NIIT, promoted by the HCL
(Shiv Nadar) group, is involved in IT training, software solutions
and multimedia products. It is India's second largest IT services
company and fourth largest software exporter.
NIIT commenced operations as
an IT training company to become the ninth largest computer training
institute in the world (by revenue), and India's leading IT trainer
with 45% market share, training approx. 100,000 students
every year, with an alumni base of more than 600,000 students. In all it
has over 750 training centres, of which more than 30 are
overseas (17 countries) concentrated in Asia and Africa. The company's
management has reduced risk and capital investment in its training centres
by employing franchisees (more than 500) as a preferred way of expansion.
Its other business is providing
software solutions, which it commenced in the mid-1980s as a software trading
business. Over the years, this business has evolved into systems integration
and applications software development.
In multimedia products,NIIT
develops and sells own-brand, computer based educational products, and
develops products for third-party vendors.
NIIT is currently rated
SEI Level 3 for software solutions. The rating determines productivity
and maturity of work undertaken. The company has set a target to reach
SEI Level 5 by year 2000.
Over the years, it has developed
relationships with some of the leading software companies across the world.
For instance, it has sole distribution rights for Oracle, the leading database
management system, and has tie-ups with 13 other companies including Microsoft
(only non-US course vendor), Computer Associates (for preparing its courseware)
3Com (networking solutions), Sybase (distribution of Powerbuilder products
in India), Digital Tools and Mentor Graphics Corporation, USA for reselling
and distribution of products.
In FY98,NIIT became the first
Indian IT company to cross the Rs 1 bn mark. Software (42% of revenues)
is now the single largest business, and has overtaken the contribution
from IT training (40%). In future, contribution from software is expected
to increase further. In any case, the software business grew much faster
(52% over FY97) than the IT training business (40%). Educational Multimedia
(269 titles) contributing 18% of revenues, posted 77% growth.
48% of revenues.
Y2K accounts for
only 5% of NIIT's revenues. Therefore, it has lower reliance
on this lucrative yet temporary source, when compared to companies like
Infosys and Satyam for whom Y2K accounts for more than 20% of revenues.
As yet,NIIT has had little
success in moving up the value-chain, and is to prove its expertise
in providing value-added services.
NIIT's strategy for growth includes:
Enhancing its presence in the
education business by adding 100 centres every year, in India
Offering courses to training
audiences beyond those that are IT-centric
Tapping the enormous potential
of the Internet.
The company plans to acquire
a software company in the US, and go in for an American Depository
Receipt (ADR) issue.
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