Syntel
 | |
| Public | |
| Traded as | NASDAQ: SYNT |
| Industry | IT services, IT consulting |
| Founded | Troy, Michigan 1980 |
| Founder | Bharat Desai, Neerja Sethi |
| Headquarters | Troy, Michigan, USA |
Area served | Worldwide |
Key people |
Bharat Desai, Chairman Prashant Ranade, Executive Vice Chairman Nitin Rakesh, CEO & President Rakesh Khanna, COO |
| Services | IT, business consulting and outsourcing services |
| Revenue |
 $1.08 billion (FY 2016)[1] |
|
$268.3 million (FY 2016)[1] | |
|
$241.4 million (FY 2016)[1] | |
| Total assets |
$1.22 billion (FY 2016)[1] |
| Total equity |
$968.6 million (FY 2016)[1] |
Number of employees | 24,496 (April 1, 2016)[2] |
| Website |
www |
Syntel, Inc. is a U.S.-based multinational provider of integrated technology and business services. Headquartered in Troy, Michigan, Syntel services its clients through 17 global development centers in India and the United States. Syntel is a certified minority-owned business (MBE).
On April 21, 2014 Prashant Ranade, former CEO and President of Syntel was elevated to Executive Vice Chairman of the Syntel Board,[3] while Nitin Rakesh took over as the CEO and President.[4] Founder and Ex-CEO Bharat Desai will continue to serve as Chairman of the Board, and is the majority shareholder.[5]
History
Syntel was founded in Troy, Michigan in 1980 with an initial investment of $2,000 by Bharat Desai, and his wife, Neerja Sethi. Originally named Systems International, the company began by providing software staffing services to local corporations like General Motors (US),[6] and some major Government Revenue projects, earning $30,000 in its first year.[7]
- 1980: Syntel is founded as a staff augmentation firm, an offering later known as TeamSourcing.
- 1988: Syntel begins providing full lifecycle maintenance, development, and migration services, which later evolve into the IntelliSourcing service offering.
- 1992: Syntel opens its first two Global Development Centers in Mumbai and Chennai, India – one of the first U.S.- based IT service companies to employ a Global Delivery model.[7]
- 1994: Syntel’s posts revenue of $50 million while employee count increases to 1,000.
- 1994: Syntel opens a third Global Development Center in Cary, North Carolina, which serves as the U.S. hub for Syntel's global voice and data network.
- 1997: Syntel becomes a publicly traded company in August, as the stock begins trading on NASDAQ as SYNT; 3.45 million shares were floated in its IPO;[8] Syntel opens offices in London and Singapore; revenues pass the $100 million mark.
- 1998: Syntel's Mumbai and Chennai Global Development Centers earn ISO 9001 certification.
- 2000: Syntel begins exploring BPO service offerings by migrating its own HR, Finance and Help desk operations from the U.S. to India.
- 2001: Syntel’s Global Development Centers are assessed at SEI CMM Level 5, making Syntel one of only 15 U.S. companies to achieve this standard; Syntel opens healthcare-focused Global Development Center in Nashville, TN and a regional office in Munich, Germany.
- 2002: Syntel opens Global Development Centers in Phoenix, AZ and Pune, India.[9]
- 2003: Syntel’s Global Development Centers in Mumbai and Chennai achieve ISO 9001:2000 certification.
- 2004: Syntel opens a dedicated BPO center in Mumbai; Syntel’s Global Development Centers achieve BS 7799 security certification.
- 2005: Syntel's Global Development Centers achieve SEI CMMi Level 5; Syntel opens the first phase of its Pune Technology Campus. Syntel acquires a 27-acre (110,000 m2) parcel of land in Chennai for a second technology campus.[10]
- 2008: Syntel breaks ground on its Chennai technology campus and records more than $400 million in revenues.
- 2009: Syntel promotes Keshav Murugesh to the post of President and CEO. Bharat Desai remains the Chairman of the Board.[11]
- 2010: Prashant Ranade is appointed Syntel CEO;[12] Syntel opens the first phase of its Chennai technology campus.
