Precision Group: Banking on services business

Precision Techserve was the place of action last year as the company
entered into IMS business. It incorporated a resourcing and infrastructure
training initiative to address the market. It is now setting up a global
competency center for remote infrastructure management services

Precision Group was able to post a good growth of 48 percent in the last
fiscal, unlike the previous years where it used to grow at nearly 100 percent.
But, it is understood that when the base gets larger, the growth rate slows
down. However, Precision did brisk business across the various divisions and
services contributed significantly to the company's growth over the last year.
Overall, Precision Group notched a turnover of Rs 155 crore in business.

The flagship company - Precision Infomatic, continued to steer the business
to a healthy growth path with a turnover of Rs 127 crore, while its technical
services arm Precision Techserve brought in nearly Rs 20 crore to the total
turnover.

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CEO: V Murali
Highlights MS initiatives took-off well Growth came from all products/business lines Preparing for the next level of growth

Precision largely depends on HP for its growth and performance in the market.
HP accounts for nearly 70 percent of the total turnover in its flagship
division. Last year, the company became an HP authorized support delivery
partner for enterprise products such as Itanium and storage servers. It also
achieved Novell and Microsoft gold partner certificates. Microsoft, IBM and HCL
are three other major brands for Precision, which brought roughly six to seven
percent revenue. Recently, it tied up Novell (Suse Linux).

Techserve was the place of action last year as services revenue grew
considerably in business. The company incorporated a resourcing and
infrastructure training initiative to address the IMS (Infrastructure Management
Services) business in a big way. In the process, the company bagged some major
projects from ICICI (to network and maintain its various branches), NDDB and
Power Grid Corporation of India, to mention a few.

Techserve is working on setting up a global competency center for remote
infrastructure management services to address the global market. To meet the
growing business demands, Precision went on a hiring spree, adding up to 625
people on the fleet. It is likely to be increased to 750 by this year-end.

The company recently announced a slew of initiatives and expansion programs,
to move on to the next level of growth. It would get into ERP implementation
services, IT education services, consultation and integration, among others.
Now, the biggest challenge for the company is to expand its operations across
the country, which is not happening as planned. Though, it opened an office in
Mumbai recently, it needs to quickly get into north and east to become a
national player and leverage on that status.