iGate completes Patni acquisition

iGate completes Patni acquisition

Phaneesh is now the new CEO

Briefing reporters, iGate CEO & Managing Director Phaneesh Murthy disclosed that Patni’s present CEO Jeya Kumar has quit and so will the Chief Financial Officer Surjeet Singh on May 31, 2011.

A nine-member executive committee comprising Sean Narayanan, Surjit Sircar, Srinivas Kandula, David Kruzner and Robert Massie from iGate and Sunil Chitale, Satish Joshi, Derek Kemp and Vijay Khare from Patni has been constituted, reducing the number from 22 to 9.

While both iGate and Patni will continue to exist as separate listed entities operating on independent basis, the focus, going forward would, however, be to executing together as combined company, Murthy said.

The goal would be on energising efficiences on shared services side, Murthy said, pointing out the aim would be to attain leadership position in banking and financial services and insurance and healthcare services verticals initially. Thereafter, iGatePatni would seek to covet business in verticals such as media and entertainment, manufacturing, retail and logistics distribution, communication and energy utilities.

Likewise, in purusit of their “go to market” strategy to expanding presence, Murthy said, they would do so with common identity — ‘iGatePatni’ and under new logo which stands for combined value of both the organisations. “This common identity,” he said, “will be represented by leadership across both the organisation by the newly constituted executive committee,”  who will shephered the organisation for future growth.

Murthy, however, said that over a long term horizon Patni name will be dropped.  With the integration of the two companies, the staff count stands at 26,000 with client base at 360, of which two were $100 million clients, two $50 million clients and $36 million clients. For the combined entity top five accounts contributie to 38 per cent and top ten accounts contribute to 49 per cent of revenues. It will also see 10 delivery centres across India, Mexico and Australia and over 50 offices in 20 countries.

Stating the vision is to change the rules to delivery high impact outcomes, Murthy said, the senior exits have “all largely motivated by us.” On attrition he said, the company has taken care of the compensation for the staff through hikes of 2 to 4 per cent outside of India and between 9 to 10 per cent in India. It has made 4,000 campus offers in 2011so far.

The cash pile of $370 million which the company was still sitting on, he said, would be be channelised towards skills and marketing, and moving the company from mainly services to solutions and IP creation entity.