Mastek to focus on outsourcing to boost growth

Nanda Kasabe & Rashida Bakait

MUMBAI: The Mumbai-based software services firm, Mastek has chalked out a six

pronged strategy for boosting its growth, in a bid to counter the effects of the

slowdown in the IT sector. The firm will focus on increasing outsourcing

projects for the Fortune 1000 firms.

Mastek chairman and managing director Ashank Desai said though Europe

continued to contribute a substantial part of its business in the form of

offshore projects, the company was planning to make inroads in UK. Europe

currently accounts for 50 per cent of the company’s revenue.

Mastek recently set up its office in Japan and completed a project for the

simulation of a wafer fabrication plant in Germany. "We are making special

efforts to tap markets in Netherlands and Switzerland. We are also mooting a

proposal to set up a subsidiary firm in Switzerland later this year," Desai

said. Mastek already has a subsidiary firm in Belgium.

He also announced plans to venture into new areas of technology areas such as

the UTMS and embedded systems. A large order from Japan involves offshore

development work in the field of telecom, he said. He, however, refused to

divulge further details of the project.

Mastek has formed a special cell in the company to execute the strategy. The

cell will receive proposals and evaluate them in line with interests of the

company, he said. The six-point strategy on the company agenda includes

increasing offshore work, building new technologies and products, forming

alliances and joint ventures, building domain knowledge and making new

acquisitions.

Desai also cited Mastek’s recent joint venture (JV) with Deloitte

Consulting firm, as part of its efforts in chalking out a comprehensive offshore

strategy. The JV will offer software services in areas such as application

development, systems implementation and integration and IT.

The JV is the first offshore delivery relationship formed by Deloitte

Consulting. Although the name of the new firm is yet to be finalized, nearly 600

professionals will be recruited for the company within the next three years, he

said.

The Mastek Group announced total income of Rs 260.87 crore for the period

July 2000 to June 2001, an increase of 2.8 per cent over Rs 253.73 crore for the

corresponding period in the previous year. Desai expects growth rate of 10 to 15

per cent this year. During the quarter, Mastek has taken a charge of Rs 5.58

crore with respect to its investment in Varstreet.