Syntel, Inc. (NASDAQ: SYNT) is a global provider of Information Technology (IT) and Knowledge Process Outsourcing (KPO) solutions, with global development centers in India and the United States.
Syntel was founded in Troy, Michigan in 1980 with an initial investment of $2,000. Its founders were Bharat Desai, an Indian graduate of the University of Michigan's Stephen M. Ross School of Business, and Neerja Sethi. Originally named Systems International, the company began providing software staffing services to local corporations, earning $30,000 in its first year.
On February 1, 2010, Syntel announced the promotion of Prashant Ranade to the position of CEO. Founder and former CEO Bharat Desai will continue to serve as Chairman of the Board, and is the majority shareholder.
As of December 31, 2010, Syntel has over 17,383 employees and annual revenues in excess of $532 million.
Syntel, Inc. (Syntel), incorporated on April 15, 1980, is a provider of information technology and knowledge process outsourcing (KPO) services to Global 2000 companies. The Company’s service offerings are grouped into four segments: Applications Outsourcing, KPO, e-Business and TeamSourcing. Applications Outsourcing consists of outsourcing services for ongoing management, development and maintenance of business applications, including testing and migration services. KPO consists of customized outsourcing solutions that enhance critical process outsourced solutions, such as transaction processing, loan servicing, retirement processing and collections and payment processing. Syntel’s primary KPO focus is in the financial services, healthcare and insurance sectors. e-Business consists of practice areas in Web solutions, Data Warehousing/Business Intelligence, Enterprise Resource Planning (ERP) and Enterprise Applications Integration (EAI) services. TeamSourcing consists of professional Information Technology (IT) consulting services.
Applications Outsourcing
Through Applications Outsourcing, Syntel provides applications management services for ongoing management, development and maintenance of customers’ business applications, including testing and migration services. Syntel assumes responsibility for and manages selected application support functions for the customer. Utilizing its developed methodologies, processes and tools, the Company is able to assimilate the customer’s business process knowledge in order to develop and deliver services specifically tailored for that customer. Applications Outsourcing services accounted for approximately 73% of total consolidated revenue during the year ended December 31, 2009.
KPO
Syntel provides outsourced solutions for a client’s business processes. Syntel uses a tool called Identeon to assist with strategic assessments of business processes and to identify the right ones for outsourcing. Syntel focuses on the middle and back-office business processes of the transaction cycle in the capital markets, banking, healthcare and insurance industries. Syntel’s insurance KPO services include claims processing and policy administration, among others. Its banking and capital markets KPO services include investment management global operations including brokerage operations, middle office reconciliation, transfer agency, fund accounting, performance and attribution, trade processing, compliance monitoring, corporate actions, custody reconciliation, hedge fund administration and data management. KPO services for the healthcare and life sciences industry include records management, clinical data management and claims solutions. KPO accounted for approximately 18% of total consolidated revenue during 2009.
e-Business
Through its e-Business practices, Syntel provides strategic advanced technology services for architecture, design, development, implementation and maintenance of solutions to enable customers to be more competitive. The Company provides customized technology services in the areas of Web solutions, including architecture, enablement of legacy applications and portal development. Syntel has entered into several alliances with software firms and IT application software infrastructure providers. e-Business accounted for approximately 7% of total consolidated revenue during 2009.
TeamSourcing
Through TeamSourcing, Syntel provides professional IT consulting services directly to customers. TeamSourcing services include systems specification, design, development, implementation and maintenance of IT applications involving diverse computer hardware, software, data and networking technologies and practices. TeamSourcing services are provided by individual professionals and teams of professionals dedicated to assisting customer IT departments with systems projects and ongoing functions. TeamSourcing accounted for approximately 2% of total consolidated revenue during 2009.
The Company competes with Cognizant, Infosys Technologies, Tata Consultancy Services, Wipro Technologies, Accenture, IBM Global Services, HCL, and WNS.
Syntel's rapid growth during the early years prompted its leadership to begin exploring additional service offerings to augment its core IT staffing business.
In 1988, Syntel began providing development and maintenance services to its clients. With the addition in 1992 of its first wholly owned development centers in India, Syntel began offering software outsourcing services on an onsite/offshore model, which connected software developers in India to project managers at the client's location via an international telecommunications network.
