Precision Group : Moving Against The Tide

Year 2008 was a landmark year for Precision Group in two aspects. It was the
first year for Precision after its 51 percent stake was acquired by Info-Drive
Software, an IT and BPO services organization with a global footprint. The
acquisition was of strategic importance to them as it enabled the 12-year-old
company to expand further in the domestic market and gain a global footprint in
the services market as well. The acquisition has also brought two more board of
directors to the Precision Group.

Secondly, buoyed by this fiscal injection, Precision posted a turnover of Rs
203 crore for FY 2007-08, registering a growth of 15 percent over the previous
year's turnover of Rs 177 crore. This wasn't too good a news as it was a drop in
growth rate compared to 54 percent growth the company had attained in 2006-07.
Precision largely concentrated on the corporate and SMB segments, where the IT
spending didn't happen much during the last fiscal.

Following this, the company cut down around 250 jobs in the last fiscal and
its headcount dropped from 750 in FY 2006-07 to 495 in FY 2007-08. The company
claimed that the focus was more on the bottomline and hence the growth rate
didn't replicate the true success.

Meanwhile, the company continued its hold on the SMB segment, which
contributed around 40 percent to the overall revenue during last fiscal. It
continued to strengthen its focus in the SMB segment by roping in 10 new
clients.

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Profile
Directors: V Murali, Mathew Chacko, TG Ramesh Start-up year: 1996 Employees: 495 Collaborations: HP, IBM, Lenovo, HCL, Microsoft, Novell, Toshiba Address: #22, First Floor, Habibullah Road, T Nagar, Chennai - 600017 Tel: 044-42199500 Website: www.precisionit.co.in SILVER CLUB RANK (2006-07): 3

The tie-up with VMware during the last fiscal was of strategic importance to
Precision, as it clocked more than100 percent growth in the storage segment. The
HP Business Solutions Center in Precision's premises along with a partnership
with the latter has been a value addition to Precisions solution division, where
customers can experience the latest HP products and solutions.

The company eyes to strengthen itself in Delhi and Pune where it's just a
month old. It has plans to enter Kolkata and Ahmedabad in next 12 to 18 months.