iGATE Cuts Quarterly Reporting from Two Months to 14 Days, Trims Yearly Training Costs by US$42,000
 
 

iGATE Cuts Quarterly Reporting from Two Months to 14 Days, Trims Yearly Training Costs by US$42,000

  • Oracle Customer:  iGATE
    Location:  Bangalore, India
    Industry:  Professional Services
    Employees:  27,554
    Annual Revenue:  $1 to $5 Billion

Headquartered in Fremont, California, and Bangalore, India, iGATE is a leading telecommunications, consulting, and business-process outsourcing company. Founded in 1996, the organization has 27,554 employees and supports more than 300 clients, globally, including several Fortune 1000 businesses. In 2012, it recorded revenues of US$1.1 billion. 

iGATE provides customers with project consulting and outsourcing services, such as application development and management, enterprise application solutions, infrastructure management, and business and technology consulting. The company operates Indian development and training centers in Bangalore, Chennai, Gandhinagar, Hyderabad, Mumbai, Noida, and Pune.

In 2011, iGATE implemented a new enterprise resource planning (ERP) system, based on Oracle’s PeopleSoft applications, to run critical human resources (HR), financial, and procurement tasks. The company has improved the accuracy of its customer billing by 30%, enhanced management decision-making by cutting quarter-end reporting times from two months to 14 days, maintained 99% accuracy of its employee records, controlled project budgets and costs, and reduced training costs by US$42,000 per annum.

 
Implementing an ERP System

A word from iGATE

  • “We chose PeopleSoft rather than SAP, as we believed the Oracle product would better handle the increase in business and end-users during our merger. We have reduced quarter-end reporting time from two months to 14 days, enabling our management team to make more efficient decisions about the areas we need to focus on to grow the business.” – Bhaskar Debiswas, Director, Information Systems, iGATE

Between 1996 and 2003, iGATE used Lotus Notes-based applications and basic Microsoft systems to manage critical HR management tasks. These systems required extensive manual data entry, and often contained outdated information because employees could not update their details directly.

Different iGATE offices were also using a variety of systems, including Tally Solutions business accounting software and Excel spreadsheets, to manage their finances. In 2003, the company replaced the Microsoft systems used to manage employee records and entitlements with PeopleSoft Human Capital Management 8.8. In 2004, iGATE implemented an integrated PeopleSoft ERP system, including PeopleSoft Financials 8.8.

“The PeopleSoft applications gave us a comprehensive financials system that managed our consultancy contracts and projects, accounts receivable, general ledger, billing and asset management, as well as an HR system that managed employee records and performance,” said Bhaskar Debiswas, director, information systems, iGATE.

“However, there had been a considerable evolution in available ERP systems, so in 2009 we decided to review the latest versions of products from PeopleSoft, SAP, and Microsoft Dynamics, as well as one or two open-source solution providers,” Debiswas said.

iGATE initially decided on an SAP ERP system, but in January 2011 the company acquired Patni Computer Systems, expanding from a midsize outsourcing business to a top-tier organization. The merger increased iGATE’s employee numbers from 8,000 to more than 24,000 and ensured it could compete with large rivals in the professional services market. iGATE needed a robust, scalable, and easy to install ERP platform that could handle the growth in business and the increase in end-user numbers. It quickly realized that PeopleSoft 9.0 would best meet these requirements.

 
Customer Billing 30% More Accurate

 
Quarterly Reporting Time Cut from Two Months to 14 Working Days

 
Achieved 99% Accuracy for Employee Details

 
Minimized Project Costs and Overruns

 
Training Costs Reduced by US$42,000 per Annum

 
 

 
 

Challenges

  • Provide a robust, integrated ERP system to support a growing business during a merger
  • Reduce the time to produce quarterly reports to improve management decision-making 
  • Ensure client invoices are accurate and prevent any problems with client and partner payments related to consultancy projects
  • Automate procurement processes and eliminate duplicate tasks as the merger progresses
  • Improve the accuracy of personal details for more than 27,000 employees
  • Control consulting and business project budgets and costs and limit overruns
  • Implement a cost-effective training method for employees at offices and client locations across India and overseas

Solutions

Oracle Product and Services

  • Improved management decision-making by cutting the time required to complete quarter-end financial reports from two months to 14 days
  • Increased the accuracy of employee data to 99% across multiple locations, by replacing time-consuming and error-prone data entry tasks with a self-service HR system, so staff can update personal details and apply for leave online
  • Improved accuracy of customer billing by 30%, by enabling staff to identify and correct any errors before the final invoice is prepared for consultancy projects
  • Reduced training costs by US$42,000 per annum and improved employees’ skills by introducing an e-learning system that can be accessed at any time and from anywhere
  • Minimized overrun and extra project costs—improving overall profitability and increasing the gross margin from 34.7% in Q2-2011 to 40.6% in Q4-2012—by effectively allocating resources to projects, depending on need or stage of progress
  • Increased cash flow by minimizing billing issues that could impede payment from partners and clients
  • Enhanced employee accountability by giving project managers insight into the contributions and costs each worker brings to a consultancy or outsourced project

Why Oracle

iGATE initially selected SAP to replace its legacy PeopleSoft ERP system. However, after merging with Patni Computer Systems, iGATE realized the complicated SAP implementation project was limiting its ability to quickly and easily integrate the two companies.

“When deploying SAP, we found that the technology was much more complex than PeopleSoft, and we were relying heavily on our internal team and external partner to carry out the implementation,” said Debiswas. “We did not want to implement a system that we knew very little about at the same time as completing the merger. We already knew and trusted PeopleSoft products and believed they could better handle the increase in data and end-users bought about by the merger. We also had skilled PeopleSoft resources in-house.”

In addition, Patni Computer Systems was also running an ERP system, based on PeopleSoft 9.0. This meant iGATE could simply upgrade the PeopleSoft 8.8 system in its existing operations and undertake some basic integration work to have an ERP system that spanned the merged business.

Implementation Process

In June 2011, iGATE started standardizing its business processes across the merged companies in preparation for the PeopleSoft 9.0 implementation.

To meet its deadline, the company received assistance from Oracle Consulting and Oracle Partner Citagus Software Pvt. Ltd. Three Oracle consultants helped develop project costing and explain the benefits of the PeopleSoft system to business users. 

The new PeopleSoft system went live on January 1, 2012.

Partner

Citagus played a significant role in helping iGATE to migrate data to the PeopleSoft system.

“We were very happy with Citagus’ work during the project—the team conducted the migration in an efficient, professional manner,” said Debiswas.