Datacraft to retain separate identity

Written by Rachana Khanzode | Mumbai | Updated: Nov 18 2010, 07:31am hrs
Mumbai-based IT solutions and services provider Datacraft, a subsidiary of South African firm Dimension Data that was acquired by Japan's NTT for $3.2 billion in July, will continue its business as a separate entity, Datacraft CEO Sunil Manglore said. Datacraft, which focuses on the Asia business, with India as one of the major markets, will look at leveraging NTT's IP (intellectual property) in application and networks to bag large contracts in this space.

Since the overlaps with NTT is minimal, we look forward to have an access to the benefits of the spends on research & development (R&D) that NTT does in the network and applications side. We would now jointly bid for large outsourcing contracts, where the application component comes for operations and maintenance, Manglore said. Earlier, we had to partner for these kind of contracts with other application providers. But now, with NTT having these capabilities, we can jointly bid and continue to support our global clients from India.

Datacraft, a system integrator, gets about 65% of its revenues from products and about 30% from services. But the company now wants to focus more on the services business. We want to increase our revenues from services to 50% from the present 30%, Manglore said. During the last financial year, Datacraft had seen an impact on its top line on the back of reduced demand for products by multinational and financial services clients. However, it is now witnessing a recovery. The finance, systems & infrastructure (FS&I) clients are back on track and we are witnessing foreign firms to start spending, Manglore said. FS&I contributes about 30% to the revenues of Datacraft; media & communications contributes 25%; IT/ITeS contributes about 20%, while manufacturing and government projects contribute 20% and 5%, respectively.

We are seeing telecom service providers spending on infrastructure augmentation as they add more subscribers. Also, with 3G and WiMAX expected soon, the need for services like securing networks, performance optimisation and security is going to increase, he said. We are in the process of augmenting some of their (telecom service providers') existing backhaul and therefore we see more contracts flowing in.

The firm, which has 1,100 employees in India, is also looking at increasing its headcount by 10-15%.