Package Implementation Spells Big Bucks For IT Cos

Chennai: | Updated: May 31 2002, 05:30am hrs
The package implementation service being offered by Information Technology services firms has seen a lot of customers. Top tier companies are seeing a significant portion of their revenue coming in from the service.

We have over 1,000 professionals working in the package implementation service. About 500 employees are skilled in SAP services. We are very strong in the financial service and manufacturing segments, says the Satyam Computer Services Ltd spokesperson.

About 14 per cent of the companys revenue came from package implementation in fiscal 2002 against six per cent in fiscal 2001.

In the case of Infosys Technologies Ltd, about 11 per cent of the revenues was from package implementation during the fourth quarter ended March 2002, as against 8.4 per cent during the corresponding period in the previous year.

With the advent of e-business, global corporations are moving towards packaged software integration and systems integration. Gone are the days when software would be developed using 100 person-years effort. The two key packaged solution software that have seen an upside recently are ERP and CRM products, says Mr R Chandra Sekaran, senior vice-president, Cognizant Technology Solutions (Cognizant).

Cognizant has seen a good appreciation in revenue from packaged software - especially ERP and CRM products -in the last two quarters.

The reasons are many. ERP packages, in the late nineties, were implemented by the Big 5 consulting companies who understood the business processes well. Now, with Indian companies having understood that space well, this business is coming to them. Also ERP packages, implemented in the last three years, lend themselves to maintenance, upgrade and enhancement using the onsite-offshore model.

This is also resulting in increased business, he adds.

With respect to CRM, companies coming out of the downturn are loosening their purse strings and making investments in strengthening customer experience and relationship.

This has led to increased implementations and companies such as Cognizant are servicing this market. They are well placed to capitalise on new opportunities due to the extensive domain knowledge garnered in different verticals over years.

Also, recruitment of key practice leaders and business school professionals is an important factor in aiding growth, he adds.

Mid-sized software companies such as Polaris Software Labs Ltd (Polaris) are also seeing a lot of traction in the package implementation service. The company recently bagged a major order from Snecma Moteurs, an Euro-French aerospace propulsion firm for an ERP implementation.