Friday, 7 November 2008

Patni scores new contract with Bupa

(By Anthony Miller) Patni, the smallest of the major Indian SIs, has won a new 3-year application management deal with UK-based health insurer, Bupa, already a Patni client for two years. Patni has a rather low profile in the UK despite signing a landmark $200m deal with Carphone Warehouse just over a year ago.

I recently met up with Patni’s European head, Brian Stones. Europe generated about 17% of Patni’s $720m last twelve months’ revenues, we think most of that from the UK, say around £65-70m. It’s clear that Patni wants to redress the balance of its business in Europe, aiming to bring the region to over one-third of group revenues in the next few years, with a higher proportion coming from the Continent.

Besides its core application development and management services, Patni has a relatively strong showing in product engineering services (about 11% of revenues), designing embedded software for a wide range of manufacturing companies, as well as undertaking core development work for independent software vendors.

It would be fair to say that Patni has suffered more than larger peers these past several quarters, with flagging revenue growth and high attrition. Last year there was speculation that one of the founding Patni brothers was to sell his shares, which caused some uncertainty inside and outside the company (the Patni family and associates currently own 47% of the stock). It seems to be ‘all quiet on the eastern front’ for now as the company buckles down to defending and growing its business. More high profile clients like Bupa and CPW would certainly help!

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