- 2011: Rakesh Khanna becomes Chief Operating Officer[13] of Syntel; Syntel closes FY 2011 with $642.4 million in revenue.[14]
- 2013: Syntel breaks ground on a new Global Development Center in Tirunelveli, India,[15] and opens facilities in Manila, Philippines[16] and Maryland, USA.
- 2014: Nitin Rakesh takes over as CEO and President from Prashant Ranade. Prashant Ranade promoted to the Executive Vice Chairman of the Syntel Board[4]
- 2015: Syntel announced the deployment of SyntBots®, an autonomic computing platform[17]
Syntel is a provider of digital transformation, integrated technology and business solutions to companies in the banking and financial services, insurance, healthcare and life sciences, retail, logistics and telecom, and manufacturing sectors.[18] It follows a global delivery model for its IT and KPO services.
The organization has introduced support services for every business vertical to leverage dedicated industry practices. These horizontal services include Application Services, Cloud services, Testing, Architecture, IT Infrastructure Management, Business Intelligence, and KPO services.
Business Model
Global Delivery
Syntel's growth during the early years prompted their leadership to explore additional service offerings to augment the core IT staffing business.[7] In 1989, Syntel began providing development and maintenance services to its clients.
In 1992, with new development centers in India, Syntel began software outsourcing services with an onsite-offshore model, which connected software developers in India to project managers at client locations via an international telecommunications network.[7]
Operations
Geographies (Global Offices)
Syntel's global headquarters is located in Troy, Michigan, in suburban Detroit, but has 30 worldwide facilities located in the United States, United Kingdom, Germany, Philippines, Australia, and Canada.[19] The company's offshore software development centers are located in Mumbai, Chennai, Gurgaon and Pune, India, as well as Manila, Philippines. The Company's U.S.-based development centers are located in Phoenix, Arizona, Nashville, Tennessee, Memphis, Tennessee and suburban Baltimore, Maryland.
Syntel's first global development centers were established in Mumbai in 1992, and the company still maintains a strong presence in that city, as well as in Chennai. According to public filings, the company has over 80% of its billable workforce in India.[20]
In 2005, Syntel inaugurated a large technology campus in Pune, with an initial capacity of 3,000 employees, which has since been expanded.[21] In May, 2010, Syntel also opened the first phase of a 27-acre (110,000 m2) technology campus in Chennai, India.
On April 24, 2013, Syntel broke ground on a new Global Development Campus (GDC) in Tirunelveli, Tamil Nadu[22] as an expansion of its campus-based infrastructure strategy. When complete, the campus will feature green design features such as an on-premises wind and solar farm for generating renewable energy.[23] The company has also been allotted 25 acres of land in ELCOT IT Park, Madurai.[24]
Business Units
Syntel provides clients with IT and Knowledge Process Outsourcing (KPO) services, servicing clients in the Banking and Financial Services, Healthcare and Life Sciences, Insurance, Manufacturing, and Retail, Logistics and Telecom industries.[25] Syntel’s teams support these industries in areas of Business Intelligence/Data Warehousing, ERP, Enterprise Integration Services, Mobility, and Enterprise Architecture Solutions.
Leadership and Board of Directors
Bharat Desai
Bharat Desai is the chairman of Syntel. He co-founded Syntel in 1980 along with his wife, Neerja Sethi,[26] and served as the company’s Chief Executive Officer from April 1980 to February 2009. He also handled presidential duties from April 1980 to December 21, 2006. Desai is an Electrical Engineer from Indian Institute of Technology (IIT), Mumbai,[27] and received an MBA from the Ross School of Business at the University of Michigan,[5] specializing in Finance.
