The Hindu : Business : Polaris scouting for partners

Online edition of India's National Newspaper
Sunday, Feb 17, 2008
ePaper | Mobile/PDA Version

Business

Business

Polaris scouting for partners

K. T. Jagannathan

Arun Jain

CHENNAI: Polaris Software Lab has decided to adopt ‘alliance model’ to take Intellect, a comprehensive banking suite that it had launched in the middle of 2005, into emerging markets. Polaris is keen to take Intellect to emerging markets such as China, Russia, East Europe, South America and Africa.

Arun Jain, Chairman and Managing Director, said Polaris would prefer to enter these markets by becoming a significant partner in a consortium led by a larger system integrator. The company, he said, already initiated the process of dialogue with a few well-known lead system integrators.

In an interview with this correspondent, Mr. Jain said Intellect was contributing 20 per cent of the company’s revenue. At an annual run rate of $50 million within three years of its launch, Intellect, he said, “is doing well”. Intellect has now a client base of over 40.

Mr. Jain said Polaris had re-jigged its strategy for Intellect by focusing on Tier-I banks. It had already landed contracts from nine Tier-I banks for Intellect.

Another nine Tier-I banks were set to go live with Intellect soon, he added. With Polaris breaking into Tier-I banks, he was confident that Intellect could win more clients through “reference business model”.

Mr. Jain said the company would have invested close to Rs. 200 crore to design, develop and perfect Intellect. “We have been writing down the investment in profit and loss account,” he said. With Intellect bringing in more clients, he reckoned that the revenue from product business would rise to 30 per cent two years hence from the current 20 per cent.

An estimate suggested that banks across the globe would be spending $80-100 billion in modernisation over the next few years. This was a big opportunity for Intellect, he added.

Mr. Jain said 35 per cent revenue for Polaris came from business from the U.S., 33 per cent from Europe and 32 per cent from the rest. However, 68 per cent of revenue was dollar-denominated one. In this context, he said Polaris would shift to local currency billing in six months.

The company was keen to emerge as a significant player in the money vertical by providing operational, technology and the like expertise, he said.

Printer friendly page
Send this article to Friends by E-Mail

Business