(By Anthony Miller – Tuesday, 3rd March 2009 5:20pm). While the Indian ‘pure-plays’ are very transparent with their financial reporting (OK, Satyam excepted!) and especially with their operational metrics, it’s rare to see the innards (or even the ‘outtards’) of the Indian operations of US or European players. But fortunately for us (and probably to their great chagrin), HP/EDS’ Indian delivery unit, Mphasis, remains listed on the Indian national stock exchange, so their quarterly reports are available in all their glory for everyone to see.Which is why I can tell you with great joy in my heart that in the quarter ended 31st Jan. ’09, Mphasis (aka ‘EDS India’) generated some $200m of revenues at a very respectable 21.5% operating margin. Most of this (67%) was from EDS’ US customers but 22% came from Europe. Like most of the Indian pure-plays, Mphasis is heavily skewed to AD&M (application development and management) services, which represented about 65% of total revenues. Infrastructure management services (including helpdesk) contributed 17% and were also the most profitable, at 39% gross margin.
Mphasis now has nearly 30,000 employees of which 94% are offshore (most of the onsite effort comes from local EDS staff of course). Application services billing rates average $22 per hour offshore and $71 p.h. onshore, much in line with larger peers.
I will be writing regularly about Mphasis and the other Indian players, as well as the offshore delivery capabilities of the traditional players, in our OffshoreViews research reports, available only to TechMarketView subscription clients. Offshore views will incorporate my regular quarterly comparison of the top Indian SIs’ key operational metrics, including: revenue composition by region, vertical industry and service line; margins; staff attrition and utilisation; and customer revenue concentration. What more could you possibly want in order to make a success of your offshore delivery unit?
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