CHAIRMAN'S STATEMENT - 2005-06
Persistent is on the growth path.
In the last 16 years of our existence, we have been single mindedly focusing on Product Development and today we have succeeded in gaining a sound reputation in the outsourced product development segment as being customer-oriented and technologically competent. Our focus is rapidly turning out to be the positive differentiator for us.
The software scenario is witnessing an emergence of varied trends, changing the very nature of the industry. New technologies, new business models, new markets and new geographies are emerging, gradually questioning the 'cost arbitrage' that was largely instrumental in tilting the balance towards Indian IT vendors. The Indian market no more enjoys the monopoly of being a provider of 'Skilled Resources' at low cost. It is time for the Indian vendors to do some rethinking, seeking new ways to offset cost increases. Moving operations to tier two and tier three Indian cities, verticalizing, exploring new models, add value to customers' business and other ways of conserving costs, are some of the options being contemplated in the industry.
On the other hand, offshoring to India has matured to a large extent. Economic challenges have spurred many software vendors to move not only support functions but also core product development overseas. Though most offshorers remain focused on cost savings as the primary reason for offshoring, the motivations to send work offshore have become more varied, with factors like workforce flexibility, scaling up the operations and faster Time-To-market becoming more common reasons.
In the given backdrop, 2005-06 was a pivotal year for Persistent. Though we have been maintaining the tempo as far as our rate of growth is concerned, yet it was time for us to revisit our strategies, do some introspection, make some important changes and build momentum because we realize that the only way to survive this wave of industry evolution is to innovate and differentiate.
Keeping an eye on the future, we took significant steps towards consolidating ourselves by stepping up investments, enhancing the breadth/depth of our service offerings and expanding our reach. We continued to grow through people, projects, presence and performance.
The stage is set. And 2007 is the year to take the leap.
Best Regards,
Anand Deshpande
Founder, Chairman and Managing Director
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