Comments
Technology firm iGATE Patni is looking at expanding into new verticals through its ‘outcome-based business model' to explore new areas of product engineering.
The company is eyeing industry segments such as media and entertainment, plant design and plant automation to enter newer areas of business operations apart from implementing outsourced projects, according to Mr Satish Joshi, Executive Vice-President and Head of PES, iGATE Patni.
New model
The new model is different from the conventional one in that the IT service provider will also be involved in deducing solutions for the client's problem rather than execution of the project alone.
In the conventional model, the product that has to be built is decided and the project for the IT service provider involves estimation of costs and execution of the project while the new model will involve innovating the solutions to meet the objectives.
The company will be specifically targeting EMEA (Europe, Middle East and Africa), APAC and Japan, Mr Joshi said. India will also be an important market for the PES business, especially in the industrial automation, transportation, energy and medical & healthcare sectors, he added.
Hiring plan
In this context, the company plans to hire 1,500 people in the next two years. It currently has over 3,200 people in the PES team. “We will also be investing in R&D infrastructure and training facilities as part of the expansion of the PES business,” Mr Joshi said.
Adopting this business model, the company, on Tuesday, entered into a partnership with mining company Rio Tinto to provide engineering research, industrial automation and control, software and embedded design and development services.
Under the PES business, iGATE Patni provides product development and product life cycle management – right from research and evaluation, electronic and engineering design, up to sustenance and maintenance.
The business caters to sectors such as auto, industrial automation and control, consumer electronics, mobiles and semiconductor.
PES contributes to about 15 per cent of iGATE Patni's total business and the company expects this to go up to 25 per cent in the next two years.
“Product companies are now focusing extensively on targeting emerging markets and are re-engineering products to address value engineering requirements,” Mr Joshi said.
Comments
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.