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ACCEL ICIM FRONTLINE: Increasing the service pie
 
Accel ICIM Frontline Limited (formerly Accel ICIM) registered only a modest growth of 4% in the last fiscal in its overall revenues. But it managed to post a healthy 17% growth in its agency revenues in 04-05.
 

 
Thursday, September 22, 2005

 


CEO: NR Panicker

BRANDS: IBM, Intel, Sun, HP, Hitachi Data Systems, Mastermind, Microsoft, Oracle, JD Edwards, iPlanet, CommWorks, Citrix, Veritas, Nortel Networks, Cisco Systems, Lucent Technologies, Watchguard, 3Com, 
EMPLOYEES: 1,783
BRANCHES: 46
ADDRESS: Accel House, No. 75, Nelson Manickam Road, Aminjikarai 
Chennai 600029
TEL: 044-23741856 
SILVER CLUB RANK (2003-04): 6

STRENGTHS
l Right mix of products and solutions offering, with expertise in enterprise
l Strong service network
CHALLLENGES
l Still conventional in approach
l Large workforce shooting up overheads, affecting profits

Accel ICIM Frontline, which was earlier known as Accel ICIM, had a sluggish overall growth in 2004-05 to touch Rs 163 crore, after stagnating at Rs 156 crore for a couple of years. It attributed this slow overall growth rate of 4% to the shift in business focus from hardware selling to services.

The company however slowed down on hardware reselling and consciously limited its focus on PSUs and government because of delayed payment cycles, which had impact on the total turnover.

The increase in service revenue was mainly a result of restructuring which the company undertook about a year back. It has helped the company to establish itself as an enterprise solution provider, from just a system integrator, specializing in IT infrastructure services, management services, applications, consulting, warranty and support services.

The company's four strategic business units such as enterprise software solution, IT infrastructure solution, integrated technology services and BPO services have started to register growth, which will be the driving engines in coming years.

In the ESS, Accel ICIM is working on to acquire a company in the US and bid for off-shore projects in the local market there. Last year, it also made a turnaround with its Middle-East operations-Accel Infotech, a Dubai-based subsidiary company, which registered profits for the first-time in the last four years.

Similarly, the company is expecting more off-shore projects through its relationship with Singapore-based Frontline Technologies Corporation, which holds 40% stake in Accel ICIM Frontline.

Being a national player with offices across the country, the company has a workforce of nearly 1,800 people, out of which 70% is from technical support. Accel ICIM Frontline went in for CMMi Level 5 certification in the last year.

The other major highlights of the last year include Sun Premier Systems Provider Award and Cisco Premier Certification. It also strengthened its relationships with business partners like Sun Microsystems, Intel, IBM, Microsoft and PeopleSoft, while forging new alliances with Xerox, Brother International, Hyundai and Dbtel for warranty outsourcing services.

Accel ICIM Frontline has also tied up with SkyBridge Global Inc for ERP solutions. The company had been a preferred vendor for LIC, BHEL, HFCL, Metlife, IBM Global Services, Cholamandalam, Bharti, Allahabad Bank and Siemens, among others.

On the services side, it won orders from IBM, KSB Pumps, CTS, Bajaj Allianz and GE Countrywide. Last year, Accel ICIM Frontline had made 60 percent of its total revenue from SMB segment, while government contributed 28 percent. The large enterprise accounted only for 12% and 2% came from SOHO.

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