Zensar is a rapidly growing, mid-sized Indian IT services company with a collaborative management philosophy and innovative HR policies. One of its practices, Vision Communities, is an inclusive forum for innovation and strategy formulation.

1. Case Study: Zensar Technologies
For
Managerial Economics
By
Renzil D’cruz
Web Presence:
about.me/renzilde
linkedin.com/in/renzilde
RenzilDe.com
Under Guidance of
Dr. P.A.Johnson

2. Zensar Technologies
Our Mission
Leveraging technology and processes to help customers attain their goals.
Our Vision
Transformation partners to global corporations.
About Zensar
Zensar Technologies is a global information technology services and business process
outsourcer headquartered in Pune, India. It is a software wing of RPG Group, and offers a range of
integrated information technology (IT) and BPO products and services to Fortune 500 clients.
Zensar has a marketing presence in the US, Europe, Asia Pacific and Australia. The company has operations
and a customer base spanning across 18 countries including software development centres at Pune and
Hyderabad in India and Gdansk in Poland.
Zensar service areas include Application Support and Development, Application portfolio management,
Testing, Enterprise Collaboration and Content Management, Enterprise Application Integration, Business
Intelligence & Data Warehousing. Zensar's core competency is Application Modernization, using Zensar's
SBP framework.
Zensar is the world's first enterprise-wide SEI CMM Level 5 Company with activity that spans across
Utilities, Retail and Distribution, Banking, Financial Services and Insurance, Manufacturing and
Telecommunications.
Zensar Technologies (Parent Company RPG Group) provides Services such as Application Portfolio
Management, Enterprise Application Service, Innovative Technology Services, Business process
outsourcing and optimisation, First Time Outsourcing and it is 3,000 crore (US$567 million) company
having more than 7000 employees dated April 2012.

3. Achievement Highlights
Zensar profit net up by 35 % at Rs 20.22 cr - Leading software solution company and BPO services provider
Zensar Technologies Ltd has reported a good year-on-year profit growth for the quarter ended December 31.
It posted a y-o-y net profit of Rs 20.22 crore as against Rs 15.02 crore posted during the same period of the
previous year reflecting a growth of 34.6 per cent.
Key People
Dr.Ganesh Natarajan, Vice Chairman & CEO,Zensar Technologies.
Vivek Gupta, Chief Executive, IBS and Executive Chairman, Akibia
Nitin Parab, Chief Executive and Global Head, Enterprise Transformation Services (ETS)
Harish Gala, Global Head, Enterprise Applications (Oracle and SAP)
Yogesh Patgaonkar, Global Head, Human Resources
Sanjay Marathe, Head, Strategic Services Unit and CTO
Ajay Bhandari, Chief Corporate Development Officer
S. Balasubramaniam, CFO
Scrip ID
: ZENSAR
Scrip Code : 504067 (BSE)
Industry : IT Consulting & Software
Company :ZENSAR TECHNOLOGIES LTD. 504067
Period: Year 2008 to Year 2012
(All Prices in )
No. of
Trades
Total
Turnover
Deliverable
Quantity
% Deli.
Qty to
Traded
Qty
* Spread
Low
Close
No. of
Shares
2008 192.00 203.70 71.00
78.35
32,07,206
50,998
43,42,47,053
19,43,515
60.60
132.70
2009
324.10 55,35,846
83,647
1,16,74,84,788
31,09,765
56.18
286.35
2010 326.00 365.90 151.15 166.65 64,31,592 1,40,373 1,84,34,12,495
25,49,743
39.64
214.75
2011 167.00 193.30 113.15 143.30 18,94,760 60,699
31,00,39,077
2012 143.25 302.45 133.55 296.85 48,88,293 1,63,593 1,07,25,96,009
* Spread
H-L : High-Low
C-O : Close-Open
9,79,811
16,48,760
51.71
33.73
80.15
168.90
Year
Open
81.00
High
351.00 64.65
H-L
C-O
113.65
243.10
159.35
-23.70
153.60

4. Price Movement
Index Comparison
Performance Chart
Ownership Pattern

5. Annual Trends
(in Cr.)
2011 - 12
Revenue
Other Income
Total Income
Expenditure
Interest
PBDT
depreciation
PBT
Tax
Net Profit
Equity
Reserves
EPS
CEPS
OPM %
NPM %
712.75
27.91
740.66
-577.36
-1.03
162.27
-25.05
137.22
-42.67
94.55
43.41
374.01
21.79
27.55
22.91
13.27
Detailed
Consolidated
2010 - 11
2009 - 10
Income Statement(View in (Million))
584.52
502.32
7.31
2.91
591.83
505.23
-478.85
-393.18
-0.86
-0.55
112.12
111.50
-25.88
-24.92
86.24
86.58
2.24
-2.43
88.48
84.15
43.30
21.58
341.27
272.34
20.47
35.77
26.41
50.54
19.33
22.31
15.14
16.75
Detailed
Detailed
Consolidated
Consolidated
2008 - 09
2007 - 08
428.00
2.62
430.62
-341.11
-0.54
88.97
-22.29
66.68
-6.21
60.47
23.97
230.46
25.23
34.53
20.91
14.13
Detailed
Consolidated
335.87
11.91
347.78
-282.36
-1.12
64.30
-15.64
48.66
-3.29
45.37
23.96
181.05
18.95
-19.48
13.51
Detailed
Consolidated
Type
Audited
Date Begin
01-Apr-11
Date End
31-Mar-12
Description
Amount (Rs. million)
Net Sales / Income from Operations
7,127.50

