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Godrej Case Study

FRONTIER BUSINESS SYSTEMS: At the frontier of growth
 
The Bangalore-based solution provider raked in a decent 55% of its revenue from solutions providing, but only 12% from services. To counter that, it had some tie-ups with Novell, Citrix, NetApp and GE Medical Systems.
 

 
Thursday, September 22, 2005

 


DIRECTOR: Ravi Verdes

BRANDS: IBM, Sun, Cisco, Avaya, Emerson, Novell, Citrix, NetApp, GE Medical Systems 
EMPLOYEES: 250
BRANCHES: 6
ADDRESS: 18/10, 3rd Floor, Cunningham Road, Bangalore 560052 
TEL: 080-22253142/3/4 
SILVER CLUB RANK (2003-04): 9

STRENGTHS
l Ability to retain customers and strong principal alliances 
l Exciting work environment, which fosters creativity and thus strong workforce with motivated employees
CHALLLENGES
l Present only in south India
l Direct business model with some of its principals

An impressive Rs 140 crore as agency revenue for the fiscal 2004-05 was not at all bad for Bangalore-based systems integrator (SI)-Frontier Business Systems. One among the strong players in the solution providing business in South India, Frontier in the last fiscal, indulged in new tie-ups with the likes of Novell, Citrix, NetApp and GE Medical Systems as exclusive service providers.

Business for Frontier appeared to be good at all its sales centers located in Karnataka, Tamil Nadu and Andhra Pradesh as well as their satellite offices in Mangalore, Coimbatore, Madurai and support centers based in Mumbai and Delhi.

For a company, 55% of whose revenues come from providing amicable solutions to its customers, 12% of the revenue comes exclusively from services. Probably this could be an area where the company could improve in the future and hence add to its growing revenue in the future. Conventionally a strong player in computing, networking, software, storage, power conditioning and services, last fiscal saw a good sales for Frontier in computing products from IBM (Intel range of products and Enterprise products), which clocked 45% of total sales. In the networking arena, it was Cisco and Systimax, which contributed a modest 20% of the total sales.

A company, which boasts of total manpower strength of 365 across all locations, Frontier Business Systems added approximately 80 new faces into its fold. With a firm belief in the need for regular training, the company managed to train an excess of 125 people (both in India and abroad). Of this lot that were trained, around 60 people got various certifications in their areas of expertise. These certifications were on various operating systems like AIx, Solaris, Citrix, Cisco and on storage technologies/ implementations besides software products of Tivoli, Lotus Notes and Microsoft products.

All in all, a whopping amount of over Rs 100 lakhs was invested for purposes of training the company's manpower. Frontier, in the last fiscal undertook many enterprise-based installations in the areas of storage, Unix products as well as Citrix technologies. Of the many milestones that it crossed last year were the large orders that were bagged from BHEL, Hyderabad (Rs 10 crore order). The company also executed several large networking deals.

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