He was named "Entrepreneur of the Year"[27] by USA Today, NASDAQ and Crain's Detroit Business in 1996.[28] He also received the IIT Alumnus of the Year award[29] from the Indian Institute of Technology in 2004.[5]
Prashant Ranade
Prashant Ranade, Vice Chairman of the Board since April 21, 2014,[30] is Syntel's former Chief Executive Officer and President, a position to which he was appointed in February, 2010.[12][31] He has been a Director of Syntel since June 15, 2007. Prashant previously served as the Chief Executive Officer and President of Dematic GmbH & Co. KG (formerly known as Siemens Group Logistics and Assembly Systems, NA) from May 2003 to November 1, 2006.[32]
Prashant is an alumnus of the Indian Institute of Technology, Mumbai and the University of Cincinnati. He completed his MBA at Xavier University in 1982.[33]
Nitin Rakesh
Nitin Rakesh, Syntel's former President – Americas, Business Development and Nearshoring Center at Syntel, Inc. took over as the CEO and President on April 21, 2014. Previously, he has handled many senior leadership roles at companies like Motilal Oswal Asset Management Company Ltd., State Street Syntel Services, TCG Group.[34]
Rakesh Khanna
Rakesh Khanna has been Syntel’s Chief Operating Officer since January 2012.[35][36] He previously served as President of Syntel’s Banking and Financial Services Business Unit from 2005 until 2012. Khanna joined Syntel in 2005 from i-flex solutions after spending 10 years in various roles.[37] Khanna holds a B.E. in Mechanical Engineering from Victoria Jubilee Technical Institute (VJTI) and an MBA from Narsee Monjee Institute of Management Studies (NMIMS), Mumbai.[37][38]
Finances
According to Syntel's Third Quarter 2015 financial results, the company posted revenue of $253.6 million, up 11% from year-ago quarter and 6% sequentially.[39] Syntel's Q3 2015 EPS stands at $0.92 per diluted share, up 26% from year-ago quarter, and 28% sequentially.[39]
Corporate Social Responsibility
S'Prayas is Syntel's Corporate Social Responsibility initiative, launched in 2006.[40] The volunteer-driven program is aimed at educating underprivileged children. S’Prayas leverages Information Technology to provide underprivileged children with access to quality education. The volunteers work with local communities around Syntel campuses in Mumbai, Pune and Chennai to empower underprivileged children through education.[41] Some of their programs include computer literacy, remedial education, mentoring, real life skills and spoken English classes.
The initiative was awarded the 2008-2009 Award of Excellence for Corporate Social Responsibility by the Indian Educational Society-Mumbai. S'Prayas was also named as one of the finalists at the annual NASSCOM Social Innovation Honors (NSIH) 2013, in the Corporate – CSR Category.[42]
Awards and Recognitions
- Crain's Detroit Business "The Fastest Growing Companies" (#30 in 2013)[43]
- CRN's 2013 Solution Provider 500 (#44 in 2013)[44]
- Gartner’s Top 10 India-Based IT Services Providers (#10 in 2013)[45]
- International Association of Outsourcing Professionals "The Global Outsourcing 100" (#31 in 2013,[46][47] #38 in 2012,[48] #48 in 2011[49])
- Ranked among the top performing 344 public companies by Harvard Business Review
- NASSCOM’s Top 10 players in IT Services (#9 in 2012)[50]
- NASSCOM’s #15 BPO Export Company in India (2012)[50]
- NASSCOM’s #16 IT - BPO Employer in India (2012, 2011)[50]
- Forbes "200 Best Small Companies in America" (2012,[51] 2011,[52] 2009,[53] 2008,[54] 2004,[55] 2003, 2002,[56] 2001,[57] 1998[58])
- Global Services Media and Neo Advisory "Global Services 100" Sub Lists (2012,[59] 2011,[60] 2010,[61] 2009,[62] 2008,[63] 2007[64])
- Global HR Excellence Awards, 2010 - Organization with Innovative HR Practices, Best Overall Recruiting and Staffing Organization of the Year, Most Innovative Recruiting and Staffing Program/Initiative – Syntel’s Life Enrichment Program, Award for Excellence in HR through Technology, (2010)[65][66]
- "Best Innovative Lean Project" award, 10th Annual Asian Six Sigma and Lean Process Improvement Summit (2009)[67][68]
- Golden Peacock Innovation Award-Special Commendation for creating innovations through lean approaches (2009)[67][68]
- The Black Book of Outsourcing's World's 50 Best Managed BPO Vendors (2008,[69] 2007, 2006, 2005)
- Crain's Detroit Business "Largest Computer Service Companies" (2007, 2003, 2002[70])
- IndUS Business Journal, "Largest Indus Outsourcing Firms" (2005,[71] 2004[72])
- Business Week's "Hot Growth Companies" (1999,[73] 1998[74][75])
LayOff
Syntel laid off 5000 employees in 2015 after poor quaterly results.
