Pentasoft Technologies Ltd merged Management Discussions

PENTASOFT TECHNOLOGIES LIMITED ANNUAL REPORT 2007-2008 MANAGEMENT DISCUSSION AND ANALYSIS Management Discussion and Analysis Report for the year under review as stipulated under Clause 49 of the Listing Agreement with the Stock Exchanges in India, is presented a separate section forming part of the Annual Report. Industry Overview Indias information technology and IT-enabled services industry will be more than double in size by 2012, led by a fast-expanding domestic market, according to Market Research Report of IDC, India. The industrys revenues, including those from export markets, will reach Rs. 5.3 trillion in 2012, from Rs.2.46 trillion last year, said the report by market research from IDC India, Two trillion rupees of that will be from domestic market, which is growing at an average annual rate of 18.4 percent, outpacing overall industry growth of 16.5 percent, the report reveals. Indias expanding economy, growing annually by nearly nine percent, is spurring domestic IT spending as companies upgrade technologies to stay competitive. Last year, Indias overall IT and IT-enabled services industry logged 22.4 percent growth in revenue to Rs.2.46 trillion, of which the domestic market contributed Rs. 900 billion, according to IDC India, In 2008, the market researcher expects the overall industry to grow 20 percent, with the Indian market expanding 22.4 percent, maintaining its growth rate last year. The revenue from US geography is 60%, from Europe constituted 30% and Rest of the world including Asia Pacific and others is 10%. During the year, the Company has started its outbound BPO Service in tele- marketing of on-line education, mortgages and Resorts Holiday packages. The Company has extended its strength in Multimedia by imparting classroom training. The Company has tied up with certain colleges for providing training in Languages of Japanese, French and German. The Company has extended its Franchisee operations in different part of South India. The Company has executed some of Annual Maintenance of software through its subsidiary Esoft com (Mauritius) Limited.