>GOLDYNE TECHNOSERVE LIMITED (MERRILL LYNCH)

The company
Glodyne Technoserve is a fast growing company in the high potential IT infrastructure management space. The revenue of company has grown form Rs685mn in FY05 to Rs5010mn in FY09. The company has guided consolidated revenue of Rs6680-6880mn in FY10, a yoy growth of 33-37%. The company derives about 80% of its revenue from technology infrastructure management services (IMS), and rest comes from application development & other services. The company operates in India (75% of rev.) & USA (25% of rev.) geographies.

IMS – big untapped potential
As per various studies, while in general offshoring services have grown rapidly in past one decade, the services pertaining to remote management and maintenance of core IT infrastructure has been rather slow to gain popularity. As of now, only about 7 percent of the addressable market is being estimated to have been captured. Studies, e.g., by Mckinsey in 2008, have suggested that shifts in customer attitudes and economics could trigger rapid growth for these services.

E-governance and education– potential growth driver
The company traditionally has strong relations with government departments and public sector undertakings. With E-Shakti project, a five year Rs2840mn project under NREGS won by the company on BOOT basis from Bihar State government in FY09, the company has entered a high potential e-governance market. The company estimates it to be major growth driver in next few years. Through acquisition of Broadllyne Technologies – a managed application service
provider in the education sector, the company has also entered the fast growing education sector.

Product offerings
Glodyne’s main product offerings are Technology Infrastructure Management Services (Technology IMS) and Application Software Services (ASS). The company has a hybrid service delivery model including both onsite and remote delivery of services.

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