Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.

Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
NIIT unveils millenium plan - Views on News from Equitymaster
  • E-MAIL
  • A  A  A
  • Aug 23, 1999

    NIIT unveils millenium plan

    India's largest IT training company has firmed up plans to enter the new millennium with its best foot forward. It has selected four areas for added focus viz. business application, electronic delivery system, customer relationship management and legacy system engineering.

    NIIT commenced operations as an IT training company to become the ninth largest computer training institute in the world (in terms of revenues). It is India's leading IT trainer with 45% market share, training approximately 100,000 students every year and has 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.

    NIIT now harbours ambitions of making its presence felt in the world's largest IT market - USA.

    In the coming years, Internet, e-commerce and net-centric solutions shall form the cornerstone of NIIT's business strategy. In software, NIIT plans to achieve the Software Engineering Institute (SEI) Level 5 certification and move towards value-based pricing. One reason that why the company could be pushing for a SEI Level accreditation is the fact that other Indian software majors like Wipro and Satyam Computers have already achieved it.

    In what is seen as a major realignment of strategy, NIIT now plans to evolve into a product and solutions company, from just an IT service provider. As part of its solutions strategy, NIIT has plans to deliver full-fledged solutions for any project in less than 90 days.

    The company has already commenced work in developing products in the customer relationship management segment has drawn up plans to tailor products for different vertical market segments like software, engineering and banking in the future.

    Unlike their western counterparts like Microsoft (MS Office) and IBM (Lotus), Indian software companies have yet to make a mark in product development, which is at the higher end of the value chain. Infosys' foray (BANCS 2000, Webse'tu, In 2000) in product development has not proved very successful, in fact BANCS2000 - its flagship product has found it a struggle for survival over the past couple of years.

    Product development puts added strain on the company's finances. Apart from the R&D costs, there is a fair degree of marketing expenditure involved. The product development process could take a while, and even after that it there could be some more time lag between the product hitting the market and actually making it big. Until the product attains a decent level of popularity, the company has to keep on incurring marketing expenditure. Despite all this, at the end of the day, the product could sink, taking with it millions of rupees and man-hours.

    Market View:

    Analysts view NIIT's foray into product development with a certain degree of apprehension. Given NIIT's lack of experience and the track record of other Indian companies, they have put the stock on 'HOLD'.



    Equitymaster requests your view! Post a comment on "NIIT unveils millenium plan". Click here!


    More Views on News

    Tech Mahindra: Our Revised View (Quarterly Results Update - Detailed)

    Aug 2, 2017

    A better than expected turnaround in performance results in a change in view.

    Wipro: A Decent Start to the Year (Quarterly Results Update - Detailed)

    Jul 27, 2017

    Digital services drive growth for Wipro in 1QFY18.

    Infosys: A Decent Start to FY18 (Quarterly Results Update - Detailed)

    Jul 14, 2017

    Infosys starts FY18 on an encouraging note with a stable performance.

    TCS: Currency Volatility Plays Spoilsport (Quarterly Results Update - Detailed)

    Jul 14, 2017

    TCS starts FY18 decently despite an adverse currency impact.

    HCL Tech: Ends FY17 on Expected Lines (Quarterly Results Update - Detailed)

    Jun 29, 2017

    Volvo partnership caps a good year for HCL Technologies.

    More Views on News

    Most Popular

    Demonetisation Barely Made Any Difference to Tax Collections(Vivek Kaul's Diary)

    Aug 7, 2017

    The data tells us quite a different story from the one the government is trying to project.

    Proxy Plays: A Smart Way to Bet on 'Off Limits' Companies(The 5 Minute Wrapup)

    Aug 4, 2017

    The small-cap space is full of small players that are clear proxies to great growth stories and Indian megatrends.

    Should You Invest In Bharat-22 ETF? Know Here...(Outside View)

    Aug 8, 2017

    Bharat-22 is one of the most diverse ETFs offered so far by the Government. Know here if you should invest...

    Signs of Life in the India VIX(Daily Profit Hunter)

    Aug 12, 2017

    The India VIX is up 36% in the last week. Fear has gone up but is still low by historical standards.

    7 Financial Gifts For Your Sister This Raksha Bandhan(Outside View)

    Aug 7, 2017

    Raksha Bandhan signifies the brother-sister bond. Here are 7 thoughtful financial gifts for sisters...

    Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
    Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

    LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

    SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

    Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
    Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407

    Become A Smarter Investor In
    Just 5 Minutes

    Multibagger Stocks Guide 2017
    Get our special report, Multibagger Stocks Guide (2017 Edition) Now!
    We will never sell or rent your email id.
    Please read our Terms


    Aug 16, 2017 (Close)


    • Track your investment in NIIT LTD with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
    • Add To MyStocks


    Compare Company With Charts