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Patni Computer Systems Limited
Company typePublic BSE: 532517
Nasdaq: PTI
IndustrySoftware Services
Founded10 February 1978
HeadquartersMumbai, India
Key peopleNarendra Patni (Chairman) Jeya Kumar (CEO)
ServicesSoftware Services & Outsourcing
RevenueIncrease ₹3,164.75 crore (US$380 million) (2010)
Net incomeIncrease ₹586.61 crore (US$70 million) (2010)
Number of employees15000 (As on May 2009)
ParentIGATE
Websitewww.patni.com

Patni Computer Systems Ltd., is a provider of Information Technology services and business solutions. The company employs over 15000 people, and has 23 international offices across the Americas, Europe, and Asia-Pacific, as well as offshore development centres in 8 cities in India. Patni's clients include more than 400 Fortune 1000 companies.

History

India, Narendra K. Patni first came to the US in 1964 on an MIT fellowship and in the early 1970s, he was appointed the president of Forrester Consulting Group, which advised companies and government agencies on technology issues.

While there, he became aware of the benefits of outsourcing during a project involving advance level typesetting. “The best way to do it is where the labor is cheaper”, he said and so was born the first outsourcing companies in India.

The Beginning

The name of the company was initially Data Conversion Inc in 1972. Narendra Patni and his wife Poonam started this experiment in their house, naming one room as ‘US’ and the other as ‘India’. In one room, they wrote instructions to convert data from paper documents to computers. In another room, a group of MIT students typed out the data into a Flexowriter machine that spat out papered out court documents for LexisNexis, movie summaries for American Film Institute and catalogs for American Mathematical Society. Each week boxes of paper tapes were flown to US for processing through readers and conversion into magnetic tapes that was fed into computers. This experiment has mushroomed into a business empire and a global phenomenon that is fuelling productivity.

This was Patni's first step into the realm of software services. By late 1970s the company had garnered enough foreign exchange to take the next step forward. Patni came up with the idea of importing multi user server systems and selling computer time. Eventually, an agreement with US based computer manufacturer Data General to supply computer systems through satellite links helped create Patni Computer Systems in 1978. The company was incorporated in India on 10 February 1978 under the Indian Companies Act, 1956.

Around the same time Naren Patni had the idea of software development opportunities from Data General to be delivered from India. And they got the projects! Mr. Patni’s dream of leveraging India as a high quality and low cost delivery base became a reality when in 1986 India’s first ODC (Offshore Delivery Centre) for Data General was set up. This was the start as Patni successfully initiated and developed the outsourcing business model – which flourished into one of the largest industries worldwide, connecting the world in ways that was unimaginable some time ago.

During the early 1990s the company was too focused on its hardware market and couldn’t leverage the growth of software opportunities. It was then that Naren Patni roped in consulting group McKinsey to recommend how to scale up their business. The firm recommended massive restructuring of the organization into strategic business units based on market segments and technological expertise supported by horizontal groups. From an 80 crore company in 1996, the company’s revenues have grown to 656 million USD till 2009.

File:Narendra Patni 300.jpg
Narendra Patni

Global Expansion

The company’s global expansion began when they set up an office in London UK in 1993. It was followed by a surge of expansion in different parts of United States as well as in various European and Asian countries including Japan. Along with offices pan-India, now Patni has 28 offices worldwide to help service regional customers better.

This expansion was not just geographical. Across the years, Patni has added various services to their offerings as well as practices like engineering services, enterprise application solutions, e-business solutions, BPO services and so on. They have acquired companies like The Reference Inc, Cymbal Corporation, ZAiQ Technologies, Taratec, Logan Orviss and very recently CHCS. Patni collected various accreditations like ISO 9001:2000, CMM Level 5 and P-CMM Level 3 certifications and integrated Six Sigma techniques.

IPO

Soon after implementing McKinsey’s restructuring, a model that would be adopted later by most competitors, Naren Patni took a very important decision. He decided to invite Merrill Lynch to act as advisor for their Initial Public Offering (IPO). According to their analysis, Patni had all the trappings to attract private investments – critical mass, proven track record and stable customer base. By a combination of coincidences General Atlantic, a global leader in private equity investment, was looking for a suitable Indian software player to invest in and invested US $ 100 million in September 2002. Patni underwent an IPO on February 2004 which was oversubscribed 22 times. They are currently listed on Bombay Stock Exchange (BSE), National Stock Exchange (NSE), India and New York Stock Exchange, US.

In the same year, Patni acquired Fremont, California based Cymbal Corporation for a sum of US$78 mn. Cymbal's acquisition allowed Patni to enter $60 billion IT services market in the telecom vertical which was previously not available to Patni on their business landscape. This acquisition also allowed Patni to spread its Non-GE Business, and added a development center in Hyderabad, India.

In December 2005, Patni listed its ADRs on the New York Stock Exchange (NYSE) under the ticker PTI. The board of directors includes chairman Narendra Patni

Patni Knowledge Park

Patni Knowledge Park, Airoli, Navi Mumbai

Patni’s first foray into a ‘knowledge park’ was when Patni Knowledge Park opened its gates in September 2006 in Airoli near Mumbai, India. Its design combines the open ambience of the college with the professional efficiency of a technology / knowledge park.