References
- 1 2 3 4 5 "Syntel 2014 Financial Results, Date Feb 19, 2015" (PDF). files.shareholder.com. Retrieved Feb 19, 2015.
- ↑ "Syntel Q3 2015" (PDF). syntelinc.com. http://files.shareholder.com. Retrieved 21 October 2015. External link in
|publisher=(help) - ↑ http://investor.syntelinc.com/releasedetail.cfm?ReleaseID=823143
- 1 2 http://www.business-standard.com/article/companies/syntel-appoints-nitin-rakesh-as-ceo-and-president-114020700752_1.html
- 1 2 3 "Bharat Desai & family". Forbes.
- ↑ http://www.iammadeinindia.com/?p=1181
- 1 2 3 4 http://www.nritoday.net/profiles/32-bharat-desai-among-forbes-eight-self-made-stars
- ↑ http://www.nasdaq.com/markets/ipos/company/syntel-inc-6928-8897
- ↑ http://www.efytimes.com/e1/fullnews.asp?edid=5769
- ↑ "Syntel to expand in Chennai; acquires 27.52 acre land -Software-News-Indiatimes". The Times Of India. May 2, 2005.
- ↑ "Syntel Promotes Keshav Murugesh to Chief Executive Officer". Bloomberg.
- 1 2 http://www.ciol.com/ciol/news/73549/syntel-names-prashant-ranade-ceo
- ↑ http://ca.finance.yahoo.com/news/Syntel-Promotes-Rakesh-Khanna-pz-2198854541.html
- ↑ http://investor.syntelinc.com/releasedetail.cfm?ReleaseID=649209
- ↑ http://www.dqindia.com/dataquest/news/187561/syntel-gdc-tirunelveli
- ↑ http://www.marketwatch.com/story/syntel-expands-global-delivery-capacity-with-development-center-in-the-philippines-2013-12-09?reflink=MW_news_stmp
- ↑ http://investor.syntelinc.com/releasedetail.cfm?ReleaseID=897269
- ↑ Presentation, Investor. "Q2 2013 Overview" (PDF). p. 8.
- ↑ http://www.syntelinc.com/Internal.aspx?id=177
- ↑ http://www.gurufocus.com/news/195227/syntel-inc-reports-operating-results-10q
- ↑ "IT major's entry evokes much hope". The Hindu.
- ↑ http://www.thehindubusinessline.com/industry-and-economy/info-tech/syntel-to-set-up-delivery-centre-in-tn/article4588690.ece
- ↑ "Syntel plans to global development campus in Tirunelveli - The Times of India". The Times Of India. April 24, 2013.
- ↑ http://www.elcot.in/it_parks_madurai1.php
- ↑ Overview, Investors. "Vertical Alignment" (PDF). http://files.shareholder.com/. p. 4. External link in
|publisher=(help) - ↑ http://www.siliconindia.com/magazine_articles/Bharat_Desai__Neerja_Sethi-BHU810987734.html
- 1 2 Alumni, IIT Bombay. "Bharat Desai IIT-B Alumni Profile" (PDF).
- ↑ http://www.bus.umich.edu/NewsRoom/ArticleDisplay.asp?news_id=6606
- ↑ http://www.iitb.ac.in/archive/foundationday.html
- ↑ http://www.rttnews.com/2263054/syntel-appoints--as-executive-vice-chairman-nitin-rakesh-as-ceo.aspx
- ↑ http://www.globenewswire.com/news-release/2010/02/02/413488/183299/en/Syntel-Appoints-Prashant-Ranade-as-Chief-Executive-Officer-and-President.html
- ↑ http://markets.ft.com/research/Markets/Tearsheets/Directors-and-dealings?s=SYNT:NSQ
- ↑ http://www.alumni.iitb.ac.in/daa_award-2007.aspx
- ↑ "MoneyControl".
