Annual Report 2016-17

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Annual Report 2016-17

Report of the Directors

Your Directors are pleased to present the Twenty-Seventh Annual Report of your Company along with the Audited

Financial Statements for the onancial year ended March 31, 2017.

The consolidated onancial statements for the year ended March 31, 2017 have been prepared in accordance with

Ind AS. Accordingly, all the onancial information related to FY 2016-17 and FY 2015-16 is stated as per Ind AS in this report.

Business Update

Your Company has the heritage of working with software product companies which sets your Company well to be

successful in the e[panded market. The focus on data, digital and IoT is well aligned with market requirements and is

helping your Company establish leadership.

New technology has had another effect – it takes less effort and less time to get the same things done. This has put

pressure on the e[isting business model of your Company which has traditionally been based on billing on effort.

Your Company had anticipated this shift and organized the business with a clear focus on digital transformation. At

the beginning of last year, to align the organization with this strategy, your Company reorganized the business around

4 (four) key growth areas:

Digital

- focused on the “how” of digital by bringing together technology partner ecosystem, solutions and

a unique architecture to enable enterprises with digital transformation

Alliance

focused on the long-standing and multi-dimensional relationship between Persistent Systems and IBM

Services

- focused on services for software and product development including agile and e[perience design that

are driven by the mainstream adoption of ne[t generation technologies

Accelerite

- focused on products that includes business-critical infrastructure software for enterprises, telecom

operators and the public sector

The results from this strategy are visible and the share of IP-led business and the business resulting out of digital

transformation is more than half of your Company’s total revenue and is growing at a healthy rate. Your Company

continues to be recognized as a thought leader by customers, partners and industry analysts. :ith strategy in place,

your Company’s mantra for the year is focus, collaborate and e[ecute.

Data, Digital and IoT

Digital and IoT, enabled by enterprise data integration deone the building blocks for a software driven business.

Your Company sees this as an important ne[us of technologies for the future. :ith big data and machine learning, it

is possible to build at scale, solutions that combine data from internal enterprise systems, e[ternal data sources and

IoT sensors. :ith connected devices, these intelligent systems are completing the feedback loop by responding in real

time. The ability to build an eco-system that can leverage these insights is helping create new business models that will

monetize these investments.

In line with the market demand and the need to focus on IoT, your Company brought together market-facing IoT groups

from the Alliance and Accelerite as one unit. This will strengthen the IoT offering by leveraging the IP, solutions and

device and sensor partnerships across a wider set of platform partners.

IBM Watson IoT Alliance

Your Company successfully completed the integration of teams acquired from IBM, as part of the agreement entered into

with IBM during last onancial year, to support and e[tend the IBM Continuous /ifecycle Management and Continuous

Engineering product suite. New sites were established in *uadalajara, Me[ico Rehovot, Israel Ottawa, Canada and

Edinburgh, Scotland during the year.

The product suite had good growth during the year and the roadmap is helping set the benchmark for continuous

engineering. Partnership with IBM is helping generate leads and your Company is setting up a center in IBM’s :atson

IoT :orld Headquarters in Munich, *ermany enabling better access to IoT Customers.

Partnerships

Your Company continues to invest in partnerships, building solutions and accelerators, as well as in frameworks for

enterprises to become software-driven. Your Company’s strategy to build platform based solutions has seen very good

growth in the Salesforce and Appian business. Your Company is now a platinum consulting partner for Salesforce.

Continuing the focus on platform based approach, your Company has partnered with Google Cloud Platform, Amazon

:eb Services, Dell Boomi and this should result in good growth in business in the coming year.