This model allowed Syntel to offer the cost of offshore labor rates with the flexibility and responsiveness of onsite project management. This method of IT service delivery is now widely known as the Global Delivery Model, and Syntel was among the first US-based companies to offer this service to its clients. .
Syntel's global headquarters is located in Troy, Michigan, in suburban Detroit. Syntel has 27 worldwide facilities, located in the United States, India, England, Germany, Singapore, and Hong Kong. The company's offshore software development centers are located in Mumbai, Hyderabad, Chennai, and Pune, India. Its US-based development centers are located in Phoenix, Arizona; Nashville, Tennessee; and Memphis, Tennessee.
Syntel's Mumbai development centers currently employ over 4,000 software professionals, with another 2,000 located in Chennai. In 2004, Syntel broke ground on a new technology campus in Pune, India. The first phase, opened in 2005, has capacity for 3,000 employees. When completed, the facility will house over 9,000 software engineers.
Syntel also opened the first phase of its new 27-acre (110,000 m2) technology campus in Chennai, India in May, 2010. The Chennai campus currently has capacity for 1,700 developers, with plans to eventually expand the facility to accommodate a staff of 10,000.
OVERALL
Beta: 1.28
Market Cap (Mil.): $2,309.29
Shares Outstanding (Mil.): 41.74
Annual Dividend: 0.24
Yield (%): 0.43
FINANCIALS
SYNT.O Industry Sector
P/E (TTM): 20.30 20.61 21.01
EPS (TTM): -2.66 -- --
ROI: 25.73 21.06 16.02
ROE: 26.40 22.92 17.63
Key Days
1980: Syntel 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, making it one of the first U.S.-based IT service companies to employ a global delivery model.
1994: Syntel’s revenues top $50 million and employs over 1,000 staff.
1994: Syntel opens a third Global Development Center in Cary, North Carolina, which serves as US hub for Syntel's global voice and data network.
1997: Syntel becomes a public company in August, as the stock begins trading on NASDAQ as SYNT; 3.45 million shares floated in its Initial Public Offering (IPO); 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; Syntel ranked #2 in Forbes’ “200 Best Small Companies in America”
2000: Syntel begins exploring BPO service offerings by migrating its own HR, Finance and Helpdesk operations from the US to India.
2001: Syntel’s Global Development Centers 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.
2003: Syntel’s Global Development Centers in Mumbai and Chennai achieve ISO 9001:2000 certification.
2004: Syntel opens 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.
2008: Syntel breaks ground on its Chennai technology campus and records more than $400 million in revenues for the first time.
2009: Syntel promotes Keshav Murugesh to the post of President & CEO. Bharat Desai remains as Chairman of the Board.
2010: Prashant Ranade becomes Syntel CEO; Syntel opens the first phase of its Chennai technology campus
Name Age Since Current Position
Bharat Desai 58 2009 Chairman of the Board
Prashant Ranade 58 2010 President, Chief Executive Officer, Director
Arvind Godbole 53 2006 Chief Financial Officer, Chief Information Security Officer
Rakesh Khanna 48 2005 President - Business Unit of Banking & Finance
V. Raj 47 2010 Chief Executive Officer of State Street Syntel Services Private Limited
Anil Jain 52 2006 Senior Vice President - Insurance Vertical, Business Unit Head
R. Ramdas 56 2010 Senior Vice President - Corporate Services and Global Procurement Head
Raja Ray 48 2009 Senior Vice President - Retail, Logistics and Telecom Business Unit
Amit Chatterjee 44 2010 Senior Vice President, Europe Head
Murlidhar Reddy 41 2006 Vice President - Healthcare and Life Sciences Business Unit Head
Avinash Salelkar 48 2011 Vice President - Automotive and Manufacturing and PLM and ES Business Unit Head
Daniel Moore 56 1998 Chief Administrative Officer, Secretary, General Counsel
Rajesh Save 45 2011 Global Head - Human Resources
Paritosh Choksi 58 1997 Lead Independent Director
Neerja Sethi 56 2008 Director
George Mrkonic 58 1997 Independent Director
Thomas Doke 55 2009 Independent Director
Rajesh Mashruwala 59 2010 Independent Director
COMPANY ADDRESS
Syntel Inc
525 E. Big Beaver Road
Suite 300
Troy MI 48083
Syntel was founded in Troy, Michigan in 1980 with an initial investment of $2,000. Its founders were Bharat Desai, an Indian graduate of the University of Michigan's Stephen M. Ross School of Business, and Neerja Sethi. Originally named Systems International, the company began providing software staffing services to local corporations, earning $30,000 in its first year.
