Analysis Of iGATE
iGATE Corporation (iGATE) is a provider of information technology (IT) and IT enabled services. Its IT services include application development; application management; verification and validation; enterprise application solutions; business intelligence and data warehousing; packaged software implementation; infrastructure management services; cloud computing services; embedded systems development; engineering design services; IT consulting; IT governance; and customized learning solutions. The company's IT-enabled services include business process outsourcing (BPO) transaction processing services and customer interaction services (CIS). IGATE offers its services to customers across insurance; healthcare and life sciences; manufacturing; retail and logistics; banking and financial services; communications; energy and utilities; product and engineering solutions; government solutions; and media and entertainment ...view middle of the document...
The leadership has become more de-centralized and there has been a significant effort in the leadership to increase their own accountability towards their clients. This is unlike their previous organizational structure where the leadership was more centralized and the company CEO Phaneesh Murthy was the face of the leadership and the company.
• This company was originally known as ‘Patni Computers’, which was then acquired by IGATE in 2012. This integration was the most important issue facing the organization in 2012. So, as a part of this integration, the company had following strategic policy:
1. Front-end sales and account management are now integrated, having been operating with a single go-to-market proposition and a consolidated sales team since mid-2011. All new deals are now being booked as iGate then allocated to either iGate or Patni for delivery, with any work being passed on to Patni through transfer pricing arrangements. The new go-to-market positioning is based on the iGate positioning on business outcomes (Leveraging the iTOPS model / outcome based pricing), using Patni's micro vertical strategy.
2. The aim is for service delivery to be integrated by end 2012.
• The Strategic policy of IGATE after this merger was as follows:
1. Scaling up its geographic capabilities, particularly in EMEA and emerging markets
2. Concentrating the sales effort on three core verticals: financial services, insurance, and health care which combined contribute over 50% of total revenues
3. Expanding the portfolio with higher value offerings in targeted micro-verticals: investing in building or acquiring software IP within each of these core verticals, also in increasing the number of personnel such as solution architects with industry domain expertise
4. Leveraging the iTOPS model / increasing outcome based pricing
5. Winning larger deals.
• After the merger of IGATE and Patni in 2012, the biggest challenge for IGATE was delisting Patni Computers because of the actions of a U.S. hedge fund which has been buying up shares and the increase in Patni share price. iGate's current debt covenant arrangement means it has up t