Expect retail to be a fast growing vertical for co: Zensar

A: What is happening today is that we are trying to make many of our manufacturing and retail customers work with us on the long-term which we call managed services, managing a whole bunch of applications, doing offshore work for them and also taking them into the digital space; digital transformation, e-commerce, etc. I think this is one big contract in that area and apart from this we have many more that we are chasing for the new acquisition we have done which will get us firmly into the retail. So, this is part of that overall theme of transforming to core business.

Reema: What is the percentage contribution that you get from the retail segment and what is the growth rate that you are expecting from the retail vertical for Zensar Technology? A: This point of time we have 11-14 percent if you look at the last two years from the retail. This year we expect that to grow to about 18 percent. On an overall basis if you look at manufacturing plus retail, it is almost 75-80 percent and I would expect retail to be 25-30 percent. So, we are placing big bets on retail and it is part of our overall manufacturing retail and distribution segment. Reema: You are expecting retail to be one of the fastest growing segments for your company? A: Absolutely and within that the old area of digital enterprises, mobile commerce and web storefront which is there, we all know about the Flipkart story and that is being repeated by everybody. Today we have customers across US, Europe, even Latin America. We just started a project in Mexico and El Salvador. So, I think we are seeing a global trend towards mobile commerce and e-commerce and we want to capitalise on that. 

Reema: What are the other measures that the company is taking, any other large deals that the company is looking to sign in order to capitalise on this fast growing segment? A: Thanks to the acquisition of this very wonderful company called Professional Access, we have close to eight companies as I said both in US, Europe, Africa, Dubai as well as in Latin America which are all not only working with us on the e-commerce platform but are also scaling substantially. There are two big platforms both Oracle called ATG and Endeca; the companies that we have bought as a platinum partner. So, I think these are all happening. We are also talking to our existing customers and saying can we help you get into the e-commerce space. So, very exciting time at this point of time for Zensar. Nigel: Can I also ask you with regards to a month ago in fact, you were looking to partner to expand your BFSI focused services globally. Can you throw some more light on that? A: If you look at our overall vertical, manufacturing, retail and distribution is a dominant one. We also have a lot of impetus on insurance where we are doing very good work in Africa, Europe and in the US. The partnership you mentioned was primarily in the Middle East where it is very strong Dubai company where we are partnering with them to take some of their products as part of our portfolio. Essentially it is part of us building an ecosystem of small partners which we can take to the market and build a larger story. Reema: When we had spoken to you during your earnings you had indicated that you had seen a slowdown in one profitable large client in Q1? Has that client performed in Q2? A: Q2 I can’t comment on because our results are yet to be declared but as I mentioned that time, it was only a delay of project. At this point of time we have no slow performing client.