Upinder Zutshi is the MD and CEO of Infinite Computer Solutions Ltd and a member of the Company’s Board of Directors. He has over 28 years of experience in initiating and establishing startups and building an efficient management team under his guidance. In his formative years, he worked extensively in the US, Europe, Middle East and India. He holds an Engineering degree from BITS, Pilani.
He has nurtured the growth of Infinite Computer Solutions with a very hands-on approach and defined the strategic direction of the Company, making Infinite Computer Solution’s revenue grow above industry average. Under his leadership, Infinite Computer Solutions grew to be in the NASSCOM Top 20 IT providers in India list with a revenue of $ 255 million in FY13. Infinite Computer Solutions has 5000+ employees worldwide and was named among the Top 5 employers in India by Dataquest - IDC, Forbes Asia 200 Best Under a Billion Companies in 2012, besides others.
Infinite Computer Solutions provides technology-based business process solutions, next-gen mobility solutions and product engineering services, specializing in the Healthcare, Banking & Finance, Telecommunications, Technology, Media & Publishing industries, for Fortune 1000 companies. Established in 1999, Infinite Computer Solutions today is a publicly listed entity headquartered in Bangalore with an expanse across three continents, a diverse employee base and over 50 premier clients, including several leading Fortune 1000 companies.
In an interaction with IIFL’s Priyanka Sharma, Upinder Zutshi, MD and CEO, Infinite Computer Solutions said, "We want to be seen as an organization that owns intellectual properties and has the ability to provide solutions to a customer keeping in mind changing business needs and technology."
Brief us about the financials of the company.
The company recorded a PAT (Profit after tax) of Rs 89.8 crore in FY14, Rs 112.9 in FY15 and Rs 121.9 crore in FY16. The PAT for H1 FY17 was Rs 61.52 crore. The revenue of the company grew consistently from Rs 1,732.7 crore in FY14 to Rs 1,737.4 crore in FY15 and Rs 2,108.3 crore in FY16. The revenue for H1 FY17 was Rs 1,092.7 crore. The earnings per share (EPS) registered a gradual increase; it was Rs 21.7 in FY14, Rs 28.1 in FY15 and Rs 30.8 in FY16. For H1 FY17, it was Rs 15.6.
You are have a range of business interests. Which segments are the most profitable for the company? How has the business landscape changed or evolved over the past few years?
We started off as a telecom focused company - wide line telecom wireless. So that’s a big segment for us. The largest, most attractive and growing segment for us now is healthcare. These are the two big verticals. A majority of the revenue comes from these two verticals.
There has been a dramatic change in the telecom vertical. Today, any telecom company cannot stop at merely providing voice communications, and so there’s data, content and wireless. There has been a huge shift in the nature of telecom companies as well. For us, there has been a huge opportunity in the market because of the dramatic business changes. Companies needed us as they had to change the underlining IT system for products and platforms. Companies had to make investments in new products, new switches, and new routers. So, that's why we have been growing in that segment.
Most of your business is in the US. What are you bringing to India in the near future?
What we are bringing to India or everywhere else are the next generation platforms or the RCS, which is a rich communication next generation SMS product, a personal messaging cloud, where you send messages using different devices stored on the cloud. For example, if you are an iPhone user today, apple service allows you to send an SMS from your US phone and see it on your Indian phone as well. We have another product which is called EMS - a secure messaging system. Western Union is a big client of ours on that. It is a two-way secure system. It is a product called Net Sphere, something similar to WhatsApp. The product is for a secure communication which is used for Corporates, Enterprises.
Are there any immediate expansion plans or plans to acquire new entities?
We are not looking at acquiring companies as such, but we are looking at adopting a similar deal when we acquired products for Motorola. We are in conversation with some companies to see that such kind of deals can be worked out which can give us a headstart into this space.
What are the challenges of technological innovations in the healthcare industry that you have experienced? How can these be addressed?
In the healthcare sector, we provide basic IT services and are into building platforms for products, specifically for the healthcare industry in the US for payees. Our products are useful to the insurance companies as well as hospitals and patients.
In this sector too, we have a similar story to telecom. We started off in the basic services and now, we are gradually moving towards IT and product-based solutions. On the challenges of this segment, one needs to realise that when you come from a services company, the mindset is very different and a complete change is required. Building software or building a product is very different from building a project. So, you have to re-train or re-hire people accordingly. A different set of marketing and sales skills are required in selling products and platforms in the marketplace.
Tell us about your client additions in the past few years.
Nearly 90% of our business comes from the top end clients. The biggest clients that we work with are companies such as IBM, Xerox Corporation, Nokia, Siemens, Alcatel Lucent and Western Union.
In all, we have more than 250 clients and we have added about 45 contracts last year.
Has the Indian government’s move towards pushing the digital economy helped you?
In India, we are implementing a large power management plan for the Uttarakhand government. In addition to this, we are doing work for the Uttar Pradesh State Electricity Board where we are creating customer portal payment gateway. It is building management systems to collect payments, automated meter reading. So, the government’s move to push for digitalisation is an exciting space.
How many people do you employ?
Overall, we employ some 5,000 people, out of which 3,000 are in India and 1,700 are in the US.
What is your vision for the company for the next five years?
We want to be seen as an organization that owns intellectual properties and has the ability to provide solutions to a customer keeping in mind changing business needs and technology. A major part of our revenue comes from product platforms and intellectual property rather than the headcount. So, there’s scope there. We also have a financial goal for the next five years but unfortunately being a public company I'm not comfortable giving that number.