Growing by M&A – The Idhasoft story
SOURCE: ExpressIndia
DATE: Sept 2nd, 2008
Established in December 2006, Idhasoft provides end-to-end solutions and is serving enterprise customers in the US, Europe and Asia, across retail, banking, financial services, manufacturing, healthcare and insurance domains. The company’s founders, Ramesh Subramaniam and Alok Pathak, wanted to create a unique business model, which would let it grow both organically and inorganically. The motivation behind the establishment of the organization was to create a multicultural and multiracial global organization that leveraged the diversified skills of its human resources.
Major acquisitions
The company came into the limelight when it acquired over 17 organizations within a span of six months (14 were US based and three were in India) and successfully integrated the same.
This is not to say that the organization did not face challenges. “We entered into the IT and ITES space, and had to compete with experienced players, especially in the US, and what is more important, we had to be unique and compete with large consulting companies such as Accenture and Capgemini,” said Ramesh Subramaniam, Managing Director, Idhasoft. The global economy was heading for a major financial crunch at that point, and even raising money was a major problem.
Performance and strategy
The central point of the business being growth, Idhasoft managed to steer through all the challenges that threatened to inundate it and sustain itself in the Indian market. The current revenue of the company is $100 million (top line).
2007-2008 has been a milestone in the company’s growth, and it has continued its momentum of client acquisitions globally.
The company’s growth strategy has been to acquire small IT companies operating in niche domains and integrate the same into its operations so that it grows at a faster rate. An effective and aggressive entrepreneurial management style has been used optimally.
Business offerings
The organization is divided into various business units, namely Oracle, SAP, a range of enterprise resource planning applications, retail, business intelligence and quality assurance.
It has software licensing arrangements with leading companies such as Oracle, SAP, IBM and Microsoft, etc. “We have two units which focus on Oracle and SAP. For both, we have been partners, providing an end-to-end solution, including product licensing, technology and services licensing, implementation services, post implementation and management services. Our emphasis on a particular vertical is based on the needs of a particular geography,” stated Subramaniam.
In the US, Idhasoft focuses on the manufacturing, retail, services and government domains. In India, its focus is on healthcare, retail and services segments. “We strongly believe there are enough solutions in the market, but what is lacking is packaging, offering a solution to the customer when he wants it, and not pushing something which he has no need for,” pointed out Subramaniam.
The organization provides a range of IT services, from software application development and strategic IT consulting to recruitment process outsourcing, and implements third party enterprise-wide products, from Oracle, SAP, Cognos and Tibco.
Projects and development centers
SAP projects are important for Idhasoft, which has five customers in that area. The company has three customers for Oracle projects. “We have done more than 100 new projects and at any given time, we have about 50-60 projects being carried out across the company. The significant projects are in the retail and SAP.”
Idhasoft is headquartered in Mumbai. The company offers data centers, quality assurance and testing labs, technology innovation, and research and development labs. It has software labs and development centers situated at Redwood City and Atlanta, US, Hyderabad, Gurgaon, Chennai and Bangalore.
The company has 725 employees at its US based development centers and offices. They are broadly classified as SAP and Oracle functional and technical, the rest being back-office sales and accounting people. The organization is highly structured and the management believes in a hierarchical system.
Projects and development centers
SAP projects are important for Idhasoft, which has five customers in that area. The company has three customers for Oracle projects. “We have done more than 100 new projects and at any given time, we have about 50-60 projects being carried out across the company. The significant projects are in the retail and SAP.”
Idhasoft is headquartered in Mumbai. The company offers data centers, quality assurance and testing labs, technology innovation, and research and development labs. It has software labs and development centers situated at Redwood City and Atlanta, US, Hyderabad, Gurgaon, Chennai and Bangalore.
The company has 725 employees at its US based development centers and offices. They are broadly classified as SAP and Oracle functional and technical, the rest being back-office sales and accounting people. The organization is highly structured and the management believes in a hierarchical system.
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