Diwakar Nigam, is the Chairman and Managing Director of Newgen Software Technologies Limited. He holds a bachelor’s degree in science from the University of Allahabad; Master’s degree in science (mathematics) from the Indian Institute of Technology, Delhi and a Master’s degree in technology (computer science) from the Indian Institute of Technology, Madras. Mr. Diwakar Nigam was one of the founding members of the National Association of Software and Services Company (“NASSCOM”). He was also a member of the anti-piracy task force of NASSCOM. Diwakar Nigam has been on Newgen’s Board since April 01, 1993 and has more than 35 years of experience in the IT industry.
In an interview with Shweta Papriwal, Editor, indiainfoline.com, Mr. Diwakar Nigam said, “Our focus is primarily on Banking, Insurance, Government/PSU, Healthcare, and Shared Services/BPO”.
You are a leader in Business Process Management, Enterprise Content Management, and Customer Communication Management. Could you brief us about the kind of products offered in these segments?
Newgen Software Technologies is a prominent player in the global software product industry and is a provider of Business Process Management (BPM), Enterprise Content Management (ECM) and Customer Communication Management (CCM) platforms. Our mission-critical solutions are deployed at world’s leading Banks, Governments, BPOs and IT Companies, Insurance firms and Healthcare Organisations. With footprint across 66 countries, we provide integrated solutions to 17 different industries, and our solutions are being used in some of the leading Fortune 500 companies.
We provide a unified automation platform for digital transformation of critical operations within an organization, through the management of their content, processes and outbound communications. Over the years, we have enabled our clients to achieve greater agility, accuracy & efficiency by transforming their business processes, and managing information, enhancing overall customer satisfaction and driving enterprise profitability. Our products provide an amalgamation of information, content, technology, and processes, which are the building blocks of a digital workplace.
What is your outlook on revenue growth for FY20, and do you expect to maintain the same pace as FY19? Also, which geographies and sectors according to you will see more/less traction in FY20?
FY19 has been an eventful year in various aspects, bringing in new opportunities for the organization including the expansion of product capabilities, a stronger management team and addition of new markets. During the year, we have continued with our strong growth, profitability and cash generation momentum. We are focused on driving innovation and adopting solutions in line with rapidly evolving technological trends. We see this trend continuing in FY20.
Newgen has a stronghold in the USA, APAC, EMEA and India regions. During FY19, the company added 81 new customers taking our active customer base to 540+ clients. Some of our major license deals during the year included agreements with a government authority in Oman for records management, an order from a large government defence organization in India, a bank in the Philippines, a key government organization in Singapore, a bank in Greece, and digital transformation initiatives under Smart City projects in India.
How are you positioned in the US? What is the outlook for US in FY20? Do you expect any slowdown there?
In FY19, Newgen witnessed strong growth of 46% in the US market and added 21 new logos. We are focussing on banks, credit unions, healthcare organizations and enterprises in the region. We expect to pick up strong growth momentum in the region as we expand our presence there.
How are your investments in Australian markets performing?
We opened our Australian subsidiary in April 2019 to tap into the significant opportunities in the market, and are continuing to invest in the region.
How is cloud computing/SaaS business performing? What was the revenue in this area for FY19 and what is your expected revenue in FY20?
The industry, especially in developed economies, is witnessing a shift to SaaS with an increasing number of customers deploying the BPM, ECM and CCM platforms on cloud. We are making continuous investments to develop and scale our Cloud/ SaaS business by increasing penetration and strengthening our platforms to meet all compliance and regulatory requirements.
Our customers are using software functionality on cloud-based-infrastructure provided by us, and they pay us a PUPM (per user per month) fee for the same on a monthly, quarterly or annual basis.
In FY19, Cloud/SaaS revenues witnessed a robust growth of 111% and totalled up to Rs 23.9 crores. SaaS would continue to be our fastest growing revenue component in the future years.
Your major clients belong to which sectors? How are your products making a difference in the banking and insurance industry in India and globally?
Our focus is primarily on Banking, Insurance, Government/PSU, Healthcare, and Shared Services/BPO. However, we possess multi-vertical industry expertise with solutions in 17 different segments. We expect growth in our core verticals to remain strong in the future as well. At Newgen, we always strive to innovate our products to help our customers stay ahead of the technology curve.
Our solutions offer a unified automation platform built on our products (ECM, BPM, and CCM) to cater to both consumer and commercial banking. They help banks streamline account opening, loan origination, trade finance, payments, and compliance & reporting processes. American National Bank of Texas and Credit Union of Colorado in the US, Abans Finance in Srilanka, Bank Audi and NIC Bank in MEA, etc. have selected Newgen’s banking solutions to digitally transform their workplace and the way they serve their customers.
What is your view on the overall digital transformation, especially in the banking and insurance sector?
Banking & Insurance industry needs to think about customers first, which is why they need to leverage the best in class technology. Newgen strives to enable Banking and Insuarnce enterprises to facilitate their digital journey by transforming key processes, enhancing customer experience while making transactions safe, secure and compliant.
Newgen's solutions make banking processes adaptable and scalable as per future industry requirements. These solutions automate key processes, empowering banks, FIs and credit unions with comprehensive, real-time insights.