i-flex flexes muscles in product licensing

BANGALORE: Disengaging itself from the existing practice of deploying its

solutions, i-flex, a name associated with software solutions for the financial

segment, will now license its software products through its partners. Instead of

having a huge team of implementing the product, i-flex will train its partners

in using and implementing them on client sites.

In this regard, the firm has already signed strategic alliances with

Accenture and IBM Global services. At least six other big names are to join the

fray as its implementation partners, said some firm officials, while speaking to

the CIOL Bureau.

Explaining the new strategy, i-flex corporate marketing-head, V Senthil

Kumar, said, "We don't require a huge team deployed in each of our clients

base. Instead, we can utilize their expertise for product enhancement and

development. Meanwhile, our partners will implement the product on our behalf,

while simultaneously offering consultation service and solutions to the

clients." But this seems contradictory to i-flex’s proposed plans to

recruit about 800 to 850 software professionals this year.

However, Kumar refused to divulge the proposed percentage of increase in

revenue from this new model of licensing. Currently the products division, which

includes support and maintenance, is contributing nearly 50 per cent of the

revenue for the company. The solutions division contributes to the rest of the

firm’s revenue.

i-flex, which registered revenue of Rs 206.3 crore for the financial year

1999-2000, is yet to announce its results for last year. "We have been

having a CAGR of 60 per cent in revenue figures and our forthcoming financial

performance should stand by it. Any significant increase in revenue from the

product licensing will get reflected during the current fiscal," said

Kumar.

It should also be noted that the firm is planning for a listing on Indian

stock exchanges by the end of this year, followed by listing in one of the

American bourses. Apparently the company has acquired permission for both the

listing. "The funds raised from both these listing will be utilized in

acquisitions. We are looking at products and firms in India and globally. These

acquisitions will help supplementing i-flex products and customers," says Kumar.