Sonata Software bets on digital platforms for next phase of growth
Sonata Software is focusing on offering services through digital technology-based platforms to drive its next phase of growth. While the company has stepped up intellectual propertybased service delivery, it will also offer white-label licences so that clients can use it in their solutions.
The Bengaluru-headquartered company has acquired intellectual properties in travel, retail distribution and enterprise mobility areas in different parts of the US and created platforms.
The over ~1,800-crore (nine months ended FY17) informationtechnology (IT) services firm said it would call the digital technologybased business model "platformation". The company said it would offer flexibility to a business to use applications available commonly or build its own through these platforms, Sonata Ready, Sonata Accelerate and Sonata Custom.
P Srikar Reddy, managing director and chief executive officer, Sonata Software, said the company should maintain the growth momentum seen during past five years and "platformation" would be the key driver.
"It has been a turnaround for the company during the last five years. Initial steps were to consolidate, sustain, drive more growth with customers, get specialised services and we reached where we are. We are on that journey. If you want to take the next leap of growth, we need to do something different through this model of platformation," Reddy told Business Standard in an interview.
Sonata has bought intellectual properties to drive faster digital-technology transformation for its clients. "We will also give white-labelled source code licence on our platform and ultimately offer infinite scalability at finite cost to our clients. Allow them to take our intellectual property as a source code or one-time licence fee and then build on top of it," added Reddy.
The company reported nearly 30 per cent growth in revenues over last financial year. Even though the company earns a third of its revenue from global business, the international IT services account for 79 per cent of the company's ~113-crore net profit.