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Bangalore-based
Apex Technologies, an insurance software solutions provider,
plans to grow by 100 percent in 2002 and earn Rs 26 crore
in revenues this year. The company is also looking at strategic
alliances whereby it will off-load some of its equity for
expansion plans. “We are now positioned to grow exponentially.
Equity partnerships and joint ventures are lucrative growth
models for us,” says Arvind Tiwary, CEO, Apex Technologies
India.
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According
to TIWARY, forming strategic alliances with companies
in various geographies is the way to go |
Apex
has 7-8 customers in India, including Kotak Mahindra, RSA
and HDFC-Standard Life. The Indian market accounts for 10
percent of the company’s revenues. It has chalked out
plans to tap the markets of Japan, Europe and A-PAC. “We
are already talking to a few customers in A-PAC and Europe.
Japan, Europe and A-PAC will account for 30, 10 and 50 percent
of our revenues respectively in 2002,” Tiwary says. In
Japan, the company has roped in AXA, Ace and Mitsui Marine.
India being a price sensitive market, the company offers it’s
packaged solution on a revenue-sharing model wherein it shares
0.8-2.5 percent of a client’s revenues. “The revenue
sharing model is determined by two factors, one being the
version of the product and the other the commitment fee paid
upfront by the client,” says Ankur Singh, senior manager-business
development, Apex. The commitment fee is usually in the range
of $100,000. “If the commitment fee is on the higher
side, our share in the client’s revenues will be lower,”
adds Singh.
Some of the Indian services companies have recently forayed
into the insurance software segment, but Tiwary believes that
Apex has got an edge over them. “Our domain expertise
is our strongpoint. Around 60 percent of our employees have
more than five years of experience in insurance and IT.”
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