Polaris Software expects 8% topline growth
By Our Convergence Bureau | 07 Sep 2002
Chennai: Polaris Software Lab, the city-based software company, is hopeful of closing the first half with 8-per cent topline growth. Indications are strong towards the expected growth in revenues, says Polaris Software Lab CMD Arun Jain.
The company had closed first quarter with 4 per cent lower sales (Rs 68.45 crore), as compared to Rs 71.33 crore posted for the previous years corresponding period.
Refusing to comment on the revised swap ratio in the takeover of OrbiTech Solutions, a Citigroup company, Jain says the merger is taking more time as the legal documents are to be drafted taking into account the laws of three countries: India, the UK and the US. The company cannot afford another Data Inc fiasco.
Jain says Polaris Software has started the integration process of OrbiTech, while minor merger issues are to be ironed out. But he refused to elaborate the hitches in the OrbiTech deal. In July 2002, Jain had said that the shareholder contracts will be signed by the first week of August 2002.
While Jain proudly claims that there was 0-per cent attrition at the top management level despite no salary hike, reports are abound that OrbiTech employees are approaching placement agencies for jobs in the wake of an imminent merger. The highly-secretive human integration process is steered by Polaris strategic advisor Dr Ashok Kowar and Grow Talent, an HR consultancy firm.
Though Jain says his companys focus will be on selling products as maintenance contracts will decline in the future, BankWare, Polaris banking software, is facing tough competition at the market place domestic as well as global from Flexcube of i-flex Solutions. To its advantage, i-flex Solutions has a strategic tie-up with IBM India and bidding for banking projects are made jointly.
The duo has bagged a couple of IT projects in the domestic banking industry. Responding to that, Jain says: BankWare is a two-year-old product, whereas Flexcube is 10 years old. It will take sometime for us to establish our product.
In the meantime, the companys wholly-owned business process outsourcing outfit, Optimus, will be setting up a 300-seat call centre, investing $2 million, in Chennai. Jain is confident that Optimus will target Polaris Softwares existing banking clients for business.
