|Traded as||NASDAQ: SYNT|
|Industry||IT services, IT consulting|
|Founded||Troy, Michigan 1980|
|Founders||Bharat Desai, Neerja Sethi|
|Headquarters||Troy, Michigan, USA|
|Key people||Bharat Desai, Chairman
Prashant Ranade, Executive Vice Chairman
Nitin Rakesh, CEO & President
|Services||IT, business consulting and outsourcing services|
|Revenue||$824.8 million (FY 2013)|
|Operating income||$267.6 million (FY 2013)|
|Net income||$219.6 million (FY 2013)|
|Total assets||$997.1 million (FY 2013)|
|Total equity||$722.5 million (FY 2013)|
|Employees||24,122 (Jun 2014)|
Syntel, Inc. is a U.S. based multinational provider of integrated technology and business services. Headquartered in Troy, Michigan, Syntel services its clients through 17 global development centers in India and the United States. Syntel is a certified minority-owned business (MBE).
On April 21, 2014 Prashant Ranade, former CEO and President of Syntel was elevated to Executive Vice Chairman of the Syntel Board, while Nitin Rakesh took over as the CEO and President. Founder and Ex-CEO Bharat Desai will continue to serve as Chairman of the Board, and is the majority shareholder.
- 1 History
- 2 Business Model
- 3 Operations
- 4 Leadership and Board of Directors
- 5 Corporate affairs
- 6 Awards and Recognitions
- 7 References
- 8 External links
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), and some major Government Revenue projects, earning $30,000 in its first year.
- 1980: Syntel is 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 – one of the first U.S.- based IT service companies to employ a Global Delivery model.
- 1994: Syntel’s posts revenue of $50 million while employee count increases to 1,000.
- 1994: Syntel opens a third Global Development Center in Cary, North Carolina, which serves as the U.S. hub for Syntel's global voice and data network.
- 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; 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.
- 2000: Syntel begins exploring BPO service offerings by migrating its own HR, Finance and Help desk operations from the U.S. to India.
- 2001: Syntel’s Global Development Centers are 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 a 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.
- 2009: Syntel promotes Keshav Murugesh to the post of President and CEO. Bharat Desai remains the Chairman of the Board.
- 2010: Prashant Ranade is appointed Syntel CEO; Syntel opens the first phase of its Chennai technology campus.
- 2011: Rakesh Khanna becomes Chief Operating Officer of Syntel; Syntel closes FY 2011 with $642.4 million in revenue.
- 2013: Syntel breaks ground on a new Global Development Center in Tirunelveli, India, and opens facilities in Manila, Philippines 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
Syntel is a provider of integrated technology and business solutions to companies in the banking and financial services, insurance, healthcare and life sciences, retail, logistics and telecom, and manufacturing sectors. It follows a global delivery model for its IT and KPO services.
The organization has introduced support services for every business vertical to leverage dedicated industry practices. These horizontal services include Application Services, Cloud services, Testing, Architecture, IT Infrastructure Management, Business Intelligence, and KPO services.
Syntel's growth during the early years prompted their leadership to explore additional service offerings to augment the core IT staffing business. 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.
Geographies (Global Offices)
Syntel's global headquarters is located in Troy, Michigan, in suburban Detroit, but has 30 worldwide facilities located in the U.S., UK, Germany, Philippines, Australia, and Canada. The company's offshore software development centers are located in Mumbai, Chennai, Gurgaon and Pune, India, as well as Manila, Philippines. The Company's US-based development centers are located in Phoenix, Arizona, Nashville, Tennessee, Memphis, Tennessee and suburban Baltimore, Maryland.
Syntel's Mumbai development centers currently employ over 4,000 software professionals, with another 2,000 located in Chennai. Syntel’s new technology campus in Pune was opened in 2005 with a capacity for 3,000 employees. On completion in 2013, the final phase had a working strength of over 9,000. Syntel also opened the first phase of its new 27-acre (110,000 m2) Chennai technology campus in May 2010.
The company has over 80% of its billable workforce in India. Also it has alloted 25 acres of land in ELCOT IT Park, Madurai. On April 24, 2013, Syntel broke ground on a new Global Development Campus (GDC) in Tirunelveli, Tamil Nadu as an expansion of its campus-based infrastructure strategy. This is estimated to have a capacity for more than 2,500 employees and the campus will feature an on-premises wind and solar farm for generating renewable energy.
Syntel provides clients with IT and Knowledge Process Outsourcing (KPO) services, servicing clients in the Banking and Financial Services, Healthcare and Life Sciences, Insurance, Manufacturing, and Retail, Logistics and Telecom industries. Syntel’s teams support these industries in areas of Business Intelligence/Data Warehousing, ERP, Enterprise Integration Services, Mobility, and Enterprise Architecture Solutions.
