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Patni resembles more the mid-rung companies than the leaders, in most metrics. Whether you take the growth rate (at 26%, it is far lower than most top companies), the size of contracts won, or the predictability of net profits.

But if you go beyond the big numbers, there hides the big story. Unlike many other tier-2 companies, Patnis differentiation strategy is actually succeeding extremely well.

Patnis ace is product engineering, which it treats as a vertical. When the company identified engineering services as the big area, it was not the hottest thing in town. But with growth accelerating in product engineering (more than 100% in 2006-07), Patni has reaped the benefits. In calender 2006, for which exact break-ups are available, it contributed 14.2% to Patnis service line, up from just 6.5% the previous year. In JFM 07, it has further accelerated to 16.8%. Part of the growth is because of its acquisition of Massachusetts, US-based ZAiQ Technologies, an electronics design firm. The focus won Patni the NeoIT-Global Services Best Engineering Services Company Award in 2007.

Besides product engineering, however, it is more of business as usual for Patni, with a few good contracts including one from Disney Mobile. It added 92 new clients and broadened the services offerings.

Patni got negative publicity as the media reported a rift among the Patni brothers, with some of them wanting to sell their stake. DQ

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