23 ASHTECH INFOTECH LTD:From Services To Software

Ashtech’s LG distribution business grew by 120 per cent and its integration business grew by about 50 percent to touch Rs 47.6 crore during 1999-00. However it got out of the distribution business altogether and sold the business to Compuage Infocom Ltd.

The integration business got a major boost and Ashtech introduced Compaq’s high-end servers and Sun Microsystems’ RISC-based servers for its SI projects getting Rs 5 crore of business. It also introduced Cisco’s routing products. Ashtech also developed two web sites —
www.exchangenext.com and www.customerpowernu.com garnering Rs 40 lakh during the first quarter. Support and service contributed Rs 2.5 crore to the total revenue which was Rs 50 crore. Contribution from software and services were Rs 2 crore and Rs 3 crore, respectively.

Currently, 80 per cent of Ashtech’s revenues come from SI and this is expected to grow. To achieve a B2B site is being set up. A call center will also be to support this venture. The aim is to web enable the company’s operations and services.

The biggest challenge for the company in 1999-00 was employee retention. Over 25 people left though 45 more were recruited for the software business. Ashtech plans to pick up large projects to boost employee morale and provide opportunities to work internationally.

Ashtech plans to tie-up with software MNCs to become their implementation partners and get into e-commerce security. It will also launch its own software products for service centers and e-CRM by the end of this year.

Ashtech expects convergence, broadband and VoIP to bring much more support and networking opportunities. An authorized service provider for HP, LG, Acer, and Compaq, Ashtech has the largest service center in Mumbai. It also has exclusive service centers for Acer notebooks.

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