Digitalisation

Birlasoft to adopt platform-based strategy

Synopsis

The company would invest in developing platforms for core industry process for clients that require higher digitisation, offering them a ‘servitization model’.

Agencies

IT services firm

said it would adopt a platform-based strategy to offer a faster and outcome-based digital transformation solution to clients.

The company would invest in developing platforms for core industry process for clients that require higher digitisation, offering them a ‘servitization model’.

“The first set of platforms bring together the combined power of digital technologies such as cloud, automation, IoT, edge computing, artificial intelligence, 5G & blockchain, and focus on health & safety, smart manufacturing & Industry 4.0, asset management, augmented automation, and ICU digitalisation,” Birlasoft CEO Dharmender Kapoor said.

The company has been focusing on micro verticals or specialised sub areas within the verticals it works on, and has been investing in creating assets and IP in these areas over the last few months. The company has also been increasing its focus on key clients, cross selling more services to its top customers while rationalising the smaller accounts, which were a drag on profitability.

Birlasoft had 295 active clients at the end of December 2020, as compared to 381 at the end of December 2019. Revenues for the quarter to December rose 5.7% year-on-year to Rs 880.8 crore, while profit jumped 32.6% to Rs 96.4 crore. Earnings before tax and after depreciation were at 16.4%, up 34.4% year-on-year while profit margin was up 222 basis points at 10.9%.

The company is also seeing good traction in the cloud business. “We had made some strategic investments to strengthen our cloud and digital capabilities. With these investments, we have been able to close multiple transformative deals covering cloud migration, applications modernisation, workplace digitalisation etc.,” said Kapoor. “Likewise, we are investing with other cloud ISVs as well to provide our customers with the best-fit solution.”

Kapoor said he expects ERP modernisation with cloud to be a strong growth driver in the next few quarters, with the company already working on several programs on SAP on Azure, JDE on Azure etc.

Birlasoft hired about 750 freshers in the past year and plans to add a similar number this year as well, with demand for digital transformation projects continuing to grow. While most employees are currently working remotely, the company intends to have about 20% people working from office by the end of this month, and gradually increase this to 70% by June. This would again depend on a mix of factors, including which clients are open to letting people working on their projects remotely.

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Source: https://economictimes.indiatimes.com/tech/information-tech/birlasoft-to-adopt-platform-based-strategy/articleshow/80922037.cms

Donovan Larsen

Donovan is a columnist and associate editor at the Dark News. He has written on everything from the politics to diversity issues in the workplace.

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