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Having carved its name in Progress database consulting and MFG/PRO support services, software and solutions company JK Technosoft (JKT) is expanding its product portfolio to include service and technology offerings
In an interview with Pragati Simlote of CyberMedia News, JKT software service & strategic initiatives VP Rajiv Mittal and JKT executive director Satish Gupta share the company’s plans and focus areas going forward.
How has the journey been for JKT?
Since our inception in 1994, JKT has been focused on Progress database. Till mid last year, JKT was also distributing Progress in India, but now we are only focused on providing services around this database. We currently provide Progress consulting and MFG/PRO support services and are expanding our portfolio to provide development and consulting services, independent testing services, remote helpdesk and technology offerings like web technologies based on Microsoft and Java, ERP packages like SAP apart from MFG/PRO.
Going forward, which are the specific areas that you are targeting?
In order to not spread ourselves too thin, we decided to create niches for ourselves. We are focusing two verticals – manufacturing and healthcare. Considerable growth potential exists in healthcare and we have invested a lot of money in developing a hospital management system (HMS).
Since the last two years, we have been investing in HMS and the returns on investment have started coming in. 'HMS' is a fully integrated hospital management system that caters to the clinical, administrative and financial needs of hospitals. It is targeted towards small hospitals with 50-500 beds. The average deal size including the license and implementation cost is around Rs 8 lakh - Rs 10 lakh.
We provide pure consulting services for manufacturing companies who have not implemented any IT application. We help them in re-engineering processes so that they can implement packages like SAP, MFG/PRO, etc. We also partner with companies like IBM, Accenture, etc., which do large SAP implementations project, and provide post implementation support services.
We are also working on satellite application development. As cost of licenses on a web based environment is very high, we are developing value added applications, which sit on top of licenses. These would be based on .NET and Java and would interface with SAP and MFG/PRO. We are also working on packaged satellite services as a framework, which we can then customize and sell to companies.
What are JKT’s expansion plans internationally?
JKT has 100 per cent subsidiary companies based in the UK and the US. To further strengthen our international sales and marketing arm, we have entered into business partnership programs in different countries besides having our own sales force. We have already tied up with companies in Japan and Northern Ireland and are in the process of signing up with a company in one of the Scandanavian countries.
We have already bagged a services order from an Irish company and plan to open our own office in Ireland in June. This would act as a nearshore center for our UK business.
What kind of revenues are you looking at?
We doubled our revenues in FY 2005-06 to Rs 37 crore and had a headcount of 400 people as of March 2006. We had posted revenues of Rs 17 crore and had a headcount of 195 professionals as of March 2005. We are again targeting a 100 per cent growth in this financial year.
Currently, 34 per cent of the company’s revenue comes from Progress consulting, 24 per cent from enterprise solutions (ERP consulting and packaged software implementation), five per cent from product services and the rest from application development services.
Fifty-four per cent of the company’s business comes from Europe, 20 per cent from the US and 20 per cent from India. We expect the European business to grow further but are also increasing the focus on the untapped US market.
What would be the company’s growth drivers?
The growth would come from our US focus, HMS implementations, testing services – executing both international and domestic projects, etc. Services area is growing very fast. We have good domain as well as tool knowledge and would use this synergy as a fuel for growth.
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