thismega-deals that have strengthened our business opportunity to personally thank each of ourshare-model. Whether it was the Artificial Intelligence (AI) holders for their continuingsupport confidence deal that we signed with a large Travel & Hospital- and trust inour capabilities. ity Company or the deal with the largest medical technologymanufacturer in the US to redefine the Growing Digital Capabilities customerjourney using an advanced Cloud-based digital healthcare platform we have been helpingSocial Mobile Analytics and Cloud (SMAC) is the clients embrace digital transformationat their core. flavor of IT service companies. The size of the over-The credit of buildingfurther on our momentum all SMAC industry globally is expected to be close to $1 trillionby 2020. From the Indian software industries' point of view it will be $15 billion withinthe next three years and over $225 billion by 2020.
With increased automation and platform-based services analysts agreethat SMAC technologies will become table stakes and will allow the IT industry to offermore value to clients. The growth of IT companies will also be dictated by the evolvingdigital capabilities IoT 2.0 RPA Blockchain Artificial Intelligence Machine Learningand Conversational
Bots. IoT 2.0 brings intelligence to the edge devices. According toGartner an estimated 20 billion IoT edge devices will emerge by 2020.This brave new eraof edge computing will ensure near-real-time data analysis reduced bandwidth usagebetween the edge and the cloud and advanced AI. Robotics Process Automation enhancesoperational excellence. Gartner predicts that by 2020 40% of large global organizationswill adopt RPA. Industries like insurance financial services and retail have alreadytaken the lead while manufacturing healthcare and many others will increase thetraction in years to come. Blockchain redefines trust. Blockchain is emerging from theshadows and making its way into the future. The overall spend on the technology isexpected to grow to more than $2.1 million in the next year. Artificial Intelligencecreates a vir -tual workforce. Organizations are leveraging AI in various aspects of thebusiness. It delivers smarter intelligent decisions beyond robot-aided functions.Machine learning gaining traction in digital businesses. According to Gartner machinelearning is seeping into everything and will remain among the top technology trends forthe next five years. Con -versational Bots performs real-world tasks. Google has announcedGoogle Duplex a conversational bot that can make real-life conversations with humans tomake an appointment at a hair salon or a restaurant chain and much more. Thisgroundbreak-ing technology was announced by Sundar Pichai this year to help 60% of smallbusinesses in the US.
Against this backdrop your Company is playing a leading role inaccelerating enterprises digital transformation journey and focusing on these exponentialtechnologies to cross new frontiers of performance and deliver excellence.
Reflecting the growing importance of digital your
Company has been the biggest proponent of strategic innovation acrossmultiple areas. Our investments in next-generation transformational technology such asAugmented Realityare also playing a key role in delivering tangible value to our clients.Our passion for technology and commitment to building digital capabilities at scale hasdelivered exceptional levels of growth and performance to businesses. We're working on ourmission of transforming the digital ecosystem that integrates through cloud and edgecomputing giving an edge over traditional IoT bringing intelligence everywhere.
Awards and Recognitions
Your Company is seen as the disruptor of the status quo and our successin the past 1 year has been endorsed by prestigious awards and recognition. We were rankedthird time among the fastest growing technology company on the Deloitte Technology Fast50India 2017. This award is a testament of our continued focus on innovating and deliveringdigital transformation services while remaining agile and responsive to our client'sneeds.
Going the Extra Mile to Expand our Footprints
Last year saw a steady acceleration and we used the opportunity toacquire a new company to further our growth and transformation agendas. PlanetProacquisition opened the doorway to Singaporean and Indian markets with higher untappedpotential and a lot of mainstream opportunities. PlanetPro provides Salesforce.comAnalytics and Custom Program services to enterprise clients. The company specializes inimproving sales and marketing performance of businesses by delivering actionable insightsthrough analytics and leveraging the power of Salesforce.com and its ecosystem ofapplications. It also delivers bespoke programs designed to improve sales and marketingeffectiveness.
This new addition to Kellton Tech's ever-expanding global clout has notonly strengthened your Company's analytics offerings across functional domains andtechnology platforms but also leveraged its potential of becoming the next-level behemothin the digital innovation space.
Research and Innovation
Your Company is driven by an inherent tendency to push the learningagenda and innovate continuously. Our continued investments in research and innovationestablishing partnerships and getting our team future-ready in generating next-gentechnology advancement have strengthened our position in the market. We have developed anIoT-enabled AI platformOptimathat have helped differentiate Kellton Tech.Optima accelerates enterprises digital transformation journey through data managementworkflow management business process management predictive and prescriptive analyticsexponential growth in productivity and operational efficiency.
We are highly focused on simplifying the businesses complex tasks ofaggregating data and creating dashboards for various levels of management. Better leverageof technology and assets is ensured through a strong innovation thrust.
In addition to the investments in the innovation programs we are alsoaligning our investments with technology shifts and trends to strengthen our valueproposition and stay ahead in our journey of disrupting businesses.
Kellton Tech finds strength in its incredibly diverse inclusive andtalented workforce. It is for their sustained and honest efforts that we are dynamicallyevolving as a global technology leader and branching out to the Asia-Pacific region andother developing markets without an endpoint.
From industry leaders to mid-level managers we have hand-picked eachindividual to foster an environment of creativity excellence and ambition. The wholethrust of Kellton Tech's work force strategy is to upskill and reskill the employees andignite a wave of strong digital talent in the company. We continue to invest our energiesand thoughts into cultivating a healthy work force that aligns itself to the expectationsand needs of the customer.
On behalf of the Board of directors of Kellton Tech I want to againthank our clients employees shareholders and stakeholders for their continued supportand encouragement.