In a year when almost every other BPO player was extolling the virtues of inorganic growth, Datamatics Technologies stood out as an aberration; the acquisitions of CorPay and Saztec in the US and the JV with Cadmus made during 2004 came back to haunt the company in FY '06. Datamatics picked up loss-making propositions  because they were cheap and also found it difficult to culturally integrate them. One of CorPay's largest clients got acquired and stopped outsourcing. And then there was the anti-outsourcing backlash in the US; the mistimed IPO; and the heavy investments made on sales offices in the US, UK and Germany. Datamatics was in the doldrums. The road to recovery was paved by means of pruning out smaller unprofitable customers and preparing a better equitable distribution of clients.

• Divested its 20% stake in KnowledgeWorks following the completion of the BOT arrangement
• 30% attrition rate especially in the middle management level was a cause for concern as Datamatics needs domain experts

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CEO: Manish Modi

l Start-up Year: 1991 l Employees: 1,125 l Facilities: 7 l Business Mix: Non-voice (100%) l Address: Knowledge Center, Street No. 17, MIDC, Andheri (E), Mumbai 400093 l Tel: 56971177 l Fax: 28343669 l Website: www.datamaticstech.com

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