6. Net Sales / Income from Operations
7,001.70
Other Operating Income
125.80
Expenditure
-6,024.10
Other Expenditure
-1,262.00
Employee Benefit Expenses
-4,277.30
Depreciation & amortization expense
-250.50
Purchase of Stock in Trade
-234.30
Profit from Operations before Other Income, Interest and Exceptional Items
1,103.40
Other Income
279.10
Profit before Interest and Exceptional Items
1,382.50
Interest
-10.30
Finance Costs
-10.30
Profit after Interest but before Exceptional Items
1,372.20
Exceptional Items
0.00
Profit (+)/ Loss (-) from Ordinary Activities before Tax
1,372.20
Tax
-426.70
Net Profit (+)/ Loss (-) from Ordinary Activities after Tax
945.50
Extraordinary Items
0.00
Net Profit
945.50
Equity Capital
434.10
Face Value (in Rs)
10.00
Reserves
3,740.10
EPS before Extraordinary items (in Rs)
EPS after Extraordinary items (in Rs)
Basic EPS after Extraordinary items
21.79
Diluted EPS after Extraordinary items
21.55
Number of Public Shareholding
2,25,50,970.00

7. Percentage of Public Shareholding
51.95
Promoters and Promoter Group Shareholding
Pledged / Encumbered
Number of Shares
0.00
Percentage of Shares (as a % of the total shareholding of promoter and promoter
0.00
group)
Percentage of Shares (as a% of the total share capital of the company)
0.00
Non-encumbered
Number of Shares
2,08,58,804.00
Percentage of Shares (as a% of the total shareholding of promoter & prom
group)
100.00
Percentage of Shares (as a % of the total share capital of the company)
48.05
Notes
Consistent All round Grouth

8. Key Milestone
Consolidate number for Q4

9. Consolidate Performance FY 2011

10. Geographical Speared of revenue
Service Contribution to revenue

13. M&R industry overview among top spenders in IT

14. Sub Vertical Specific Strategy
Service Specific strategy

15. Technology specific strategy

16. Sub vertical specific strategy

17. Service specific strategy

18. Technology Specific strategy

19. Ratios
current ratio is also called as working capital as well as bankers ratio it is given as current assets divided
by current liabilities.
This ratio indicates two information
•
Working capital position
•
Short term solvency position
1. This ratio shows capacity of the company to pay its current liabilities
2. The standard ratio is 2;1 which indicates that for every 1 rupee liability there should be 2
rupees of current assets
3. If the ratio is low it indicates inadequate working capital and unsatisfactory short term
solvency position .
4. If the ratio is very high it indicates inefficient utilisation of shareholders funds
2.5
2
1.5
current ratios
1
0.5
0
2008
2009
2010
2011
2012
Debt Equity ratio it is given by debt divided by equity.
1.
2.
3.
4.
•
Debt =borrowed funds
•
Equity=proprietors funds
this ratios shows relationship between own funds and borrowed funds
a standard ratio is 2:1 which indicates that for every one rupees of own funds 2 rupees can
be borrowed
if the ratio is very high it indicates excessive borrowings and repayment problems in the
future
if the ratio is very low it indicates under utilisation of borrowings capacity

20. 0.6
0.5
0.4
0.3
debt equity ratios
0.2
0.1
0
2008
2009
2010
2011
2012
Debtors Turnover Ratio: this ratios means no of times the debtors are turned overi.e goods sold and
money collected from debtors. A higher ratio indicates quick sales and quick collection from the debtors.
6
5
4
3
debtors turnover ratios
2
1
0
2008
2009
2010
2011
2012

21. Earning per Share(EPS) : Net profit after tax-preference dividend/no of equity shares. This means
earning made during the year on each equity shares
45
40
35
30
25
EARNING PER SHARE
20
15
10
5
0
2008
2009
2010
2011
2012
Net Profit Ratio : It is given by net profit divided by sales.
•
•
•
This ratio shows relationship between net profit and net sales.
This ratios shows profitability of the business.
A higher ratio indicates higher profit and vice versa.
25.00%
20.00%
15.00%
NET PROFIT RATIO
10.00%
5.00%
0.00%
2008
2009
2010
2011
2012

