Nucleus Software towards pure product company

Chennai: Financial services sector software product and services company Nucleus Software Exports is in the process of migrating to a pure play product company.

In order to beef up its product suite the company is investing around Rs20 crore while a similar sum is being invested in building up the infrastructure.

“In four to five years we will be a pure product company. Presently the company gets nearly 30 per cent of its revenues from services,” said Vishnu R Dusad, managing director.

Though the company mainly caters to the banking sector offering standalone products, Dusad said there is no pressure to have a core banking solution in the portfolio.

“There is a huge market for software products other than core banking solution and we would target that space,” he remarked.

Nucleus Software has software products under the brand FinnOne that takes care of customer acquisition, loan management, deposits, collections, general ledger and cash management suite of products apart from other products.

The company is now targeting the South Asian markets like Pakistan, Sri Lanka and others.

Meanwhile the 1,600 people Nucleus Software is increasing its headcount by 200. In Chennai the company has moved into a bigger premise and plans to increase the head count by 100.

Referring to the appreciating rupee vis-a-vis depreciating dollar on the company Dusad said it has had an impact on the company already as nearly 70 per cent of its contracts are dollar denominated. “We are now planning to charge our European customers in Euro and the Japanese clients in Yen. Customers are open to that,” he said.

According to him the company earns 40 per cent of its revenue from Japan, 20 per cent each from South East Asia and Middle East, 10-15 per cent from Europe and US and the balance from Indian clients.

In the short term the company is resorting to hedging activity to mitigate the dollar depreciation impact.

Dusad is of the view that the manpower cost would come down for the industry as a whole when the availability of people with software knowledge goes up.

He said Nucleus Software is working with some educational institutions to increase the software talent pool.