Media: Pune -- 16th November, 2005
-- Persistent Systems, a leading Outsourced Software Product Development company, today announced the acquisition of ControlNet India, a 100% subsidiary of Campbell, CA based ControlNet Inc., for approximately US $ 2 Million (Rs. 9 crores). The acquisition provides Persistent Systems an excellent opportunity to venture into high growth space of Embedded Systems and Application Specific Integrated Circuit (ASIC) Design.
Speaking on the occasion Dr. Anand Deshpande, Chairman and Managing Director, Persistent Systems said, “The acquisition is part of our carefully crafted expansion strategy that enables us to enhance our business and technology expertise. Gaining expertise in embedded systems serves as a value adjunct to our product lifecycle and development services, especially in the Telecom & Datacom domains, which are key drivers in Persistent’s expansion plans.”
Through this acquisition, Persistent Systems is in a position to tap the embedded systems market, which is one of the key drivers of Indian R&D offshoring and is currently pegged at around US$ 25 billion globally, growing at a 16% compound annual growth rate (CAGR). A NASSCOM-Mckinsey study states that the domestic embedded systems market for India is geared to generate U.S. $9.5 billion and exports worth U.S. $ 10 billion by the year 2008.
“ControlNet will also serve as our Competency Center for Embedded systems and ASIC Design”, adds Dr. Deshpande.
With its India operations headquartered in Goa, ControlNet India specializes in Network Protocols, Security, Voice-Data Collaboration & Convergence with capabilities in ASIC Design, Software development, Embedded systems and Product Engineering. ControlNet’s experienced team of hundred plus engineers, will now be part of Persistent's highly skilled team of 2,200 plus software professionals.
Supplementing further Dr. Deshpande said, “The acquisition has also enabled Persistent to expand its infrastructure, increase team strength and create a base in new geographical location like Goa which is an emerging IT hub. Good infrastructure, skilled manpower and low attrition rate are making Goa an attractive IT location.”
Commenting on ControlNet’s ASIC Design expertise, Dr. Deshpande believes, “Chips are increasingly getting loaded with software and this is where India's $17 billion software industry has a definite edge. Persistent intends to leverage this.”
The chip design market is seen as a sunrise sector within the Indian R&D outsourcing domain and according to analysts it is estimated to grow into a US$ 808 million opportunity in India by the end of 2005.About Persistent Systems
Persistent Systems (www.persistentsys.com
) pioneered the offshore centric software product development model fifteen years ago, and has since established an impeccable delivery record with over 140 satisfied customers worldwide.
Persistent is one of the few companies that focuses exclusively on Software Product Development and over the years has developed processes and capabilities to service customers ranging from Fortune 500 companies to companies that are in the start-up phase.
Today, Persistent is recognized as a leader in Outsourced Product Development, offering the most comprehensive range of services—from Concept and Development to Support and Maintenance—with a view to help its customers increase efficiency, shrink time to market, reduce costs and leverage cutting edge skills. Persistent has been ranked as the 11th fastest growing Indian company in the Technology Fast 500 Asia Pacific 2004 report of Deloitte and has been classified as an “Inventor” by Forrester Research.About ControlNet
Now, a Wholly Owned Subsidiary of Persistent Systems, ControlNet was established in 1998 as a Technology Development Center providing product-engineering services in the Networking, ASIC Design and Embedded Systems space. With a definite edge in ASIC design, hardware design, software development and product engineering, ControlNet has over the years developed capabilities to translate this expertise into a comprehensive product development asset.
ControlNet is a Center of Excellence offering technological solutions in the areas of
* Networking Software
* ASIC (Application Specific Integrated Circuit) design
* Embedded Systems
With strategic focus on Performance, Accuracy, Cost-effectiveness and Timeliness, ControlNet India offers end-to-end product development assistance for clients worldwide.