Newgen Software is a leading global provider of Business Process Management (BPM), Enterprise Content Management (ECM), Customer Communication Management (CCM), Document Management System (DMS), Workflow and Process Automation software products and solutions. It is a market leader in India and other emerging economies. In India, the company works with almost all the top banks, insurance companies, BPOs and several government organizations and PSUs.
Background:
Newgen being a Product company from India, has the advantage of low implementation cost compare to other global product companies, most of which are based out of US or Western Europe, which have very high labour cost. Being very strong in verticals like BFS, with over 50% revenue coming from Banking and FIs vertical, the company has been able to improve the productivity of the domestic Banking industry significantly.
Growth:
The company is now replicating this model of growth globally. In last few years Newgen has spread its implementations across 50 + countries. This has resulted in two major achievements in the last couple of years.
1) The company is growing at over 30 % and making further inroads into the Indian market. It is expanding into multiple countries through its tried and tested verticalised offerings for verticals including Banks, Insurance firms, BPO’s, Healthcare Organizations, Government, Telecom Companies & Shared Service Centers. The company has bolstered its sales by working with satisfied customers across several geographies – eg: AZ in APAC, Europe and Americas, Unilever in 20+ Countries, Coke in 5 Countries etc. The company continues to innovate and introduces new product lines and delivery models. Some of the recent applications include its Cloud based offerings where it works with several large partners like HP, HCL, Amazon etc. Another application is ZapIn, the company’s revolutionary mobility offering. The company has recently introduced its FATCA compliance solution and offers solutions like Customer Communications Management, Loan Origination, Payment Systems etc. The company has a well established partner eco-system. It is now consolidating its SI network through its channels team. Its channel presence is being strengthened and in several smaller countries it operates through its partners. In the US, Newgen has grown by over 140%, in EMEA by almost 50% and continues to remain strong in the domestic market.
2) Newgen has increased its profitability by almost 500%. Through geographic growth, the company’s earnings in foreign exchange have increased substantially. Since it is an IPR based product company, when the size of the company grows, its costs do not grow proportionally, which has enabled it to increase its profitability. The Cost discipline is integrated into the company’s Corporate Governance practice
Financial Performance:
- Newgen is one of the fastest growing software product companies in India
- Newgen has strengthened its presence in the US market. It has deployed senior management staff, business development personnel and bolstered its sales team.
- The company’s EMEA division has witnessed a 33% growth in business YoY
- Newgen has strengthened its presence in the APAC region by setting up a fully owned subsidiary in Singapore last year
- The organization as a whole has performed exceedingly well considering the market conditions and competition from global heavyweights.
o Last 4 years: Net Revenue CAGR 24.4%
o Last 4 years: EBITDA CAGR 80%
o Revenue growth: 33%
o Profit increased by 120%
Newgen’s Quality Systems are certified against ISO 9001:2008 and Information Security Standard, ISO 27001:2005. Newgen has been assessed at CMMi Level3.
Future Plans:
As Newgen looks to the future, it wants to leverage advances in technology and offer more flexible delivery platforms, the company aims to attract more customers, offer superior solutions at various price points and make adoption of technology in India more inclusive. The company will leverage the Cloud and in-fact is among the earliest to provide cloud as a delivery model. As a result, the company has gained a head start and believes that this will be strong source of our growth in the future. Mobility is also being seen as a strong driver of growth and Newgen is developing new solutions and augmenting its current offerings in this segment. Newgen is moving aggressively in smaller markets of Africa, America, APAC and the Middle East by ramping up its sales and channel teams. These markets will provide a strong and stable revenue stream in the years ahead.