In 2008, Patni launched its first Green IT-BPO knowledge centre in Noida, India. The state-of-the-art environment-friendly facility complements the organization’s green initiatives around efficient utilization and conservation of energy, water and natural resources. The centre is spread over 5 acres (20,000 m) and has a seating capacity of over 3500. Later the same year, it was awarded the prestigious LEED Platinum (Leadership in Energy and Environmental Design) rating for its Green IT-BPO Centre inaugurated earlier this year in Noida. This makes the Patni Knowledge Centre the second largest Platinum rated building in the world, and the largest Platinum rated building outside the United States.

Jeya Kumar as CEO

As a next step forward heralding a new future, on 18 December 2008, the company announced the appointment of Mr. Jeya Kumar as Chief Executive Officer. Jeya Kumar, who joined Patni in Feb 2009, was hired by Naren Patni after 2 years of global search to find the ‘right man’ for the job.

Patni’s move is significant. It is one of the rare instances in India where a family is ceding management control to a professional. For the new CEO the future of the company is in innovation. Patni was a pioneer in the off-shoring sector - They want to recreate that magic by concentrating on businesses that are difficult to replicate.

In the last year, Patni has taken various steps to move up the value chain and develop the onsite-offshore Global Delivery Model to a 3-tier model. At the very outset, the new CEO brought in his A-team of senior and experienced professionals, infusing a new way of thinking into the company.

Since then Patni has been in the news for their focus on micro-verticals, diversifying into emerging geographies and new client wins. Some of the large ones being opening of near shore centers in Mexico and Texas, along with the acquisition of CHCS Services, Inc., creating a new hub for Patni in Pensacola (Florida), winning the largest deal in the company’s history with UAM, a JV in Japan with JR Kyushu amongst others. Patni recently won the largest deal in the company’s history - a multi-million dollar, five-year agreement for providing end-to-end policy administration services for Universal American. The deal according, to media reports, was touted at 200Mn$ and is a sign of Patni making its mark in the big league.

Acquisition By iGate Corporation

iGate (www.igate.com) has announced on 10th January 2011, that it has reached a definitive agreement to buy shares of the major shareholders of Patni Computer Systems Limited. These shares comprise 63% of Patni’s total outstanding shares. This will create an enterprise with close to $1b in revenues, 25,000 in headcount.

The proposed acquisition of the shares is subject to regulatory requirements and iGate is required to make an ‘Open Offer’ to acquire additional 20% of Patni’s shares from the open market. Changes in the shareholding shall take place upon fulfillment of all the obligations under the Open Offer process.

Operations

Key industry verticals

Key services

In addition to these, Patni serves its customers through following Horizontal Business Units across various industries:

Global Locations

Asia Pacific (APAC)

North America

South America

Europe, Middle East & Africa (EMEA)

Patni Knowledge Park, Airoli, Mumbai

Patni Knowledge Park, Airoli, Navi Mumbai
Situated on a sprawling 50 acres (200,000 m) of land in the lush green Navi Mumbai area, this campus will include world-class facilities for software development, training, customer care, employee recreation, among others. The Patni Knowledge Park can easily accommodate 17,000 professionals.

Green IT-BPO centre in NSEZ, Noida

Patni Green Building


The state-of-the-art environment-friendly facility, set up with an investment of Rs. 175 crores, complements the organization's green initiatives around efficient utilization and conservation of energy, water and natural resources. Developed on Green Architecture, the centre is spread over 5 acres (20,000 m) and has a seating capacity of over 3500.

Christened, Patni Knowledge Centre, this facility is designed and constructed as per the guidelines of LEED (Leadership in Energy and Environmental Design) India Green Building Rating System for New Construction.

Acquisitions

  • April 2003: Acquired "The Reference Inc.", a company incorporated in Massachusetts, USA for a consideration of about US$ 7.5 million, through its wholly owned US subsidiary, Patni Computer Systems Inc. The Reference Inc. has provided Patni with specialised skills and domain expertise in the financial services industry segment.
  • November 2004: Acquired "Cymbal Corporation" for a sum of ₹300 crore (US$36 million) million. Cymbal's acquisition allowed Patni to enter the IT services market in the telecom vertical, gaining expertise and operations in the provision of services to clients in the telecommunications industry.
  • June 2006: Acquired "ZAiQ Technologies", a design and verification company, in Woburn, Massachusetts Through the transaction, Patni obtained ZAiQ's Application-specific integrated circuit (ASIC) design capabilities and Intellectual Property (IP), as well as expertise in Field-programmable gate array (FPGA) and System-on-a-chip (SoC) technologies.
  • July 2007 : Acquired Europe-based "Logan-Orviss International (LOI)", a leading independent specialist telecommunications consulting services company. The consideration includes an upfront cash payment on completion of the transaction as well as performance-linked incentive payments on achieving financial targets over a three year period. LOI ended a profitable year with revenues of Euro 11.8 Million in 2006.
  • July 2007 :Acquired N.J.-based "Taratec Development Corp." through Patni Computer Systems Inc. a wholly owned subsidiary of the Company, for an aggregate price of $27.2 million in cash including contingent consideration. With more than $20m in annual revenues, Taratec is a leading consulting company in the life sciences industry providing integrated business, information technology, and regulatory compliance products and services.

