April 3, 2000: MphasiS-BFL today announced a major reorganisation
that uniquely positions the Company as an "Interactive Architect
with Quality Capacity" for end-to-end e-Business solutions, by leveraging
the unique strengths of MphasiS' Interactive Architect capabilities,
and BFL's high quality back-end capabilities.
which is publicly listed on stock exchanges in India, has decided
to change its name to MphasiS-BFL, which will be the name of the
regulatory formalities involved in the "merger" of BFL and MphasiS
are expected to be completed in this quarter. The financial consolidation
is also expected then. "However for all practical purposes, we have
commenced operations as one integrated entity," said Chairman designate
Jaithirth (Jerry) Rao.
is positioned as an end-to-end solutions provider for e-Businesses.
Our work commences with Business Planning and goes all the way through
Business Architecture, Technology Architecture, Systems Design,
Systems Development, Deployment and Maintenance. We are experts
in ensuring that there is superb plumbing behind a website with
access to multiple systems (both legacy and new) in sub-seconds.
Internet/CRM technologies enable us to transform our clients' marketing
and service capabilities. The same Internet/CRM technologies create
a unique opportunity for established businesses to ensure a common
customer experience across multiple channels, not just the web.
Call Centers, Agents, Mobile Telephony, Wireless, Kiosks and Physical
Branches can all be woven into a seamless continuum. This is what
MphasiS-BFL is specially equipped to help its customers with.
solid reputation of MphasiS as Interactive Architects, combined
with the solid reputation of BFL as a very high Quality Offshore
Developer, is really synergistic and unique. We do not believe that
there is any company which spans the entire spectrum of the value
chain, and which at the same time has such high quality development
capacity through our Indian offshore arm. We are therefore in a
category by ourselves", said Mr. Rao.
of the wide-ranging reorganization, Mr. Rao announced the appointment
of three presidents reporting to Rao:
- R. Mohan who was Managing Director of BFL, has been appointed
President of the Development Division of MphasiS-BFL. All the seven
offshore development centers (located in Bangalore, Pune and Mumbai)
as well as the related on-site development staff will report to
Mohan. Mohan will be located at Bangalore in India's Silicon Plateau.
- Jeroen Tas who was CEO of MphasiS, has been appointed President
MphasiS-BFL -- North America. This remains the biggest and most
critical market for the Company. In addition to his geographic role,
Jeroen has been assigned the responsibility to develop, mentor and
nurture a community of e-architects who will constitute the core
strategic fulcrum around which MphasiS-BFL will build its e-solutions
business. Tas will be located in Santa Monica, California.
- Arthur Flew who was President of MphasiS has been appointed President
of MphasiS-BFL International. Flew's geographic responsibilities
will include Europe, Asia-Pacific and Latin America. In addition
to his geographic role, Flew will have the responsibility to ensure
that MphasiS-BFL maintains its position as a high quality supplier
of solutions that integrate traditional legacy environments with
the web-world. Flew will be spending a considerable amount of his
time over the next few months living and working out of Bangalore.
with the reorganization, the company has decided to "spin off" into
a separate subsidiary a portion of the Products Division of BFL.
The subsidiary will be headquartered in Sunnyvale, California and
will focus on a suite of products for net-based shopping malls.
Heading this spun-off subsidiary as its President and CEO will be
Sridharan Kothandaraman ("Sri") who was CEO of BFL. Sri said, "I
am very excited about this opportunity. Product companies need very
small, cohesive, dedicated teams with a lot of passion. I believe
we have the right ingredients in place".
the rationale behind the "spin off", Rao highlighted the importance
of separating the confusion that arises when a Product company resides
inside a Solutions company. "This enables the Product effort to
stand on its own and get the attention it deserves. While we will
share in the upsides of the company, it is our intention over time,
to find other investors and deconsolidate the subsidiary. This is
the first time that a Silicon Valley based product company is coupled
with a Bangalore-based development unit from inception. Sri is starting
out on a new and exciting path. We are sure that he will make us
proud. We wish him all the best", said Rao.
Product company will give options/ownership to its employees to
incentivize them. It is expected that approximately twenty people
will transfer to this subsidiary. The other members of the BFL product
group will become part of MphasiS-BFL's growing E-Solutions Business
verticals that MphasiS-BFL seeks to focus on are:
- The Financial Industry (Banking, Brokerage, Insurance)
- The Retail Industry
- Media and Telecommunications
- Technology Companies
- Logistics and Supply Chain management
other details of the reorganization following the merger, Rao added
"We are consolidating the finance function under BFL CFO K. Venkatesh.
The HR function of MphasiS-BFL worldwide will report in to Dr Sreenivas
Chakravarthy who heads BFL's HR group. We have created a new position
of Marketing Director for the company. Aditi Malik, who is EVP India
Business for MphasiS, will take this position".
up the positioning of the company, Rao said that "we want to distinguish
ourselves from other Interactive Architects who are bound to have
capacity problems as they try to scale up their business. We also
want to be sure that we can have as part of our target market, both
Dot.com companies and established firms. The latter need development
and deployment support across a range of systems as they complete
their own transformations. MphasiS-BFL is not constrained either
in its resource bandwidth or in its range of competencies. We are
also excited about the globality of our efforts. Its only partly
accidental that we have three Presidents of three different nationalities
(American, Indian and Dutch). Our customer base is more global than
other Interactive Architects. Our investor base is global. Our managerial
talent is global. We like to think of ourselves as special on this
count. The top twenty five managers of MphasiS-BFL held an offsite
meeting recently. We came up with a strategic vision and an operating
plan both of which leave us excited and energized. We are pretty
confident that we will pull off something unique and valuable to
all our stakeholders", Rao said.