According to Business Line reports, SSI has entered into a joint venture agreement with Technology Venture Holdings, a Hong Kong based Information Technology group.
SSI, formerly known as Software Solutions Integrated is India’s third largest software education company and is based in Chennai. It specialises in Oracle based and e-commerce education and has 350 training centres in India.
Technology Venture Holdings is a company with Rs 1.375 billion investments,
with a market capitalisation of nearly Rs. 10 billions.
The new venture is to be christened as Top Train and SSI will acquire a 9 % stake in the company through it’s wholly owned subsidiary Clientsoft Inc US. Top Train will be engaged in providing software education in the areas of oracle and e-commerce.
China and Hong Kong are largely untapped areas so far as software education is concerned. As the boom in software continues globally, more and more students are enrolling for software education.
As such the venture is bound to do well.
The only hitch seems to be translating the educational content from English to Mandarin, to suit requirements of Chinese students.
The joint venture is in line with SSI’s plans to establish itself as a global player in software education.
China and Hong Kong which are traditionally hardware based countries are eager to transit into software, where profit margins are higher and salaries better.
The present move should add to the bottomline of the company, as profit margins are expected to be better than those prevailing in Indian markets that are overcrowded.
As the opening of such centres in the Far East and elsewhere in the world should boost the top line and bottom line growth of the company, Analysts have rated the stock has a “Buy”. However a note of caution must be sounded. Technology stocks globally have been undergoing a major re-rating exercise. Several renowned experts have warned of declines of upto 100 % in valuations of technology stocks.
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