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Raja Simhan T.E.

Chennai , July 16

THE US-based $450-million Cadmus Communications Corporation has increased its outsourcing arrangement with the Mumbai-based Datamatics Technologies Ltd, even as Datamatics has opened a second dedicated offshore centre for Cadmus in Chennai.

The first one is in Mumbai, where about 400 Datamatics professionals work exclusively for Cadmus.

The Nasdaq-listed Cadmus provides service to scientific, technical, and medical (STM) publishers. With a market share of about 35 per cent, the company is the fifth largest periodical printer in the US. Cadmus derives over 45 per cent of its revenue from content services like editing, conversion of content and online peer review management services to scientific journals.

Mr Manish Modi, Managing Director & CEO, Datamatics, told Business Line that Cadmus recent increased its offshore requirement from Datamatics. Further, Cadmus wanted Datamatics to establish its second offshore centre in Chennai, a good STM market with a number of mathematical graduates.

Out of the Rs 60-crore revenue for the year ending March 31, 2003, for Datamatics, 14 per cent of it came from Cadmus. With the second centre opened recently, the revenue from Cadmus would grow further. "However, we have a policy to restrict revenue from a single client to 15 per cent," he said.

Datamatics is ranked fifth in India in the Nasscom ranking of ITES (IT-enabled services) companies. It is an end-to-end BPO (business process outsourcing) solution provider to the electronic publishing, healthcare, and finance and insurance industry verticals.

Mr Modi said that a couple of years ago Cadmus set up a dedicated facility outside the US and moved most of its publishing process offshore. Over the last 10 months the Datamatics' Cadmus team scaled up to convert over 1,200 pages per day of copy-edited manuscripts, about 200 electronic author submissions from different Cadmus customers and a further 2,000 pages a day of SGML and XML formats. This includes publications from over 20 different publishers, he said.

According to Mr Modi, the Chennai centre would have about 100 exclusive professionals working for Cadmus by the year-end, and about 250 for other sectors including legal, human resources, healthcare and publishing. Datamatics has 1,600 employees and 800 Knowledge Associates - the latter work from home for Datamatics.

The company is targeting a growth rate of above 50 per cent in the next two years by expanding its presence in the value-added scalable BPO services, he said.

According to Mr Modi, Cadmus has identified India as the only offshore base for outsourced services and plans to double and even triple its total manpower over the next three years.

Cadmus is one of the world's largest providers of outsourced services. About 70 of the world's top 100 scientific journals outsource their content development to Cadmus, he added.

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