On February 1, 2010, Syntel announced the promotion of Prashant Ranade to the position of CEO. Founder and former CEO Bharat Desai will continue to serve as Chairman of the Board, and is the majority shareholder.
As of December 31, 2010, Syntel has over 17,383 employees and annual revenues in excess of $532 million.
Syntel, Inc. (Syntel), incorporated on April 15, 1980, is a provider of information technology and knowledge process outsourcing (KPO) services to Global 2000 companies. The Company’s service offerings are grouped into four segments: Applications Outsourcing, KPO, e-Business and TeamSourcing. Applications Outsourcing consists of outsourcing services for ongoing management, development and maintenance of business applications, including testing and migration services. KPO consists of customized outsourcing solutions that enhance critical process outsourced solutions, such as transaction processing, loan servicing, retirement processing and collections and payment processing. Syntel’s primary KPO focus is in the financial services, healthcare and insurance sectors. e-Business consists of practice areas in Web solutions, Data Warehousing/Business Intelligence, Enterprise Resource Planning (ERP) and Enterprise Applications Integration (EAI) services. TeamSourcing consists of professional Information Technology (IT) consulting services.
Applications Outsourcing
Through Applications Outsourcing, Syntel provides applications management services for ongoing management, development and maintenance of customers’ business applications, including testing and migration services. Syntel assumes responsibility for and manages selected application support functions for the customer. Utilizing its developed methodologies, processes and tools, the Company is able to assimilate the customer’s business process knowledge in order to develop and deliver services specifically tailored for that customer. Applications Outsourcing services accounted for approximately 73% of total consolidated revenue during the year ended December 31, 2009.
KPO
Syntel provides outsourced solutions for a client’s business processes. Syntel uses a tool called Identeon to assist with strategic assessments of business processes and to identify the right ones for outsourcing. Syntel focuses on the middle and back-office business processes of the transaction cycle in the capital markets, banking, healthcare and insurance industries. Syntel’s insurance KPO services include claims processing and policy administration, among others. Its banking and capital markets KPO services include investment management global operations including brokerage operations, middle office reconciliation, transfer agency, fund accounting, performance and attribution, trade processing, compliance monitoring, corporate actions, custody reconciliation, hedge fund administration and data management. KPO services for the healthcare and life sciences industry include records management, clinical data management and claims solutions. KPO accounted for approximately 18% of total consolidated revenue during 2009.
e-Business
Through its e-Business practices, Syntel provides strategic advanced technology services for architecture, design, development, implementation and maintenance of solutions to enable customers to be more competitive. The Company provides customized technology services in the areas of Web solutions, including architecture, enablement of legacy applications and portal development. Syntel has entered into several alliances with software firms and IT application software infrastructure providers. e-Business accounted for approximately 7% of total consolidated revenue during 2009.
TeamSourcing
Through TeamSourcing, Syntel provides professional IT consulting services directly to customers. TeamSourcing services include systems specification, design, development, implementation and maintenance of IT applications involving diverse computer hardware, software, data and networking technologies and practices. TeamSourcing services are provided by individual professionals and teams of professionals dedicated to assisting customer IT departments with systems projects and ongoing functions. TeamSourcing accounted for approximately 2% of total consolidated revenue during 2009.
The Company competes with Cognizant, Infosys Technologies, Tata Consultancy Services, Wipro Technologies, Accenture, IBM Global Services, HCL, and WNS.
Syntel's rapid growth during the early years prompted its leadership to begin exploring additional service offerings to augment its core IT staffing business.
In 1988, Syntel began providing development and maintenance services to its clients. With the addition in 1992 of its first wholly owned development centers in India, Syntel began offering software outsourcing services on an onsite/offshore model, which connected software developers in India to project managers at the client's location via an international telecommunications network.
