Syntel Executive Summary

The primary target for the last couple of years for Syntel is to cross the $1 billion revenue mark. Syntel did not gain an exponential revenue growth that it had hoped for because of different factors like the volatility of the market, slow growth of the economy, etc. Therefore, a shift is required from our current business strategy of being only an IT consulting company. Syntel will be greatly helped by my recommendation of creating a new Product Development Vertical. The new vertical can generate the boost required for the exponential growth of the revenue. This growth will in turn help Syntel reach its target of $1 billion in revenue.

Current Growth Pattern

As you can see in Figure 1, Syntel’s increase in revenue has been linear. To change

Syntel can use the existing global employee pool of 23,000 resources. The average employee of Syntel has nearly 6+ years of technical domain knowledge, in technologies like Mainframe, Java, database management, etc. Additionally, there is a huge pool of employees with 10+ years of functional domain knowledge, in domains like Banking and Finance, Healthcare Insurance, etc. The employee pool can be used by

1. moving the existing employees into the Product Development Vertical and harvesting their specialized knowledge

2. using the skill set of these employees to design and develop new software products and applications.

Therefore, with little or no additional expense we can create this new Product Development Vertical.

Groundwork

Syntel’s current business operations can be used to lay the groundwork of the new Product Development Vertical. Figure 2, show how we can design and develop new products at Syntel.

Figure 2. Product Development Process

We can use our existing client base to get a very good idea of product scope. And also use the existing client base to market and sale the new

Med Mantra by Tata Consultancy Services This product is used by multiple healthcare providers, to assist in Hospital Management. “With this product, large and medium-sized hospitals can streamline patient care, hospital administration, ancillary services, and clinical support activities.” (TCS Technology Products, 2015)

The success of these products in the market shows that product development by IT Consultancy companies is a tried and tested method of expanding the portfolio. Benefits

Having a Product Development Vertical will be of immense benefit to Syntel. Following are some of the benefits

• Revenue will be generated from the sale or licensing of the products to different customers.

• Revenue will be generated from the after-sale support of the products. After-sale support will include maintenance as well as enhancement to the product based on the customer needs.

• Use the products as a sales pitch to new potential customers. Not necessarily to sell a specific product, but to showcase our expertise in the development of a good software