Intelligroup Inc. -  ERP Consultants -  Category Main Page 

(732) 590-1600

 499 Thornall Street

Edison, NJ 08837
www.intelligroup.com
 

Sales

$119 million

 
Business Description

Intelligroup Inc.'s is a leading ERP systems integration and outsourcing company.

The company's strategic IT outsourcing services address theimplementation, upgrade,

application management and development needs ofinformation technology executives.

Its proven methodologies and innovative tools allow customers to reduce costs by

accelerating implementations, upgrades anddevelopment.

Companies around the world turn to Intelligroup for high-quality
software development and support delivered at lower costs. Intelligroup created
the industry's first offshore lab dedicated to SAP development in 1995. Since
then, Intelligroup's India-based offshore services--coupled with its U.S. and
U.K. centers--have helped hundreds of clients develop, implement, maintain,
support and integrate ERP, e-commerce and m-commerce applications. Its
onsite/offshore model has been refined into a series of repeatable,
quality-embedded processes that continually enable it to:

o Significantly reduce clients' development time and costs;

o Deliver superior-quality developments and enhancements on
schedule;

o Ensure reliable service levels;

o Accommodate requirement changes and manage risks;

o Provide 24x7 seamless access to scalable, dedicated and
skilled professionals; and

o Meet the peaks and valleys of resource requirements.

Customers partner with Intelligroup in order to co-develop a product;
implement, extend and support existing applications; or create a dedicated
offshore center for their own development efforts.

Historically, the Company's services have ranged from providing
customers with a single consultant to multi-personnel full-scale projects. The
Company provides these services to its customers primarily on a time and
materials basis and pursuant to agreements that are terminable upon relatively
short notice. During 2000, the Company began to focus on providing management
and support services for their customers' applications. The contractual
arrangements in these situations are typically fixed term, fixed price and
multi-year, as is common in the outsourcing market. The Company's focus on
management and support services is also intended to encourage ongoing and
recurring service relationships, rather than one-time implementation
engagements.

Professional Consulting Services

The Company's professional consulting services ("PCS") utilize
technical and functional consultants to leverage the Company's expertise in ERP
architecture and systems integration, and to efficiently assimilate and
customize these applications with new e-commerce and m-commerce applications and
extensions. The Company believes that its expertise in a wide variety of
technologies, coupled with its ability to provide comprehensive business process
solutions and timely and cost-effective implementation of new business systems,
enables its customers to achieve substantial improvements in efficiency and
effectiveness in their businesses, and fosters long-term customer relationships.

Intelligroup has cultivated strong relationships with SAP, Oracle and
PeopleSoft. These companies have a vested interest in encouraging third party
professional consulting service companies, such as Intelligroup, to provide
implementation and customization services to customers. These software vendors
have established formal programs, which are designed to recruit and authorize
third party service companies as service partners. Companies wishing to become
authorized partners must meet performance criteria established by the respective
ERP vendor. They are then allowed to use the vendor's partner designation and
associated logo to promote their own services. The ERP product vendors also
promote these authorized partners to customers and prospective customers of
their ERP products. The Company believes that such partner status with the ERP
vendors has and will continue to result in enhanced industry recognition.

In 1995, the Company achieved the status of a "SAP National
Implementation Partner." In 1997, the Company enhanced its partnership status
with SAP, by first achieving "National Logo Partner" status and then
"AcceleratedSAP Partner" status. In July 1997, the Company was awarded
"PeopleSoft Implementation Partnership" status. In June 1998, the Company
expanded its Oracle applications implementation services practice and added
upgrade services to meet market demand of mid to large size companies that were
implementing or upgrading Oracle applications. In 2000, the Company achieved
"SAP Services Partner" status and "SAP Hosting Partner" for the pharmaceuticals
industry vertical status. In 2001, the Company's pharmaceutical template for the
small and medium-size businesses market (covering current Good Manufacturing
Processes ("cGMP") and validation standards) was certified by SAP America. In
2002, the Company was awarded the SAP Services Partner Award of Excellence.

