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Preeti Pandey

As part of the growth strategy, Mastek has shifted gears to focus on providing software services from being a product-oriented company, at a time when most software firms are headed in the opposite direction to move up the software value chain.

Mumbai Aug. 28

IN a bid to boost its growth, Mastek Ltd is focussing on expanding its $1-million clients' portfolio and pursuing acquisitions and employee augmentation.

The software firm plans to compete with global consultancy firms for international software services projects.

"Our target is to grow the one-million dollar client accounts into a three to five million dollar five-year contracts. We are looking at acquiring 80-100 strategic customers and would be adding 10-15 new accounts", Mr Sudhakar Ram, Group CEO, Mastek, told Business Line.

"For this, we need to grow in scale since this has become important now for a software firm to bag major international contracts. Moreover, this critical mass would help us once the economic revival opens the floodgates of outsourcing to Indian companies," he said.

Outlining the company's growth roadmap, Mr Ram said Mastek's immediate thrust was on increasing its sectoral focus in the banking, finance and insurance verticals.

Ongoing projects include development of productivity tool for a US-based company, enabling insurance claims processing for a leading credit life firm and redoing a derivatives trading platform for a UK firm, according to Mr Ram.

The future strategy includes a ramp-up of the existing employee base of 1,700 people with plans to hire 3,000-4,000 software professionals and setting up a new development centre in Chennai over the next three years.

As part of the growth strategy, Mastek has shifted gears to focus on providing software services from being a product-oriented company, at a time when most software firms are headed in the opposite direction to move up the software value chain.

"We are still tech-oriented, but our tech cell is more proactive and our focus is to not only to create technology, but also application of technology. We did not participate in the offshore opportunity brought on by Y2K; since 2001 however our shift to software services is paying off. The key challenge now is grow the million dollar deals," observed the Mastek's CEO.

This move to the services platform has resulted in Mastek foraying into the business process outsourcing space through a joint venture partnership with Carreker Corporation.

The outfit provides BPO services such as payment processing and cheque processing for the banking and financial segment with plans to extend this to include share registration, brokerage and share administration.

Though the software enterprise is not looking at acquisitions currently, the company "has in place a team which is looking at acquisitions".

"This might be a major part of our strategy when the market cap increases. As of now we are seeking joint venture partners who would bring in the technology and domain expertise in areas where Mastek does not have the same. A team is scouting for partnerships in the US and UK," added Mr Ram.

Mastek was one of the companies named alongside Digital GlobalSoft, Hinduja TMT, Balaji Telefilms and United Phosphorus wherein Alliance Mutual Fund had failed to make adequate disclosures when it acquired more than five per cent or its shareholdings changed by more than two per cent.

"Whenever there was movement beyond the 5 per cent level, we notified the Securites and Exchange Board of India.

"We have been absolutely transparent and there was no way insider information could have been given. We have always been rated high on corporate governance and in fact we have been told we are too transparent," Mr Ram said.

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