IT Industry Review

2011-12 was a mixed year with increased opportunities in new age technologies like Mobility and cloud and stagnant demand for traditional services with global economy sending mixed signals. IT services market is expected to grow between 4-5% over the next couple of years.

Organizations are looking aggressively at alternative IT infrastructure like Cloud based solutions, on-demand services and SaaS in order to not only reduce hardware infrastructure costs but also to have required scalability on demand which are opening up newer avenues of service provisioning.

Next couple of years are expected to see a major surge in the use of mobile computing on a variety of devices and through an innovative new range of applications.

Sagarsoft Business Strategy

Sagarsoft Business strategy is to increase focus on Mobility and Open Source Technologies while continuing to leverage existing clients for additional business. Sagarsoft is also focusing on creating innovative business and pricing models, specializing in providing niche end-to-end service offerings and continue to sustain, pursue, acquire, develop and nurture strategic long term relationships.

Business overview

The company has made steady progress last year in acquiring new clients in Mobile and open source technologies space and in consolidating business from existing clients, across all service areas including new service lines. The business from the new clients acquired last year is expected to increase and add significant value to the top-line of the company.

The company has continued its focus on operational excellence and increasing efficiency levels in addition to cautious addition to the head count based on optimal requirements to service projects that the company is getting. In view of the emerging opportunities across new service areas that the company is building, the company is continuing to build teams in various technologies in anticipation of future projects as well as for fulfillment of existing requirements that are in the sales pipe line.

Human Resource and Employees - HR policy

Employees are Sagarsoft's best assets and it has taken every measure to have an excellent work environment. With increased opportunities for its employees due to the excellent skills that they have developed on the job, it is essential to have a proactive employee engagement programs, which SSIL is always focusing on. The company continues to add small numbers of employees marked by caution.

Opportunities

With steady progress that the company has made in mobile computing and cloud based solutions practice areas, it is concentrating on consolidating its offerings in this space with focus on Enterprise segments and Mobile BI areas which are the showing lot of momentum with increased demand from new customers. As with earlier years the company is also getting projects which are of long term in nature and with lot of business viability though with reduced margins.

Risks and concerns

The immediate concern to the company's growth in the medium term is the brssure on the billing rates, increased attrition levels due to improved opportunities for our employees in the niche segments that we are focusing on. The company's strategy of getting into niche segments with better margins and increased focus on employee engagement programs might mitigate this risk to a large extent.

Outlook

The company expects to diversify into newer areas of Mobile BI solutions space and provide a combrhensive suite of offerings encompassing all the customer requirements. The focus is going to on providing niche solutions which provides better margins and showcase innovations to attract quality customers.

Internal Control systems and their adequacy

The company's internal control systems are adequate to meet its brsent operations. However these are reviewed periodically to ensure that they continue to be adequate to meet the increasing operations.