As a result of the Company's experience in implementing ERP software,
the Company has developed a proprietary methodology and associated toolset for
implementing enterprise business software applications. The toolset also
contains a project management and tracking tool, which the Company utilizes to
monitor implementation projects undertaken for customers. The Company believes
that its methodology and toolset may enable its customers to realize significant
savings in time and resources. Furthermore, the Company believes that use of the
methodology and toolset also shortens the turn-around time for program
development, as it streamlines the information flow between the Company's
offices and customer sites.

Additionally, the Company has introduced certain SAP-based proprietary
tools, known as Power Up Services, that are designed to reduce the time and cost
of upgrading and maintaining SAP systems. Through its Power Up Services, the
Company helps to cost-effectively size and analyze SAP upgrade projects, as well
as to efficiently evaluate and test SAP Support Packages. The Company combines
the assessment capabilities of its proprietary Uptimizer(SM) Tool Kit with the
skills and expertise of its SAP-certified global implementation team to deliver
high-quality, cost-effective upgrades to customized SAP environments. HotPac
Analyzer(SM) enables customers to analyze and test the impact of a Support
Package on its own SAP production environment before the Support Package is
actually applied. In addition, HotPac Analyzer enables customers to validate the
overall impact that a Support Package can have and isolate and identify the
business transactions that require thorough testing.


In 2001, the Company developed Pharma Express and Contractor Express.
Pharma Express is a ready-to-run, fully integrated pharmaceutical solution that
enables pharmaceutical companies of all sizes to improve the efficiency of their
manufacturing process to effectively control the cost-of-production and
distribution while keeping the production environment cGMP-compliant. Pharma
Express incorporates SAP Best Practices for the highly regulated pharmaceutical
industry and seamlessly integrates order management, process manufacturing,
quality management, inventory and distribution and financials. Contractor
Express is a ready-to-run, fully integrated industry solution that enables
engineering and construction companies of all sizes to improve their operational
efficiency and to effectively control project schedules and manage the costs and
resources associated with construction projects. Contractor Express incorporates
SAP Best Practices for the engineering and construction industry and seamlessly
integrates order management, procurement, project systems, plant maintenance,
asset management, human resources, financials and project costing.

The Company's Advanced Development Center ("ADC"), located in
Hyderabad, India, allows the Company to provide cost-effective, timely and high
quality PCS services to customers throughout the world. The ADC delivers rapid,
24 by 7 development services, by utilizing its functional and technical
consultants, in conjunction with on-site consultants at customer locations, to
provide customers with savings in development and implementation costs and
expedited project completion. Intelligroup is able to deliver high value
services at attractive prices due to: (i) the high level of expertise and
experience of ADC consultant programmers; (ii) the rigorous application of the
Company's proprietary software project methodologies, tools and project
management disciplines; and (iii) the cost structures associated with the ADC's
offshore location.

The Company provides PCS services directly to end-user organizations,
or as a member of consulting teams assembled by other information
technology-consulting firms. The cumulative number of PCS customers billed by
the Company has grown substantially from 600 customers in 1999 to over 1000
customers in 2003. The Company's customers are primarily Fortune 1000 and other
large and mid-sized companies in the United States and abroad. They have
included Apple Vacations, Bristol-Myers Squibb, Coca Cola Enterprises,
Colgate-Palmolive, Detroit Public Schools, Eastman Chemical Company, ExxonMobil
Corporation, Putnam Investments, Siemens Medical Systems and Steelcase Inc. The
Company has also participated in project teams led by information technology
consulting firms such as Cap Gemini Ernst & Young and BearingPoint.

Application Management Services

Intelligroup's application management services ("AMS") provide the
resources, processes and tools needed for quality-driven user, technical and
operations support. Its experienced professionals use a well-defined set of
assessment, transition and long-term processes to deliver customized, affordable
and highly responsive support.

Companies around the world entrust Intelligroup to keep their complex
ERP and eCommerce environments and infrastructures stable and optimized, and
aligned with new business processes. Intelligroup delivers:

o Significant reduction in support costs;

o Predictable costs for easier budgeting;

o 24x7, on-demand access to skilled functional and technical
professionals through its Global Support Center and Advanced
Development Center in Hyderabad, India;

o Assured service levels and flexible, individualized support
programs;

o Dedicated teams that are on-site, offshore or a combination of
on-site and offshore, depending on client requirements; and

o Improved reliability, availability and performance of the
infrastructure, databases, operations, applications and
interfaces.