Awards and recognition

  • Listed among the ‘Best 20 Leaders in Financial Services (Insurance)’ in the 2010 Global Outsourcing 100, by IAOP.
  • Recognized as Genworth Financial’s ‘2009 Strategic Supplier of The Year’.
  • Received BPO Excellence Awards hosted by Stars of the Industry in the categories:
    • BPO Organization of the Year’
    • Operational Excellence and Quality’
    • Social Change Agent’
  • Listed as a ‘NeoIT 2008 Global Services 100 Company’.
  • Listed as a ‘IAOP 2008 Global Outsourcing 100 Company’.
  • Received the ‘Smart Workplace Award 2008’ instituted by Economic Times in association with Intel and Acer.
  • Patni Knowledge Center, Noida was awarded the LEED Platinum rating by the Indian Green Building Council in Oct 2008.
  • Received the ‘2008 Marketing Excellence – Diamond Award’by ITSMA.
  • Received the ‘Managing Health at Work’ and ‘Innovative Retention Strategy’ awards at the ‘World HRD Congress’ 2008-09, in the regional round under the ‘Employer Branding Category’.
  • Ranked amongst the ‘Top 10 Insurance Technology Vendors’ and 35th amongst the ‘top technology providers for financial institutions’ in the ‘FinTech 100 - 2008’ list.
  • Listed among ‘India's Top ITes & BPO Companies – 2008’,by Dun & Bradstreet.
  • Listed among Top 10 in ‘F&A BPO Competitive Landscape of Up-and-Coming Players – 2008’, by Gartner.
  • Listed in the ‘Black Book of Outsourcing – 2008’:
    • Ranked among Top 5 ‘Health Insurance BPO Providers’
    • Ranked among Top 10 ‘Total Benefits Administration Providers’
    • Ranked among Top 15 ‘Insurance Industry Vendors offering Comprehensive End-to-end BPO Services’.

References

  1. "Patni in transition, seeks to be among Top 5 - Corporate News". livemint.com. 2009-05-20. Retrieved 2010-07-16.
  2. http://www.rediff.com/business/slide-show/slide-show-1-tech-igate-seals-patni-deal-for-usd-1-22-billion/20110110.htm
  3. "About Us". Patni. 2009-03-30. Retrieved 2010-07-16.
  4. ^ http://www.patni.com/media/36387/At%20the%20centre%20of%20cultural%20shift.pdf
  5. "Financial Services". Patni. 2009-03-30. Retrieved 2010-07-16.
  6. "Life Sciences | Taratec". Patni. Retrieved 2010-07-16.
  7. "Telecom Consulting Services | Logan-Orviss International". Patni. Retrieved 2010-07-16.
  8. "Product Engineering Services | Verification and Validation". Patni. Retrieved 2010-07-16.
  9. "Patni completes Cymbal buy". The Hindu Business Line. 2004-11-05. Retrieved 2010-07-16.
  10. "Times of India Tech: Latest IT, telecom, Internet, BPO news and updates". Infotech.indiatimes.com. Retrieved 2010-07-16.
  11. "Patni software park to seat 17,000". Rediff.com. Retrieved 2010-07-16.
  12. Greener Living. "GREEN SEZ IN NOIDA | Greener Living". Greenerlivingonline.com. Retrieved 2010-07-16.
  13. "Patni Inaugurates Green IT-BPO Centre in Noida : Global Growth Investors". General Atlantic. Retrieved 2010-07-16.
  14. "Cover Page.pm6" (PDF). Retrieved 2010-07-16.
  15. Shobhana Subramanian / Mumbai 23 March 2005 (2005-03-23). "Patni`s bent on catching up". Business-standard.com. Retrieved 2010-07-16.{{cite web}}: CS1 maint: numeric names: authors list (link)
  16. "Patni acquires ZAiQ". SiliconIndia. 2006-06-06. Retrieved 2010-07-16.
  17. "Buy American.(Patni Computer Systems Ltd. acquires Zaiq Technologies)(Brief article) | HighBeam Business: Arrive Prepared". Business.highbeam.com. 2006-07-10. Retrieved 2010-07-16.
  18. "Patni acquires Telecoms Consulting Specialist" (PDF). Patni. 2007-07-02. Retrieved 2007-10-04.
  19. "Patni Acquires Life Sciences Services Company Taratec for $27 million" (PDF). Patni. 2007-07-23. Retrieved 2007-10-04.
  20. "Infosys, TCS among best global outsourcing service providers - Technology". livemint.com. 2008-02-22. Retrieved 2010-07-16.
  21. http://www.patni.com/financial-results/annual-reports.aspx

External links

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