Financial Daily from THE HINDU group of publications
Thursday, Mar 14, 2002
Corporate - Outlook
ICICI Infotech bullish on products biz
MUMBAI, March 13
ICICI Infotech Services Ltd expects its products business to contribute 20 per cent of total revenues next year, up from the current share of 5 per cent, according to Mr V. Srinivasan, Managing Director and Chief Executive Officer, ICICI Infotech.
``We are aggressively positioning our products business to contribute a larger amount to total revenues. Software services, which currently account for 60 per cent of our business, will continue to grow; but the focus would be on products,'' said Mr Srinivasan.
``The strategy is to sell products in the domestic market as well as the Asia-Pacific region while establishing service expertise in developed countries. Eventually, though, we aim at providing both products and services as a complete package in both markets the focus will be on product-associated services,'' he said. For now, the company is upbeat about the recently launched core banking solution, Newton.
ICICI Infotech has entered into a five-year contract with IMS System Company for exclusively marketing Newton in India, Bangladesh and Sri Lanka. Newton was developed in Korea by IMS and has been implemented in five banks there.
``We have already made a pitch with four or five banks for core banking projects,'' Mr Srinivasan said. The company intends to target 25 per cent share of the Rs 500-crore core banking solutions market in India over a three-year period.
According to Mr P. Radhakrishna, Joint President, ICICI Infotech, around 40 professionals at the company's Bangalore development centre are currently working on localisation of the product to suit Indian banks' requirements.
Once the core banking projects go through, the company plans to hire functional experts with experience in banking domain. ``Currently we are recruiting people aggressively in the product segment for development, implementation etc,'' Mr Srinivasan said.
Apart from Newton, the company has added solutions to its basket of offerings by signing a memorandum of understanding with Merlin Software Technologies International, a developer of network-attached storage (NAS) appliances, for EssentialServe a combined storage, back up, mirroring and recovery package.
According to the MoU, ICICI's engineering group would make specific ``functional enhancements'' to Merlin's EssentialServe and SecureDVR, a network-attached digital video recorder.
``The automated back-up product is being developed here and will be marketed primarily in the Asia-Pacific by ICICI Infotech. Target clients in India would include those from our parent, ICICI's portfolio of corporates,'' Mr Srinivasan said.
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