Syntel

Syntel Inc
Public
Traded as NASDAQ: SYNT
Industry IT services, IT consulting
Founded Troy, Michigan 1980 (1980)
Founder Bharat Desai, Neerja Sethi
Headquarters Troy, Michigan, USA
Area served
 U.S.
Key people
 Bharat Desai, Chairman & Co-Founder
Prashant Ranade, Co-Chairman
Rakesh Khanna, CEO & President
Services IT, business consulting and outsourcing services
Revenue Decrease $923.8 million (FY 2017)[1]
Decrease $235.7 million (FY 2017)[1]
Increase $166.2 million (FY 2017)[1]
Total assets Increase $483.7 million (FY 2017)[2]
Total equity Increase $483.7 million (FY 2017)[2]
Number of employees
 23,476 (Jun 30, 2018)[3]
Website www.syntelinc.com

Syntel, Inc. is a U.S.-based multinational provider of integrated technology and business services. Headquartered in Troy, Michigan, Syntel utilizes development centers in India. Syntel is a certified minority-owned business (MBE). The company is led by CEO and President Rakesh Khanna.[4]. On 22 July 2018, Syntel entered a definitive agreement to be acquired by Atos S.E.[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]

  • 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]
  • 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.
  • 2002: Syntel opens Global Development Centers in Phoenix, AZ and Pune, India.[9]
  • 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]
  • 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[17]
  • 2016: Rakesh Khanna takes over as Interim CEO and President from Nitin Rakesh, who resigns from the company. Prashant Ranade becomes the Co-Chairman of the Syntel Board[17]
  • 2017: Syntel Names Rakesh Khanna CEO and President [18]
  • 2018: Syntel entered into a definitive merger agreement with France-based IT provider Atos S.E.[19]

Syntel sells to companies in the banking and financial services, insurance, healthcare and life sciences, retail, logistics and telecom, and manufacturing sectors.[20] It uses offshore centers for its IT and KPO services.

Business model

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

Syntel's global headquarters is located in Troy, Michigan, in suburban Detroit, but has over 35 worldwide facilities located in the United States, United Kingdom, Germany, Philippines, Australia, and Canada.[21] 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, and Memphis, Tennessee.

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.[22]

In 2005, Syntel inaugurated a large technology campus in Pune, with an initial capacity of 3,000 employees, which has since been expanded.[23] 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[24] 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.[25] The company has also been allotted 25 acres of land in ELCOT IT Park, Madurai.[26]

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,[27] 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,[28] and received an MBA from the Ross School of Business at the University of Michigan,[29] specializing in Finance.

He was named "Entrepreneur of the Year"[28] by USA Today, NASDAQ and Crain's Detroit Business in 1996.[30] He also received the IIT Alumnus of the Year award[31] from the Indian Institute of Technology in 2004.[29]

Prashant Ranade

Prashant Ranade, has been Syntel's former Executive Vice Chairman[32] and a former Chief Executive Officer and President, a position to which he was appointed in February, 2010.[12][33] 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.[34]

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.[35]

Rakesh Khanna

Rakesh Khanna is the CEO and President.[36] He was appointed interim CEO and President on November 3, 2016.[37] On July 18, 2017, Syntel announced that the "interim" designation had been removed and Khanna was also elected to Syntel's Board of Directors.[38] He previously served as Syntel's Chief Operating Officer January 2012 until November 2016,[39][40] and 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.[41] Khanna holds a B.E. in Mechanical Engineering from Veermata Jijabai Technological Institute (VJTI) and an MBA from Narsee Monjee Institute of Management Studies (NMIMS), Mumbai.[41][42]

Finances

According to Syntel's Fourth Quarter and Full Year 2017 financial results, the company posted Q4 revenues of $239.8 million, Full Year 2017 revenue of $923.8 million and Earnings per share of $1.99.[43]