This model allowed Syntel to offer the cost of offshore labor rates with the flexibility and responsiveness of onsite project management. This method of IT service delivery is now widely known as the Global Delivery Model, and Syntel was among the first US-based companies to offer this service to its clients. .
Syntel's global headquarters is located in Troy, Michigan, in suburban Detroit. Syntel has 27 worldwide facilities, located in the United States, India, England, Germany, Singapore, and Hong Kong. The company's offshore software development centers are located in Mumbai, Hyderabad, Chennai, and Pune, India. Its US-based development centers are located in Phoenix, Arizona; Nashville, Tennessee; and Memphis, Tennessee.
Syntel's Mumbai development centers currently employ over 4,000 software professionals, with another 2,000 located in Chennai. In 2004, Syntel broke ground on a new technology campus in Pune, India. The first phase, opened in 2005, has capacity for 3,000 employees. When completed, the facility will house over 9,000 software engineers.
Syntel also opened the first phase of its new 27-acre (110,000 m2) technology campus in Chennai, India in May, 2010. The Chennai campus currently has capacity for 1,700 developers, with plans to eventually expand the facility to accommodate a staff of 10,000.
OVERALL
Beta: 1.28
Market Cap (Mil.): $2,309.29
Shares Outstanding (Mil.): 41.74
Annual Dividend: 0.24
Yield (%): 0.43
FINANCIALS
SYNT.O Industry Sector
P/E (TTM): 20.30 20.61 21.01
EPS (TTM): -2.66 -- --
ROI: 25.73 21.06 16.02
ROE: 26.40 22.92 17.63
Key Days
1980: Syntel 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, making it one of the first U.S.-based IT service companies to employ a global delivery model.
1994: Syntel’s revenues top $50 million and employs over 1,000 staff.
1994: Syntel opens a third Global Development Center in Cary, North Carolina, which serves as US hub for Syntel's global voice and data network.
1997: Syntel becomes a public company in August, as the stock begins trading on NASDAQ as SYNT; 3.45 million shares floated in its Initial Public Offering (IPO); 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; Syntel ranked #2 in Forbes’ “200 Best Small Companies in America”
2000: Syntel begins exploring BPO service offerings by migrating its own HR, Finance and Helpdesk operations from the US to India.
2001: Syntel’s Global Development Centers 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.
2003: Syntel’s Global Development Centers in Mumbai and Chennai achieve ISO 9001:2000 certification.
2004: Syntel opens 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.
2008: Syntel breaks ground on its Chennai technology campus and records more than $400 million in revenues for the first time.
2009: Syntel promotes Keshav Murugesh to the post of President & CEO. Bharat Desai remains as Chairman of the Board.
2010: Prashant Ranade becomes Syntel CEO; Syntel opens the first phase of its Chennai technology campus
Name Age Since Current Position
Bharat Desai 58 2009 Chairman of the Board
Prashant Ranade 58 2010 President, Chief Executive Officer, Director
Arvind Godbole 53 2006 Chief Financial Officer, Chief Information Security Officer
Rakesh Khanna 48 2005 President - Business Unit of Banking & Finance
V. Raj 47 2010 Chief Executive Officer of State Street Syntel Services Private Limited
Anil Jain 52 2006 Senior Vice President - Insurance Vertical, Business Unit Head
R. Ramdas 56 2010 Senior Vice President - Corporate Services and Global Procurement Head
Raja Ray 48 2009 Senior Vice President - Retail, Logistics and Telecom Business Unit
Amit Chatterjee 44 2010 Senior Vice President, Europe Head
Murlidhar Reddy 41 2006 Vice President - Healthcare and Life Sciences Business Unit Head
Avinash Salelkar 48 2011 Vice President - Automotive and Manufacturing and PLM and ES Business Unit Head
Daniel Moore 56 1998 Chief Administrative Officer, Secretary, General Counsel
Rajesh Save 45 2011 Global Head - Human Resources
Paritosh Choksi 58 1997 Lead Independent Director
Neerja Sethi 56 2008 Director
George Mrkonic 58 1997 Independent Director
Thomas Doke 55 2009 Independent Director
Rajesh Mashruwala 59 2010 Independent Director
COMPANY ADDRESS
Syntel Inc
525 E. Big Beaver Road
Suite 300
Troy MI 48083