Getting The Basics Right

Last year, it grew by over 40% to clock Rs 176 crore in revenue, all credit to Sudhir's
relentless focus on service and strong adherence to business basics.

Bangalore-based Network Solutions' (Netsol) name is not new to those in the
business of providing solutions. The company with a decade of experience and
expertise in the field of networking has not only been able to record enviable
growth year after year, it has also come to be recognized as a leading systems
integrator in the country.

What also gives this company a far greater repute in the market as compared
to its contemporary SIs is its focused approach that centers around networking
and networking-related business opportunities.

And the person who has been driving the phenomenal growth path that the
company has charted so far is its MD Sudhir Sarma. Absolutely unassuming and
modest in nature, Sudhir doesn't want to label his company as a network
integrator. "Netsol is not just a mere network integrator, instead it's a
solution integrator," says he. Rightly so, because Netsol in its due course
of evolution has gone far beyond just implementing a networking project.
Today its business happens by way of designing, building and managing networks,
to put in very simple terms.

EVOLVING JUST RIGHT

In this process of evolving his business, Sudhir has steered the company to
maintain an ideal balance between its services and products revenue. "40%
of our turnover is contributed by services alone and its share to our profits is
far more higher," points he out.

In an attempt to uniquely differentiate Netsol from its competition, Sudhir
took help of some innovative thinking. The company got into productizing its
software tools that it used to provide for the purpose of network, system or
application management.

Of the Rs 176 crore turnover (including dollar billing)that the company
clocked in 2003-04, nearly Rs 8 crore came from its indigenously-developed
software products. And so proud and confident is Sudhir of these tools, that he
puts their quality and reliability at par and sometimes even better than similar
products offered by many other MNCs.

"In fact, our software tools will give us a great advantage for our
offshore ventures, where the competition is far tougher," remarks Sudhir.
He further elaborates on the strategy that Netsol would adopt while aiming to
tap the international market.

He is looking at strategic tie-ups in the form of marketing alliances and JV
to address the market in US, Europe and APac region. "We expect our
overseas business to contribute between 10-15% to the company's revenue,"
says he.

Even in its international business, Netsol is firm about one thing. That,
services will continue to be company's main plank. Sudhir is also confident
that the offshore delivery model that the company plans to adopt will fetch good
benefits. He is betting heavily on opportunities in remote network management.
"Already the market in developed economies have come face-to-face with the
advantages of remote management. To the clients, an outsourced model for IT
infrastructure management gel well with their business objectives and also
deliver them a great cost advantage," says he.

UNSWERVING GROWTH

The activity related to overseas business development doesn't mean that
Sudhir is letting his focus on the domestic market blur. The company has grown
tremendously (50.8%) last fiscal from its turnover of Rs 126 crore in 2002-03.
In terms of headcount too, Netsol has increased by nearly 50%. The company has
now 1,000 people on its roll as against 700 about an year ago.

"Our seven sales offices and 30 project locations across the country,
ensure that our footprint is present in all significant geography and that we
are better-equipped to undertake a multi-location project in a far better manner
than many others," says Sudhir.

He also points out clearly that Netsol is neither a vendor-biased nor a
vertical-centric company. "As a solution provider, we use
products/solutions from the vendor, which best meet our customer's
requirements. And as far as verticals are concerned, we have businesses coming
from all the leading verticals: export-oriented units, BFSI, ITES and
telecom," states he.

EYE-CATCHING ACTION

Maintained strong focus on activities around networking Ramped up service revenues to contribute nearly 40% of overall turnover Aggressive thrust on company's own software products.

And, according to Sudhir, it is this judicious diversification of business
across various verticals that has ensured healthy growth for Netsol even at
times when the entire industry was sulking. "At any given time, some or the
other vertical was experiencing a boom, so a consistent revenue growth was never
a problem," explains he.

And when asked about the growth projections for 2004-05, Sudhir is at his
modest best. "We don't typically worry about growth targets. My belief is
that growth will happen anyways as long as your basics are right," puts he
quite philosophically.

And needless to say, the way Sudhir along with his company has kept his
basics right-be it their focus on services, or innovative strategies, or
venture into overseas market, Netsol may well become one of the top three SIs in
the country, in a not-too-distant future.

GOLDIE