RS Software - Huge Opportunity Ahead

R S Software - Pioneering & Targeting High Growth Area Of Electronic Payments

RS Software (India) Ltd, a Kolkata-based software pioneer, has decided to focus completely on the electronic payments industry for future growth and revenues, according to Raj Jain, managing director. Software and service offerings to the global payment systems industry will be a major driver of revenue growth for R.S. Software (India) Ltd. The company has unveiled its plans for the industry. The total revenues generated by companies in the US payment systems industry in 2004 were $250 billion, said Raj Jain, Managing Director of R.S. Software (India) Ltd.

Addressing newspersons, Jain said the global payment systems industry comprised companies such as Visa, Master Card, Nova, Pay Pal and Western Union that facilitate the electronic transfer of money. R.S. Software has built up core competencies for the integration of technologies in global payment systems. "Our vision is to be the leader in providing quality software and services to leading payment systems companies globally," Jain said.

Towards this end, the company plans to augment the headcount at its Kolkata operations from 450 to 675-700 within the next one year. It also plans to add 60,000 sq. ft. of space at the Salt Lake Electronics Complex here, where it is already operating. Currently, 80 per cent of R.S. Software's revenues come from services and offerings to the payment systems industry.

“Moving forward, 100% of our growth is expected to come from the payments industry,” he said. To this end, RS Software aims to increase headcount and physical infrastructure at its Kolkata base.

On Friday, the company reported a profit after tax of Rs 1.38 crore on total income of Rs 22.44 crore for the quarter to December 31, 2005, against a net profit of Rs 6 lakh only on revenues of Rs 19.95 crore in the same quarter of the preceding year. Export income accounted for Rs 21.46 crore of the total income of Rs 22.44 crore during the quarter. For the year to March 31, 2005, RS Software had reported a loss of Rs 1.49 crore on revenues of Rs 78.29 crore.

Jain said that the global payments industry is worth $400 billion, of which the USA alone accounted for $250 billion in 2004. The figures refer to the business of all the parts that go into making the whole, while the total electronics payments globally add up to over $2 trillion. Jonathan Kalman, a US venture capitalist who has joined the board of RS and also invested some of his personal funds, said the payments industry is growing at a scorching pace. “My wife and I used to write around 600 cheques a year nowadays, we write less than 10 a year,” he said.

“We believe that this industry is going to become so huge that you are going to find almost everything becoming electronic payments,” said Kalman, who is also the founder, chairman and chief executive officer of Katalyst, and investment and advisory firm.

RS Software will also expand its physical infrastructure, taking up 60,000sqft of ready space in Salt Lake’s Sector V.

The company plans another rights issue, in the third week of March, to raise around Rs 16 crore. The decade from 2005 to 2015 will be the most exciting party, and RS Software is “committed to capitalise on the next phase,” Jain said.

R S Software, a leading software solutions provider in the Payment Systems domain. Ever since its inception in 1991, R S Software has been providing quality software services on time, using the onsite-offshore model to offer its customers enhanced returns on their IT investments. Relying on scalability, a knowledge base that has been nurtured for over 12 years and stringent execution standards, RS primarily focuses on the Payment Solutions space covering the entire range from POS to transaction processing, to make one-stop payment processing a reality for our clients.

R S also have substantive expertise in the areas of Embedded & Hi-tech Systems while our technology bandwidth spans across mainframes, mid-range, client-server, systems software, web technologies and ERP. Our clients include high profile global players in the Payment Cards industry, Insurance, Manufacturing and in the Retail/Logistics sector.

To meet the business needs of the Payment Processing environment, RS offers a gamut of services that include Transaction Processing, Dispute Resolution, Risk Mitigation and Data Analytics. In the hi-tech space, RS is creating Biometric offerings for securing financial transactions through fingerprint identification, and is also working towards developing frameworks that include multi-modal biometrics for solutions in areas requiring high degree of security.

Operating out of the Salt Lake Electronics Complex in the eastern Indian city of Kolkata and having offices in UK and US, RS is amongst the first companies to receive the ISO 9001: 2000 certification and CMM Level 4 and P-CMM level 3 assessments in the year 2000. It is also one of the first companies to bring the IBM Mainframe architecture to India in1991 and the fiftieth company to receive the BS7799 Certification in 2005.