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Home > THE DQCI SILVER CLUB 2004
 
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Godrej Case Study

DATACRAFT INDIA: Coming Full Circle
 
Starting as a network integrator, Datacraft got into services in 2002-03 and last fiscal, it metamorphosed into an end-to-end solution provider. Nagendra Venkaswamy also moved in as President for the Indian sub-continent.
 

 
Monday, September 20, 2004

 

Nagendra Venkaswamy, MD

SERVICES: Telecom solutions, enterprise networking, business support systems, IP convergence, networking storage, managed network services, e-conferencing solutions, security, outsourced services, network audit, maintenance, e-business consulting and cabling solutions
EMPLOYEES: 320
BRANCHES: 78
ADDRESS: Trade Center, 2nd Floor, Kamala Mills Compound, Lower Parel, Mumbai 400013
TEL: 022-24981212

STRENGTHS
l Ability to execute projects in 120 countries for local customers
l Strict SLA policies leveraging its NOC in Bangalore
WEAKNESS
l Relatively small sales force of 28 people, which lead to missing some opportunities
l Need to work more on application integration for broad-based enterprise offerings

Datacraft India' decision to get into providing end-to-end solutions in 2003-04 held it in good stead as it increased its agency revenue to Rs 350 crore in 2003-04, up from Rs 214 crore the previous fiscal.

This was a healthy growth of a 22%, with network integration remaining the mainstay of its business. Datacraft also has its own brand of proprietary services like 'Primer', which chipped in Rs 97 crore to overall revenues.

Nagendra Venkaswamy donned the mantle of Datacraft's Indian business after his predecessor, Dilip Kumar moved to Singapore as regional director for Malaysia, Thailand, Indonesia and Philippines.

Solutions and services together contribute 30% to the company's revenues, while the rest comes from the integration business. Services contributes 60% to the entire solution business and is expected to grow at 30% this fiscal, according to the company. Service revenues grew by 19.5% to touch Rs 96 crore last fiscal, while products grew by 19%.

Datacraft has a well-documented service level agreement policies, which is adhered to by roping in its network operated center (NOC) at Bangalore.

BPO was a major customer vertical pitching in 40% to its overall revenues besides telecom. The company also forayed into the banking space last fiscal, which is already emerging as a key buyer vertical.

A key project that Datacraft implemented last fiscal was networking of 4,500 offices of State Bank of India (SBI) across 393 towns. 1,200 SBI offices went online in the first phase of nine months and the others locations following in seven months. It also worked with Bharat Sanchar Nigam Ltd (BSNL) to provide 5,000 leased lines for these SBI branches.

Datacraft also worked very closely with Cisco, for which it is a gold partner, for setting up Internet Protocol Contact Centers (IPCC). Almost 77% of Cisco's IPCC implementation was done this SI.

The company also recruited 200 employees to its payroll, most of whom were taken into its post-sales support division. It also added vendors like Nokia, RSA and Checkpoint to its portfolio and focused more on security, categorizing its offerings for protection, detection and prevention. Security is expected to grow at 50% this year.

The company also put its toes into the storage water, and this business is witnessing a 300% growth for it.

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