Syntel posted a 14% year-over-year growth rate in 2013 with an operating margin of 32.4%. The company spent $20.5 million in CAPEX, largely in support of campus infrastructure during 2013, and finished the year with cash and short-term investments of $668.9 million.
Leadership and Board of Directors
Bharat Desai is the chairman of Syntel. He co-founded Syntel in 1980 along with his wife, Neerja Sethi, 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, and received an MBA from the Ross School of Business at the University of Michigan, specializing in Finance.
He was named "Entrepreneur of the Year" by USA Today, NASDAQ and Crain's Detroit Business in 1996. He also received the IIT Alumnus of the Year award from the Indian Institute of Technology in 2004.
Prashant Ranade, Vice Chairman of the Board since April 21, 2014, is Syntel's former Chief Executive Officer and President, a position he was appointed to in February, 2010. 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.
Nitin Rakesh, Syntel's former President – Americas, Business Development and Nearshoring Center at Syntel, Inc. took over as the CEO and President on April 21, 2014. Previously, he has handled many senior leadership roles at companies like Motilal Oswal Asset Management Company Ltd., State Street Syntel Services, TCG Group.
Rakesh Khanna has been Syntel’s Chief Operating Officer since January 2012. He previously served 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. Khanna holds a B.E. in Mechanical Engineering from Victoria Jubilee Technical Institute (VJTI) and an MBA from Narsee Monjee Institute of Management Studies (NMIMS), Mumbai.
According to Syntel's Second Quarter 2014 financial results, the company posted revenue of $228.3 million, a 4% sequential increase and up 13% from year ago. Syntel's Q2 2014 EPS stands at $1.41 per diluted share, a 2% sequential improvement and 24% better than the same period last year. The company’s employee count stands at 24,122 globally as of June 30, 2014.
Corporate Social Responsibility
S'Prayas is Syntel’s Corporate Social Responsibility initiative, launched in 2006. The volunteer-driven program is aimed at educating underprivileged children. S’Prayas leverages Information Technology to provide underprivileged children with access to quality education. The volunteers work with local communities around Syntel campuses in Mumbai, Pune and Chennai to empower underprivileged children through education. Some of their programs include computer literacy, remedial education, mentoring, real life skills and spoken English classes.
The initiative was awarded the 2008-2009 Award of Excellence for Corporate Social Responsibility by the Indian Educational Society-Mumbai. S’Prayas was also named as one of the finalists at the annual NASSCOM Social Innovation Honors (NSIH) 2013, in the Corporate – CSR Category.
Awards and Recognitions
- Crain's Detroit Business "The Fastest Growing Companies" (#30 in 2013)
- CRN's 2013 Solution Provider 500 (#44 in 2013)
- Gartner’s Top 10 India-Based IT Services Providers (#10 in 2013)
- International Association of Outsourcing Professionals "The Global Outsourcing 100" (#31 in 2013, #38 in 2012, #48 in 2011)
- Ranked among the top performing 344 public companies by Harvard Business Review
- NASSCOM’s Top 10 players in IT Services (#9 in 2012)
- NASSCOM’s #15 BPO Export Company in India (2012)
- NASSCOM’s #16 IT - BPO Employer in India (2012, 2011)
- Forbes "200 Best Small Companies in America" (2012, 2011, 2009, 2008, 2004, 2003, 2002, 2001, 1998)
- Global Services Media and Neo Advisory "Global Services 100" Sub Lists (2012, 2011, 2010, 2009, 2008, 2007)
- Global HR Excellence Awards, 2010 - Organization with Innovative HR Practices, Best Overall Recruiting and Staffing Organization of the Year, Most Innovative Recruiting and Staffing Program/Initiative – Syntel’s Life Enrichment Program, Award for Excellence in HR through Technology, (2010)
- "Best Innovative Lean Project" award, 10th Annual Asian Six Sigma and Lean Process Improvement Summit (2009)
- Golden Peacock Innovation Award-Special Commendation for creating innovations through lean approaches (2009)
- The Black Book of Outsourcing's World's 50 Best Managed BPO Vendors (2008, 2007, 2006, 2005)
- Crain's Detroit Business "Largest Computer Service Companies" (2007, 2003, 2002)
- IndUS Business Journal, "Largest Indus Outsourcing Firms" (2005, 2004)
- Business Week's "Hot Growth Companies" (1999, 1998)
- "Syntel 2013 Financial Results, Date Feb 13, 2013". files.shareholder.com. Retrieved Feb 13, 2012.
- "Syntel Q2 2014 Financial Results, Date Jul 17, 2014". files.shareholder.com. Retrieved July 17, 2014.
- Presentation, Investor. "Q2 2013 Overview". p. 8.
- Overview, Investors. "Vertical Alignment". http://files.shareholder.com/. p. 4.
- Alumni, IIT Bombay. "Bharat Desai IIT-B Alumni Profile".
- "Innovation and Lean Business Awards".
- "2009 Recognition".