The Company's AMS services provide clients with management, support and
maintenance of their enterprise, e-commerce and m-commerce applications. These
services are provided using the Company's low cost, high quality onsite/offshore
delivery model, which allows the Company to aggressively compete for long term
fixed price/fixed time contracts.

Key to the Company's ability to deliver AMS services is its offshore
Global Support Center ("GSC"), located in Hyderabad, India, which helps to
provide responsive global support to customers through delivery teams that work
around-the-clock. The GSC keeps customers' critical applications, systems and
infrastructure stable, current and optimized through efficient and
cost-effective user, technical and operations support. Intelligroup is able to
deliver high value services at attractive prices due to: (i) the high level of
expertise and experience of GSC support professionals; and (ii) the cost
structures associated with the GSC's offshore location.

The Company provides its AMS services directly to end-user
organizations. The cumulative number of AMS customers billed by the Company has
grown substantially from three customers in 1999 to over 35 customers in 2003.
The Company's customers are primarily Fortune 1000 and other large and mid-sized
companies in the United States and abroad. They have included Dade Behring, GE
Fanuc Automation North America, Joy Mining Machinery and Pearsons Technology
Centre.

The Intelligroup Solution

The Company improves its clients' business performance through the
intelligent application of information technology. The Company delivers to its
clients timely, cost-effective and innovative professional consulting services
and application management and support solutions by combining its:

(1) Offshore Development and Maintenance Model: The Company has the
ability to develop, implement and maintain high-quality, low cost business
solutions through its offshore ADC and GSC. In May 2000, the ADC was awarded
Level 2 of the People Capability Maturity Model(R) by the Carnegie Mellon
Software Engineering Institute ("CMM-SEI"). The achievement recognizes the
Company for its ability to attract, develop, motivate, organize and retain the
talent needed to continuously improve its software development capability. The
Company was among the first in the IT industry to integrate CMM-SEI workforce
improvement with software process improvement, for which the Company has
achieved the Software CMM-SEI Level 5 certification for continuous improvement
of its software engineering. In addition, the Company is ISO 9001-certified for
software development, support and optimization.

The ADC and GSC (collectively "the Centers") are connected to the
Company's operations centers in the United States, Japan and Europe via
high-speed satellite links. The ADC and GSC operate on a 24x7 basis, allowing
next business day turn-around of work units to customers. The Centers' quality
processes, skilled development and support teams, and low cost of operation
allow the Company to aggressively compete for implementation and maintenance
contracts. As the Company expands, the ADC and GSC are prepared to undertake
projects in any of the three enterprise and e-commerce practices (SAP,
PeopleSoft and Oracle), as well as certain other advanced technologies,
including m-commerce.

(2) Expertise in a Wide Range of Technologies, Industries and
Disciplines: The Company's consultants have expertise with SAP, Oracle and
PeopleSoft products and with a wide variety of leading computing technologies,
including Internet, client/server architectures, object-oriented technologies,
CASE, distributed database management systems, mainframe connectivity, LAN/WAN
and telecommunications technologies. The Company believes that its consultants
are effective due to their technical excellence, their industry experience and
their strong grounding in the disciplines of project implementation and
management.

(3) Customer-Driven Approach: The Company's project managers and
consultants maintain ongoing communication and close interaction with customers
to ensure that customers are involved in all facets of a project and that the
solutions designed and implemented by the Company meet the customer's needs. The
Company's goal is to provide training to its customers during a project to
achieve high levels of self-sufficiency among its customers' end users and
internal information technology personnel. The Company believes that its ability
to deliver the requisite knowledge base to its customers is critical to
fostering long-term relationships with, and generating referrals from, existing
customers.

(4) Proprietary Methodologies: The Company has developed a proprietary
implementation methodology, as well as a software-based implementation toolset,
which are designed to minimize the time required to develop and implement SAP,
Oracle and PeopleSoft solutions for its customers.

(5) Proprietary Toolsets: The Company has developed proprietary SAP
toolsets that reduce the cost and time of keeping an SAP environment stable and
current. The Company's Power Up Services are designed to size and analyze an
upgrade project and evaluate and test SAP Support Packages.

