ESS to move into new overseas market

By siliconindia staff writer   |   Friday, 05 December 2003, 20:30 IST
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HYDERABAD: At a time when ERP solutions providers are aggressively focusing on the Indian market, Eastern Software Services (ESS), the domestic ERP solutions provider for the SME segment, is moving into new markets overseas targeting small and medium enterprises, particularly in the African continent. The move, aimed at spreading its revenues across different markets, will be supplemented by ESS’ increased focus on pushing the Linux adaptability of its ERP solutions among Indian SMEs. The company has a major presence in Kenya and has recently moved into Tanzania, Uganda and Mauritius. ESS plans to move aggressively in Africa and South East Asian markets. With new market penetration, ESS expects the revenue contribution from foreign markets to increase considerably in the next fiscal. “We have been growing at the rate of 30%-35% every year. At current estimates, ESS would record a Rs 10-crore turnover by March, 2004, and we are targeting a Rs 14-crore turnover by March 2005,” said Mr Anil Bakht, chairman and managing director of ESS. Currently, the revenues from foreign markets constitute 25%-30%, which is likely to shoot up to 40% for the fiscal ending March 2005, mainly on account of new foreign markets. Having started Linux adaptability early this year, the company expects a larger customer traction for the new ERP solution, eBizframe, that is ported on the Linux platform. Mr Bakht put reasonable estimates of 15-20% on the adaptability of Linux among Indian SMEs. Though the adoption is still low, Mr Bakht expects support from the government and large players like IBM will help the market evolve over the next two years. “With low budgets in hand, Indian SMEs are highly price sensitive. There is a definite need for cost-efffective applications for the segment. Large players are also supporting Linux because of its flexibility and security features,” he said (Source: Economic Times)