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ATS Company Reports: Sonata
2. Company Details
Sonata Software Limited, together with its subsidiaries, operates as an information technology (IT)
consulting and services company in the United States, Europe, the Middle East, and the Asia-Pacific.
The company offers product engineering services, such as product management and engineering, product
support, product quality assurance services, captives, and progress migration, and embedded services,
including firmware development, protocol handler and stack implementation, development of tools and
utilities, soft emulators, system simulators, and configurators, applications for mobile and hand-held devices;
security solutions using biometrics and smart cards, verification and validation services, and product
maintenance for software product companies. It also provides enterprise IT services comprising application
management, managed testing, infrastructure management, and Web application services. Sonata Software
serves manufacturing, construction, telecom, and insurance.
The company was founded and headquartered in Bengaluru, India with additional offices in Bellevue,
Washington; Fremont, California, Princeton, New Jersey and North Harrow, United Kingdom.
The company has strategic alliance with Microsoft (Gold Certified Partner), SAP (Gold Partner), IBM
(Business Partner), Oracle (Platinum Partner) and HP (Platinum Business Partner).
The current market capitalization stands at Rs 1,394.94 crore. The company has reported a consolidated
sales of Rs 405.10 crore and a Net Profit of Rs 30.86 crore for the quarter ended Sep 2014.
4. Industry Details
The Indian IT industry has been primarily identified with software services and this focus has
relegated the software products segment to the background. However, off late, we are seeing
a change in the fortunes of this segment due to significant growth. Emerging technologies
such as Social media, Mobility, Analytics and Cloud (SMAC) are driving the growth in this
segment and helping it move to the next level.”
The report is a clear indicator that the emerging markets are poised to play an increasingly
pivotal role in the global software industry. Focus on innovation, growing talent pool and
government support are just some of the advantages of this market segment.
A number of software product firms have grown over the last decade from a little over 100 in
2000 to nearly 2400 in 2013. According to the industry body NASSCOM, the revenue from the
software product segment currently stands at 2.2 billion USD and is expected to reach 10
billion USD by 2020.
For the domestic market, however, Nasscom forecast slower-than-expected growth of 9-12%
at Rs.125-128 crore in 2014-15, mainly due to uncertainty on spending by the government.
The higher forecast for exports comes amid a recovery in macroeconomic conditions in North
America, which is the largest market for Indian software services exporters. Demand from
Europe, where companies have increased outsourcing to save costs amid a tough economic
environment, is also expected to boost the fortunes of Indian IT firms.