Company History

The Company was incorporated in New Jersey in October 1987 under the
name Intellicorp, Inc. to provide systems integration and custom software
development services. The Company's name was changed to Intelligroup, Inc. in
July 1992. In March 1994, the Company acquired Oxford Systems Inc. ("Oxford").
On December 31, 1996, Oxford was merged into the Company and ceased to exist as
an independent entity. In October 1996, the Company consummated its initial
public offering of its Common Stock. The Company's executive offices are located
at 499 Thornall Street, Edison, New Jersey 08837 and its telephone number is
(732) 590-1600.

In 1994, the Company began to diversify its customer base by expanding
the scope of its systems integration and custom development services to include
Enterprise Resource Planning ("ERP") software. ERP software products are
pre-packaged solutions for a wide-range of business areas, including financial
information, manufacturing and human resources. For prospective customers, ERP
products are an alternative to the custom design and development of their own
applications. Although ERP products are pre-packaged solutions, there is a
significant amount of technical work involved in implementing them and tailoring
their use for a particular customer's needs.

Throughout the mid-to-late 1990s, the Company grew significantly by
capitalizing on the business opportunity to provide implementation and
customization services work to the expanding ERP market. The Company first began
to provide these technical services to customers implementing SAP software
before expanding its service offerings to include ERP products developed by
Oracle in 1995 and PeopleSoft in 1997.

In late 1999, the Company made the strategic decision to leverage its
traditional application integration and consulting experience and re-position
Intelligroup for future growth by focusing on the emerging Application Service
Provider ("ASP") market. At the same time, the Company made the strategic
decision to spin-off its Internet services business to its shareholders.
Accordingly, on January 1, 2000, the Company transferred its Internet
applications services and management consulting businesses to SeraNova, Inc.
("SeraNova"), a wholly-owned subsidiary of the Company on such date.

On July 5, 2000, the Company distributed all of the outstanding shares
of the common stock of SeraNova then held by the Company to holders of record of
the Company's common stock as of the close of business on May 12, 2000 (or to
their subsequent transferees) in accordance with the terms of a Distribution
Agreement dated as of January 1, 2000 between the Company and SeraNova.
Accordingly, the assets, liabilities and results of operations of SeraNova have
been reported as discontinued operations for all periods presented.

During the second half of 2000, finding that the market for ASP
services had not developed and grown as projected by market analysts, the
Company significantly reduced its investment in the ASP business model.
Expenditures for marketing and direct selling initiatives were significantly
decreased, as were the infrastructure and personnel that supported the Company's
ASP services. The Company renewed it focus and efforts on pursuing shorter-term
success opportunities of implementing and enhancing application solutions based
on SAP, Oracle and PeopleSoft products.

At the same time, the Company redirected some of its ASP infrastructure
and personnel towards the management and support of customers' enterprise,
e-commerce and m-commerce applications ("Application Management Services").
Additionally, the Company introduced certain SAP-based proprietary tools that
are designed to reduce the time and cost of upgrading and maintaining SAP
systems ("Power Up Services(SM)"). In 2001, the Company developed pre-configured
SAP solutions for the pharmaceutical industry ("Pharma Express(SM)") and the
engineering and construction industry ("Contractor Express(SM)"). Pharma
Express, a solution designed for small-to-medium sized life sciences companies,
improves manufacturing efficiencies and helps control the total cost of
production. Contractor Express assists companies in improving operational
efficiency and controlling manufacturing project schedules.

On April 2, 2003, the Company consummated the sale (the "Sale"),
effective as of March 1, 2003, of its Asia-Pacific group of subsidiary
companies, operating in Australia, New Zealand, Singapore, Hong Kong and
Indonesia (together, the "Former Subsidiaries"), to Soltius Global Solutions PTE
Ltd, a Singapore corporation ("Soltius"). As consideration, the Company received
a 5% minority shareholding in Soltius and a $650,000 note to be paid by Soltius
to the Company over a period of 12 months. The Company has received a total of
$350,000 from Soltius toward the note balance as of December 31, 2003. In March
2004, the Company agreed to renegotiate the payment terms with Soltius. The
revised terms call for Soltius to make monthly payments through September 2004
of between $25,000 and $50,000, plus a final $9,000 payment in October 2004.
 

Ticker

ITIG

SIC Code

7373 - Services-Computer Integrated Systems Design
 

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Intelligroup