Cybage looks to build its presence in the Indian market
By Arbind Gupta
Cybage Software Pvt Ltd, a technology consulting organization specialized in outsourced product engineering services, is now also evaluating opportunities in the Indian market. Though operating out of India, serving customers primarily in the US and EU, the Pune-based entity a leader in the technology and product engineering space, is now looking to increase its presence in the Indian market which currently contributes just around 1 per cent.
“All these years, our primarily focus has been the US and EU, and the same will continue going forward as well,” says Arun Nathani, MD & CEO, Cybage. “But, now, we want to increase our share in India and that can easily be increased by at least 1 per cent every year and with inorganic efforts, this can be scaled to 2-5 per cent per annum. In India, we are evaluating some inorganic opportunities at present.”
The company, a leader in the technology and product engineering space, has shown an impressive growth track record over the years. And it has done so without compromising on profitability. While serving around 200 customers, the company has also been growing consistently in the last 10 quarters. For 2019, despite subdued market condition, the company grew by about 17.5 per cent (distinctly above the industry rate) to Rs. 1106 crore. During the period, the company boasted of over 91 per cent customers who were with it earlier also. Notably, its top 20 customers on an average have been with it for more than 10 years.
In pursuant to its growth plan, Cybage, backed by over 6,100 employees and having presence in North America, UK, Europe, Japan, Australia and Singapore, inaugurated a 700-seater facility in Pune’s EON IT Park-2 in July 2019. This was Cybage's third development centre in Pune. In May 2019, the company had announced the acquisition of a 300-seater in GIFT City, Gandhinagar as well as the establishment of a strong foothold in North and Northwestern Europe, the US and Canada.
Relevant to customers
Cybage has been looking to maintain its overall growth momentum going ahead. And to improve its share in the Indian market, it has identified four companies in India. Depending upon the compatibility and other aspects, it may acquire one or two of these entities, for which purpose it has earmarked $20-30 million. “We have started the process over two months back and the final outcome will depend upon how the target company fits into our requirement,” affirms Nathani. “Besides, integration of manpower will also be a vital parameter.” Nathani is of the view that as a company, Cybage has positioned itself quite strongly in the market and is now being noticed more prominently by various stakeholders. Hence, now it is the time to leverage this condition and add to its growth strategy.
“We have been reinventing and have been relevant to the customers we serve.,” adds the Cybage CEO. “We have been a dependable quality partner and we consciously believe that it is an opportune time to monetize this to a certain extent.”
Nathani is also of the opinion that Indian companies have over the years changed quite significantly; and that now they are looking at technology adoption on a priority basis - something was not the case earlier. Besides, he also thinks that the Indian economy is big enough to be kept aside for a long time and, hence, there is need for a fresh stance. “India has its own strategy, as it acts as a launch pad for most of the new environment we are trying to get into. India forms the building blocks of the company as it helps it to become relevant globally,” argues Nathani.
Recently, ISG, a leading global Technology Research and Advisory firm has appreciated Cybage for its transition capabilities across geographies and sectors over the last two decades. While studying its end-to-end delivery system and analyzing the success stories to evaluate its transition framework, methodology, and processes, the report says that transitions at Cybage are planned and executed using well-defined plans that are customized as per a client’s business objectives. All the transition activities and its related aspects are managed efficiently along with multi-functional teams spanning across technologies, business operations, quality assurances to compliance.
“Cybage carries the reputation for transition execution excellence in the PES outsourcing market,” says Jan Erik Aase, Director and Principal Analyst, in his report. “With its data-driven framework, Cybage uses the power of machine learning and predictive analytics to manage and execute transitions that will exceed its clients’ expectations and differentiate itself in the market.”
You can read the original article in the Business India E-Magazine (Page 48): https://businessindia.co/emagazine/