ACCEL ICIM FRONTLINE: Increasing the service pie

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.