References

  1. 1 2 3 "Syntel 2017 Financial Results, Date Feb 15, 2018". Files.shareholder.com. Retrieved Feb 15, 2018.
  2. 1 2 "Syntel 2017 Financial Results, Date Feb 15, 2018" (PDF). Files.shareholder.com. Retrieved Feb 15, 2018.
  3. ↑ "Syntel Reports Second Quarter 2018 Financial Results - Syntel, Inc". Syntelinc.com. Retrieved 27 July 2018.
  4. ↑ "Syntel Names Rakesh Khanna CEO and President".
  5. ↑ "Syntel enters definitive agreement to be acquired by Atos S.E."
  6. ↑ "Archived copy". Archived from the original on 2013-10-05. Retrieved 2013-10-03.
  7. 1 2 3 4 "Archived copy". Archived from the original on 2013-10-04. Retrieved 2013-10-03.
  8. ↑ "SYNTEL INC (SYNT) IPO". NASDAQ.com. Retrieved 17 July 2018.
  9. ↑ "Archived copy". Archived from the original on 2013-10-04. Retrieved 2013-10-03.
  10. ↑ "Syntel to expand in Chennai; acquires 27.52 acre land -Software-News-Indiatimes". The Times Of India. May 2, 2005.
  11. ↑ "Syntel Promotes Keshav Murugesh to Chief Executive Officer". Bloomberg.
  12. 1 2 "Syntel names Prashant Ranade new CEO - CIOL". Ciol.com. 4 February 2010. Retrieved 17 July 2018.
  13. ↑ "Archived copy". Archived from the original on 2013-10-10. Retrieved 2013-10-03.
  14. ↑ "Syntel Reports Fourth Quarter and Full Year 2011 Financial Results - Syntel, Inc". Syntelinc.com. Retrieved 17 July 2018.
  15. ↑ "Archived copy". Archived from the original on 2013-10-05. Retrieved 2013-10-03.
  16. ↑ "Syntel Expands Global Delivery Capacity With Development Center in the Philippines". Marketwatch.com. Retrieved 17 July 2018.
  17. 1 2 Novinson, Michael (2016-11-04). "Syntel CEO Steps Down, COO Named As Interim Replacement". CRN. Retrieved 2017-05-30.
  18. ↑ "Syntel Names Rakesh Khanna CEO and President". Syntelinc.com. Retrieved 17 July 2018.
  19. ↑ Dummett, Ben; Kostov, Nick (2018-07-22). "French IT Firm Expands in U.S. With $3.4 Billion Deal". Wall Street Journal. ISSN 0099-9660. Retrieved 2018-07-23.
  20. ↑ Presentation, Investor. "Q2 2013 Overview" (PDF). p. 8.
  21. ↑ "Archived copy". Archived from the original on 2013-10-04. Retrieved 2013-10-03.
  22. ↑ "Nov 06, 2012 - Syntel Inc. Reports Operating Results (10-Q)". Gurufocus.com. Retrieved 17 July 2018.
  23. ↑ "IT major's entry evokes much hope". The Hindu.
  24. ↑ "Syntel to set up delivery centre in TN". Thehindubusdinessline.com. Retrieved 17 July 2018.
  25. ↑ "Syntel plans to global development campus in Tirunelveli - The Times of India". The Times Of India. April 24, 2013.
  26. ↑ "ELCOT". Elcot.in. Retrieved 17 July 2018.
  27. ↑ "Bharat-Desai-&-Neerja-Sethi". Siliconindia.com. Retrieved 17 July 2018.
  28. 1 2 Alumni, IIT Bombay. "Bharat Desai IIT-B Alumni Profile" (PDF).
  29. 1 2 "Bharat Desai & family". Forbes.
  30. ↑ "Archived copy". Archived from the original on 2013-10-04. Retrieved 2013-10-03.
  31. ↑ "Archived copy". Archived from the original on 2013-12-01. Retrieved 2013-10-03.
  32. ↑
  33. ↑ "Syntel Appoints Prashant Ranade as Chief Executive Officer and President". Globenewswire.com. Retrieved 17 July 2018.
  34. ↑ "Syntel Inc, SYNT:NSQ directors and dealings - FT.com". markets.ft.com. Retrieved 17 July 2018.
  35. ↑ "Archived copy". Archived from the original on 2014-04-10. Retrieved 2014-04-05.
  36. ↑ "Syntel Names Rakesh Khanna CEO and President" (PDF). Files.shareholder.com. Retrieved 17 July 2018.
  37. ↑ "Syntel Makes Leadership Changes". Financialit.net. Retrieved 17 July 2018.
  38. ↑ Inc., Syntel,. "Syntel Names Rakesh Khanna CEO and President". GlobeNewswire News Room. Retrieved 2017-07-18.
  39. ↑ "Syntel Promotes Rakesh Khanna to Chief Operating Officer". bobsguide. Retrieved 17 July 2018.
  40. ↑ "Archived copy". Archived from the original on 2013-10-05. Retrieved 2013-10-03.
  41. 1 2
  42. ↑ "Archived copy". Archived from the original on 2013-10-04. Retrieved 2013-10-03.
  43. ↑ "Syntel Reports Fourth Quarter and Full Year 2017 Financial Results (NASDAQ:SYNT)" (PDF). investor.syntelinc.com. Retrieved 2018-02-15.
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