The Hindu Business Line : Persistent designs `go to live' model for start-ups

Increased focus on four major verticals — telecom, infrastructure, ISV (independent software vendors) and tools, setting up of two facilities within the city and targeting the start-ups is what Pune-based Persistent Systems Pvt. Ltd has chalked out as its programme for the year.

The company is a player in the outsourced software product development.

Dr Anand Deshpande, Chairman and Managing Director, told presspersons that it has also initiated a `design for manufacturing' strategy through its new engagement model, `go to live'.

Targeted specifically at emerging software vendors and enterprises, the new model enables start-ups to quicken their time to market and focus on innovation and business growth. Dr Anand said out of its portfolio of 70 customers, about 40 came under the start-up category. He noted that they contributed to about 25-30 per cent of the company's total turnover last year.

New facility

He said the company is setting up a latest facility within the city for seating 2,500 people . This facility would be operational by December 2006 and would take in an investment of Rs 100 crore. The second facility, which is expected to be operational by July 2007, would also have a seating facility for 2,500 people and is located in the Phase I of Hinjewadi Infotech Park.

Asked whether this would mean that the company would be consolidating its entire presence at one location in the city, he said the intention is to look at setting up offices at various locations of the city so that employees could work closer home rather than trudging all the way across to the campus.

Dr Anand said the company has recruited about 250 people during the first quarter of the current year and is looking at a total recruitment of 1,000 for the year as against 600 last year.

Turnover, net up

Persistent Systems has recorded a turnover of Rs 216 crore for the fiscal ended March 2006 compared to Rs 147 crore for the year ended March 2005. He said the company is looking at a growth of 50 per cent year-on-year.

It has also registered an increase in net profit to Rs 41 crore from Rs 34 crore compared to the corresponding period last year and has added 39 customers in the fiscal 2005-06.

Dr Anand said the company last year had opted for expansion stage investment from venture capitalists, Intel Capital, Gabriel Venture Partners and Norwest Venture Partners.