- ↑ http://www.bobsguide.com/guide/news/2012/Jan/4/syntel-promotes-rakesh-khanna-to-chief-operating-officer.html
- ↑ http://www.syntelinc.com/Company.aspx?id=99
- 1 2 http://alumni.nmims.edu/articles/article/4
- ↑ http://nmat.org.in/management/index.php?id=alumni
- 1 2 Syntel Q3'15 Results
- ↑ http://www.syntelinc.com/Company.aspx?id=62
- ↑ http://www.ciol.com/ciol/news/61886/syntel-expands-csr-initiatives
- ↑ http://blog.syntelinc.com/sprayas-appreciated-at-nasscom-social-innovation-honours/
- ↑ http://www.crainsdetroit.com/article/20130714/NEWS/130719915/30-syntel-inc
- ↑ http://www.crn.com/sp-500/2013/index.htm
- ↑ http://www.gartner.com/newsroom/id/2496815
- ↑ http://globenewswire.com/news-release/2013/06/18/554862/10036736/en/Syntel-Named-in-IAOP-s-2013-Global-Outsourcing-100.html
- ↑ http://www.iaop.org/Content/19/165/3612
- ↑ http://www.iaop.org/content/19/165/3437
- ↑ http://www.iaop.org/content/23/152/2040/
- 1 2 3 http://www.nasscom.in/industry-ranking
- ↑ "Our annual list of America's Best Small Companies ranks the top 100 publicly held companies with annual revenue under billion, based on a blend of financial metrics". Forbes.
- ↑ http://yourbusinessworkshop.blogspot.in/2011/01/syntel-named-to-forbes-best-small.html
- ↑ "#27 Syntel". Forbes. October 14, 2009.
- ↑ "Syntel Named a Top Small Company by Forbes". Bloomberg.
- ↑ http://www.businesswire.com/news/home/20041022005076/en/Syntel-Ranked-Small-Companies-Time
- ↑ http://www.thefreelibrary.com/Forbes+Names+Syntel+to+'The+200+Best+Small+Companies+in+America'+List...-a0132324902
- ↑ http://www.thefreelibrary.com/Forbes+Names+Syntel+to+'The+200+Best+Small+Companies+in+America'+List...-a079613042
- ↑ http://www.siliconinvestor.com/readreplies.aspx?msgid=6232710
- ↑ http://www.globalservicesmedia.com/global-services/analysis/2772/the-2012-global-services-100-defining-leadership-global-itand-business-process-outsourcing
- ↑ http://microsites.globalservicesmedia.com/gs100/show.article.asp?5E5F5F115A5956115E
- ↑ http://globenewswire.com/news-release/2010/08/06/427142/198753/en/Syntel-Named-a-Top-100-Performer-in-Global-Outsourcing.html
- ↑ http://www.businesswire.com/news/home/20090304005171/en/Syntel-Named-2009-Global-Services-100-List
- ↑ http://finance.paidcontent.org/paidcontent/news/read?GUID=4644762&Symbol=SYNT
- ↑ http://www.thefreelibrary.com/Syntel+Named+to+2007+Global+Services+100+List.-a0158842688
- ↑ http://www.worldhrdcongress.com/Global%20HR%20Award%202010.html
- ↑ http://globenewswire.com/news-release/2010/04/20/418511/188967/en/Syntel-s-HR-Practices-Take-Home-Awards.html
- 1 2 "Innovation and Lean Business Awards".
- 1 2 "2009 Recognition".
- ↑ "Syntel Ranked One of the Top 50 Global Outsourcers". Bloomberg.
- ↑ http://connection.ebscohost.com/c/articles/11912038/largest-computer-companies-ranked-by-2002-revenue
- ↑ http://www.indusbusinessjournal.com/Media/PublicationsArticle/1054v0w6.pdf
- ↑ http://www.indusbusinessjournal.com/Media/PublicationsArticle/2h4v64gf.pdf
- ↑ http://www.businessweek.com/stories/1999-05-30/hot-growth-companies
- ↑ http://www.businessweek.com/1998/22/b3580036.htm
- ↑ http://www.businessweek.com/pdfs/hotgrowth.pdf