ACHIEVING HIS DREAMS WITH VIABLE SOFTWARE SOLUTIONS...

“We are striving to make the company one of the best software application development and services companies in the industry.” Face to Face interview with Dr. Sharad Singhal , CEO, Eclipse Systems Pvt. Ltd.

Why did Eclipse choose to work in areas such as warehousing, ERP and CRM solutions—segments that are still virgin for Indian software and services providers?

When the company started in 1991, we were looking for the right area to be in. We started out as a company interested in acquiring generic programming projects. In this context, we came in contact with a major apparels manufacturer based in the USA that outsourced the development of its Warehouse Management System to us. 
The product we developed, called Distribution Center Management System (DCMS), was a major success. It has undergone several up gradations during the last decade. Today, it is our flagship product and we are actively marketing it to other companies.

How did you succeed in establishing a place for yourself in these globally niche markets? What was your strategy to establish credentials here?

Believe it or not, we started out selling door to door. I stationed myself in the USA and called as many people as I could think of using the various directories available. Many of these calls bore fruit and gave a jump-start to our company. Once we entered the market, our place was secured due to our hard work and excellence. Each customer became a reference for the next customer. These references helped establish trust in the minds of prospective clients.

What is the kind of products and services portfolio that Eclipse has created and what kind of customers is the company targeting at?

The company is targeting medium to large-sized manufacturing and distribution companies whose revenues are in the range of US$100 million to US$1 billion annually. Our product, DCMS is designed to handle all the processes involved in receiving and shipping inventory. We compete with the WMS which is usually available as part of ERP software like SAP. Our goal is to be as feature complete and flexible as possible so that our customers decide not buy the bundled WMS and choose us instead.

What are Eclipse’s strengths in the market and how is the company building on these advantages going forward?

Our main strengths are: A technically qualified workforce from top to bottom and our domain experience and knowledge in the distribution center software domain. We hope that our customers trust our in-depth knowledge of their business and our ability to deliver the solution. Since our product represents mission critical software, the ability to provide real-time support is very important.

What has been Eclipse’s solutions delivery model? Do you see offshoring become extremely big for Indian companies?

The Internet has been the primary delivery mode for our company. We provide services on an outsourcing or subcontracting basis to leading international companies. Activities during the Software Development Life Cycle (SDLC) involving extensive interaction with the users are usually provided on site at the customer’s location. Once the design specifications are finalized, the activities are typically moved offshore. We typically begin development by building a prototype. The client can see what the final application will look like and how it will work. The feedback on the prototype helps us to refine the software design before we begin coding. Most importantly, all processes are specifically tailored to meet the client’s specific requirements and to offer them the best value for their money. So far our customers maintain minimal support staff at their site and trust our large team of people in India to perform all the software support and enhancement work. This enables them to minimize their payroll costs and take the maximum cost advantage that off shore development has to offer. Regarding offshore becoming big for Indian companies, there has been emerging trend towards increased use of offshore outsourcing service providers—especially vendors based in India. Offshore outsourcing services range from business processes (e.g., customer service call centers) to software application maintenance and support, new application development, contract R&D, and systems integration. According to the some research predictions, IT outsourcing to India will grow by 25 percent this year, as companies seek to cut costs and improve quality.

What are the advantages of the offshoring business model vis-à-vis the on-site model? Have Indian companies successfully transitioned from the on-site to offshore environment?

Most Indian companies are transitioning from the on-site to offshore environment. The immediate impact of 9/11 had slowed down the economy and affected the business discussions, and travel and project ramp-ups. But the recovery of the US economy has made outsourcing and offshoring of work a value proposition. As a result, Indian companies are seeing large outsourcing contracts coming their way. The marketing approach has also changed to one where greater emphasis is being laid on business value from IT projects. Further, offshore outsourcing is based on the lower cost of skilled IT labor in countries where outsourcing firms are proliferating (like India, China, Mexico, Hungary, Poland, Russia, the Philippines, etc.). They provide high-quality services, enabling their customers to receive equivalent results, at a lower cost, versus in-house or domestic outsourced services. The companies that cannot afford to operate their own personal Information Technology (IT) departments, hire On Site Services organizations to manage their network and computer systems. On the other hand, offshore outsourcing means more than simply continuing current operations with less expensive labor. Offshore services are advantageous for several reasons including issues such as Asset Protection, Confidentiality, Privacy, Tax Minimization, Investment Diversification, International Trade, access to scarce skills, cost savings, among others

.How can Indian software companies become more competitive in the international environment? What are the factors they should look at while catering to global customers?

The challenge for the Indian IT companies is to combine their core competency in the area of application development with a sustained marketing initiative targeted at both the domestic and international markets. The top software development companies in India must collaborate with the government with a view to developing branded applications for sale in the overseas markets. Mergers and Acquisitions have also emerged as key growth drivers in the Indian software services landscape. It is relevant for Indian IT enterprises as it gives them the opportunity for growth, acquisition of complementary strengths and new customers, expansion into fresh areas, a widening of the portfolio of the addressable market, offshore capabilities and access to brand and capital. Further, if the Indian software companies are to excel in the global market, they should not confine their export thrust to just a few developed countries like the US, UK and Japan, but spread their reach to the developing countries as well.

What is Eclipse’s roadmap and where does the company see itself five years from now?

The management operates under the three principles of integrity, innovation and initiative (the 3Is).