Cognizant Technology Solutions India Ltd (CTS) has chalked out a business plan to make the transition to e-business from application management through strategic alliances.
Cognizant has aligned with various players in every niche area of business to strengthen this line of business.
Naresh Nagarajan, director, new technologies, said, "We have tied up with major technology players like IBM, Oracle and Microsoft.
Besides, Cognizant we have a partnership in place with digital business consultant Viant, Cybersource (product vendor), Berkley (e-CRM) and Neon (IPP)."
To ensure the success of this strategy, Cognizant has re-trained and cross-trained all employees from traditional legacy and client-server systems to e-business technologies, architecture and product.
The company expects revenues from e-business to increase to 35 per cent of the total revenue to be clocked in the financial year 2000-2001.
Cognizant closed the financial year 1999-2000 with a revenue of Rs 414.33 crore. The company is projecting a topline growth of 50 per cent for fiscal 2000-01. The company achieved a net income of Rs 51.75 crore in 1999-2000.
In e-business, B2B will be the primary thrust area. Nagarajan said the company will take B2C only as a strategy to help penetrate part of a large organisation, not otherwise.
CTS, however, does not rule out mergers and acquisitions from its business plan. "We will be on the lookout for companies which will add to our strength for a possible acquisition but the focus will be on striking alliances," Nagarajan said.
The acquisitions, he said, will be funded mainly through internal accruals.
On investment plans for the year, Nagarajan said $7 million has been earmarked for doubling communication bandwidth.