22. Awards
Zensar Technologies felicitated with Emerging Business Applications Award for 2009 at the Oracle UK
Partner Awards in London.
Third consecutive CNBC award for Outstanding exporter of the year 2009 in IT, ITES & Electronics.[3][4][5]
Oracle UK Partner Award
Zensar felicitated by Special Jury Commendation Award by the then President of India, Dr. A.P.J. Kalam
for outstanding commitment and contribution to Nation Building through CSR efforts.
Zensar named as the Trailblazer of the Year 2006 by the NHRD for Best HR Practices.
Zensar awarded the ‘Corporate Governance Business for Social Responsibility Award’ for 2006 .
Acquisitions and Joint Ventures
Acquired ThoughDigital for US $ 24.9 million in 2007.
Joint venture with a Tokyo Based EZA to form Zensar Advanced Technologies.
Acquired Hyderabad based OBT global in 2005.
Acquired Akibia Inc. worth $100 Million.
Partnerships and Alliances
Zensar and SOA Software announce Global Strategic Partnership in 2007
IBM - Zensar has entered into a partnership with IBM Partner World to leverage the growing E-business
market
Zensar Technologies is a Microsoft Gold Certified Partner
Zensar is a channel and service partner of SAP
Zensar technologies is a worldwide recognized Oracle partner
The Markets :
CHina, India, Middle East, SAARC countries
Market Dynamics
- Large and young populations and vast resource bases
- Transitional societies making drastic economic and political reforms
- Among the world’s fastest growing economies
- Transition from dependency to global interdependency with two way trade
and capital flows
Opportunities
- New and growing domestic markets
- New sources of talent
- High IT Adoption and investment in Infrastructure
- Strong Govt promotion and support
Expectations
– Accelerate growth of IM business in US and Europe
– Expand presence in current accounts
– Implement seamless multi-shore delivery model
– Streamline process to respond to larger opportunities
Expectations

23. • Accelerate growth of IM business outside of US and Europe
• Implement go-to-market strategy in core geographies
• Gain acceptance in market as Global IM solutions provider
Develop Solutions for Target Vertical markets
• Develop IM solutions to complement Zensar Vertical strategy
• Build domain expertise to market & deliver these solutions
• Team with Vertical Heads to integrate the IM solutions into there
Messaging
Evolving as end to end IT infrastructure
outsourcing company
–Capable to offer a single SLA to CIO for
the entire DC operation
• Which includes Networks, Systems, Applications,
Compliance, and Risk
Strategies for CHIMPS
Application Management

25. Key us Metrics
 Strengths
Key Focus Metrics
• Employee Engagement
• Retention of critical talent
• Employee satisfaction
Broad basing the organization and scaling up people capabilities
• Building and retaining leadership
• Strengthening the quality of middle managers
• Enhancing Employee Engagement
 Weakness
Company Focus
• Customer Focused Business Processes
• Best in Class Performance Measures
• Right People for the Right Roles
• Highest Quality at Lowest Prices
• Best in Class Information Technology
• Knowledge Management as a differentiator!

26.  Threats
Top 5 Competitor:





Cognizant
Tata Constancy Services
IBM (Daksh)
iGATE Patni
Infosys
 Using Strengths Steps to get explore opportunities
Steps Taken for transformation

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











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Reduce Cost
intranet application for employee self-service
on-line sales-force support
Improve Processes
on-line customer support
e-procurement
Redefine Processes
vendor-managed inventory
strategic sourcing initiatives
sell product through e-channels
Redefine Business Models
sell (rather than give away) service
outsource production
Create Markets
become a market maker/e-channel / infomediary
leverage intangible assets
Bibliography
Books :
Management Accounts: Anapure
Website:
 Zensar.com
http://www.zensar.com/about-us/corporate-profile
http://www.zensar.com/zensar-media/inthenews/399-zensar-profit
 rpggroup.com
http://www.rpggroup.com/
 Wikipedia.org
http://en.wikipedia.org/wiki/Zensar_Technologies
thehindubusinessline.in
http://www.thehindubusinessline.in/2005/12/14/stories/2005121402250400.htm

27. http://www.thehindubusinessline.com/todays-paper/tp-info-tech/article1048574.ece?ref=archive
 siliconindia.com
http://www.siliconindia.com/shownews/Zensar_acquires_OBT_Global-nid-30229-cid-2.html
 bseindia.com
http://beta.bseindia.com/bseplus/StockReach/StockQuote/Equity/Zensar%20Technologies%20Ltd/ZENSAR
/504067/ITConsultingSoftware
 indiatimes.com
http://timesofindia.indiatimes.com/tech/techhome/5880659.cms
equitybulls.com/
http://www.equitybulls.com/admin/news2006/news_det.asp?id=83876


icicidirect.com
cnbc.com