TROY, Mich. - May 24, 2005 -- Syntel, Inc. (NASDAQ: SYNT), a global software applications outsourcing corporation, celebrates its 25th year in business today, as the landscape for Information Technology (IT) services has undergone tremendous evolution.
"In 1980, my wife and I started Syntel out of our apartment in Troy, Michigan with a $2,000 investment," said Bharat Desai, Syntel Chairman and CEO. "Obviously, the world of technology has seen tremendous changes over the past 25 years including the emergence of the Internet, cellular technology, low cost global telecommunications and massive computing power improvements. We are very proud that we've evolved Syntel right along with the changing environment."
For example, when Syntel was founded in 1980, these technological events were taking place:
Â· The Internet was in existence, but not in use by businesses or consumers, only by the U.S. Government and the Pentagon. The preferred means of communication were the office telephone (not cellular) and printed memos and letters. Even faxes weren't common.
Â· Today, over one billion people are online worldwide, with 187 million in the U.S. alone.
Â· FORTRAN 77 was introduced as a "sophisticated" computing language.
Â· The first 16-ounce cellular phone was still a few years away from commercial service. Carrying a price tag of $3,500, it would take until 1990 before there were one million subscribers in the U.S.
Â· Today, there are 180 million cell phone subscribers in the U.S. and 91% of companies use wireless communications.
Â· There were one million PCs in use in the U.S.
Â· Today, there are 224 million, according to the Computer Industry Almanac.
"Over the last 25 years, we've witnessed the evolution of information technology from a back-office, mainframe-driven function to one that is extremely critical to a corporation's success," said Desai. "Technology is now a key enabler to an organization's success and the Chief Information Officer -- a role that didn't exist in 1980 -- is now a key member of the executive team. From advanced data warehousing systems to spot and react to trends, and Customer Relationship Management to better understand and respond to customers' behaviors, to mission critical e-commerce web sites and complex server farms, the world of business today centers on the foundation of information technology."
Desai added, "Another trend that goes hand-in-hand with the explosion and maturity of technology is the globalization of the services economy. Much like the manufacturing sector, the services arena has become a worldwide marketplace. Again, Syntel has kept pace with the changing market place, providing the absolute best technology solutions, as fast as possible, at an attractive price point, through our globally networked technology development centers.
"It's mind boggling to think about, but our organization has had the wonderful opportunity to live and thrive through these massive business and cultural changes," concludes Desai.
Today, Syntel has more than 4,700 employees globally, operates nine Global Development Centers in the U.S. and India, and provides sophisticated IT services to some of the best brands in the world. Over 90 percent of the company's revenues come from solutions in the areas of Applications Outsourcing, Business Process Outsourcing (BPO), and e-Business. The Company has a strong balance sheet with no debt, over $110 million in cash, and has reported a profit each year of its existence. Syntel's top customers include American Express, DaimlerChrysler, Target, and Humana, among others.
The company is launching a series of commemorative activities that will carry on through the year, including employee celebrations and trivia events, as well as the planting of trees in the name of each Syntel client at the company's new 40-acre Technology Campus in Pune, India.