Mumbai, July 12, 2006 - Patni Computer Systems (BSE: PATNI COMPUT, NSE:
PATNI, NYSE: PTI) today announced that a recent survey of top decision-makers in
Europe has found 'Customer Retention' to be one of the most important drivers for
companies to outsource. Taking views from CIOs, CTOs and business leaders of
Financial Services and Insurance (FSI) companies based in Europe, the survey
outlines outsourcing strategies being adopted by companies in these verticals. The
survey, done by Patni in conjunction with IDC at its FSI conference in London also
revealed that apart from India, Western Europe was a preferred outsourcing
destination for companies in Europe.
According to the IDC-Patni FSI survey, European FSI companies believe that their
outsourcing strategy needs to be in tandem with the IT priorities of the organization.
64% of those polled mentioned 'Customer Satisfaction and Retention' as their top IT
priority followed by 'Business Continuity' (74%) and 'Security' (55%). 73% of the
respondents suggested that their investments in IT had increased over the last 12
months.
European FSI companies directly correlate outsourcing efficiencies to customer
satisfaction and hence view outsourcing from a broader perspective. 64% of the
respondents mentioned that a vendor's flexibility in adapting to the changing client
requirements was one of the most important criteria in vendor selection. 45% of the
respondents believed that outsourcing would help them free internal resources to
focus on their core functions.
The survey uncovered some other trends in the European market on how
outsourcing strategies are integrated into business plans:
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Financial Services organizations in Europe are slowly but surely catching onto
the outsourcing wave. 27% of the respondents suggested that they would look
to increase the amount of work that they outsource over the next 12 months.
63% of the respondents suggested that they would maintain the amount of
work outsourced in the following year. |
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Industry expertise, vendor reputation, flexibility in partnership and resource
skills were amongst the key criteria, apart from cost, that European FSI
organizations look at while selecting a partner. |
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A significant percentage of respondents (63%) were keen to adopt new
technologies and believed that these could be an integral part of their IT
strategy. |
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India was the country of choice for a significant portion of the respondents
(45%) followed by Western Europe (36%). China, other Asian countries and
Eastern Europe did not find much favour as outsourcing destinations amongst
European companies. |
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Commenting on the survey, Peter Farley, MD, EMEA, Financial Insights said,
"The survey results are a clear indication that banks and insurers recognize the need
to focus on their core competencies if they are to deliver customer satisfaction. The
fact that more financial services firms are outsourcing non-core activities (or
considering such a move) bears testimony to the fact that many of these businesses
now understand that delivering better products and services to existing customers is
more important than winning new ones."
Mr. Sukumar Namjoshi, Managing Director, Patni UK said, "This survey gives us
a directional insight of the European market. It clearly underlines the fact that
technology requirements across the FSI segment is growing at a steady rate. Cost is
no longer the key outsourcing criteria for the European FSI industry. Flexibility in
partnership, domain expertise and reputation of the vendor are the drivers of the
industry."
About Financial Insights - IDC
Financial Insights is the specialist end-user research and consulting subsidiary of IDC
that focuses on challenges facing financial organizations and how technology can
provide solutions. It has a team of over 30 analysts based in the main global
financial centers. Parent company IDC is one of the foremost technology research
and consulting groups in the world with over 850 analysts located in all the main
global business locations.
About Patni
Patni Computer Systems Limited (BSE: PATNI COMPUT, NSE: PATNI, NYSE: PTI) is a global IT Services provider servicing Global 2000 clients. Patni caters to its clients through its industry-focused practices, including insurance, manufacturing, financial services, telecommunications, and its technology-focused practices.
With employee strength of over 12,000 and multiple offshore development facilities across eight cities; Patni has 23 international offices across the Americas, Europe and Asia-Pacific. Patni has registered revenues of US$ 450 million for the year 2005.
Patni's service offerings include application development, application maintenance and support, packaged software implementation, infrastructure management services, product engineering services, business process outsourcing and quality assurance services.
Committed to quality, Patni adds value to its client's businesses through well-established and structured methodologies, tools and techniques. Patni is an ISO 9001: 2000 certified and SEI-CMMi Level 5 organization, assessed enterprise wide at P-CMM Level 3. In keeping with its focus on continuous process improvements, Patni adopts Six Sigma practices as an integral part of its quality and process frameworks.
For more information on Patni, visit www.patni.com.
Safe Harbor:
Certain statements in this release concerning our future growth prospects are forward-looking statements, which involve a number of risks, and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, intense competition in IT services including those factors which may affect our cost advantage, wage increases in India, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed-price, fixed-time frame contracts, client concentration, restrictions on immigration, our ability to manage our international operations, reduced demand for technology in our key focus areas, disruptions in telecommunication networks, liability for damages on our service contracts, the success of the companies in which Patni has made strategic investments, withdrawal of governmental fiscal incentives, political instability, legal restrictions on raising capital or acquiring companies outside India, and unauthorized use of our intellectual property and general economic conditions affecting our industry. The company does not undertake to update any forward-looking statement that may be made from time to time by or on behalf of the Company.
For more information please contact:
Text 100 Public Relations (India)
Vivek Padiyar
VivekP@text100.co.in
Tel: 022-56595519/20 |
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Ayan Dutta
AyanD@text100.co.in
Tel: 022-56595519/20 |
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