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Patni Computer Systems

Patni Computer Systems Limited was an specializing in services, consulting, and solutions, founded on February 10, 1978, in by brothers Narendra, Ashok, and Gajendra Patni. The company pioneered the offshore model by establishing a backend in to support outsourced services in the United States during the 1970s and 1980s, setting a template later adopted by global giants like and . Headquartered in with its North American base in , Patni expanded rapidly to offer services including application development, maintenance, packaged software implementation, infrastructure management, , and across industries such as , , , and telecommunications. By 2011, it employed approximately 16,556 people across 23 global offices and served 282 customers, generating annual revenues of $779.6 million and profits of $51.5 million. Notably, Patni played a formative role in India's IT sector by employing early leaders like , , and , who later founded . In January 2011, U.S.-based acquired a 63% stake in Patni for $1.2 billion, forming iGate Patni and creating a combined entity with nearly $1 billion in revenues. The Patni brand was phased out in 2012 amid challenges in protecting the family name globally, leading to full rebranding as and delisting from Indian stock exchanges. In 2015, acquired for $4.04 billion, integrating Patni's operations into its global portfolio, where the legacy continues under Capgemini's technology services division in .

History

Founding and early development

Patni Computer Systems was founded on February 10, 1978, in , , by Narendra Patni along with his brothers Ashok Patni and Gajendra Kumar Patni, initially as a provider of and processing services targeted at U.S. clients. The company's origins trace back to 1972, when Narendra Patni and his wife Poonam began operations from their apartment in , establishing early ties to the market before formalizing the entity in . This setup positioned Patni as an early pioneer in IT offshoring, with initial headquarters in and a North American base in to streamline access to U.S. opportunities. In its startup phase, the company focused on manual services, which quickly evolved into computerized as advanced, leveraging low-cost labor for firms seeking . The Patni brothers played key operational roles: Narendra oversaw strategic direction, while Ashok and Gajendra handled technical and management aspects, drawing on their backgrounds to build the foundational infrastructure. Early growth was modest, with operations expanding from a small team of about 20 in to broader service offerings, establishing Patni's reputation for reliable back-office support in the nascent global landscape. A pivotal milestone occurred in the late 1970s when Patni transitioned from pure data processing to services, marked by the 1978 appointment of to lead the new software division and secure initial contracts with American companies. This shift broadened the company's scope beyond data handling to custom software solutions, solidifying its role as an innovator in India's emerging IT sector during the decade. By the late 1980s, revenues remained under $10 million annually, reflecting steady but constrained expansion amid the industry's formative years.

Expansion and public listing

During the early 2000s, Patni Computer Systems experienced rapid financial expansion, with revenues increasing from $142.6 million in 2001 to $326.6 million in 2004, reflecting a of 31.8%. This growth was driven by strengthened client relationships in key sectors such as and , alongside operational efficiencies in its offshore delivery model. Net income also rose substantially during this period, from $25.1 million in 2001 to $56.7 million in 2004, achieving a of 31.2% and maintaining healthy profitability margins above 17%. A pivotal milestone came in February 2004 with Patni's on the and National Stock Exchange, which was oversubscribed 22 times and raised approximately $95 million to fund further infrastructure and global expansion. Under the of Narendra K. Patni as Chairman and CEO, the company strategically shifted emphasis toward high-margin services, including application and , which became core offerings alongside application development and packaged software . This focus helped sustain profitability, with continuing to climb into the mid-2000s, reaching $60.9 million in 2005 before growing to $79.2 million in 2006. Patni also broadened its market presence beyond the United States in the early 2000s, entering and regions through new sales offices, which increased non-U.S. revenue share to approximately 11.2% ($16.6 million) of total revenues in 2003. By the late 2000s, these efforts contributed to annual revenues surpassing $500 million—reaching $578.9 million in 2006 and $718.9 million in 2008—while the employee count exceeded 10,000, growing to 11,237 by September 2005 and supporting operations across 24 global locations.

Acquisition and integration into larger entities

In January 2011, announced its agreement to acquire a in Patni Computer Systems from founders Narendra Patni, Gajendra Patni, and other family members, along with , for approximately $1.22 billion, including a mandatory open offer to public shareholders. The deal, valued at about 503.50 rupees per share, gave control of around 63% of Patni initially, marking a significant consolidation in the IT services sector. The acquisition was completed in May 2011, with securing an 83% stake, leading to Patni's delisting from stock exchanges in May 2012 and full integration into the combined entity, initially branded as Patni. By mid-2012, further rebranded by dropping "Patni" from its name, streamlining operations and workforce integration across global delivery centers while phasing out the standalone Patni identity. This merger enhanced 's scale in IT consulting and , incorporating Patni's expertise into its Digital360 model. In April 2015, announced its acquisition of for an equity value of $4.0 billion in cash, completed in July 2015, which absorbed Patni's operations into 's broader portfolio of technology services and consulting. The integration expanded 's North American presence and capabilities, with Patni's legacy teams contributing to application development and , though the Patni brand fully faded by the mid-2010s amid unified efforts. Narendra Patni's death from in on June 3, 2014, further distanced the founding family from ongoing operations, as their stakes had already been divested in the iGATE deal, limiting any residual involvement. As of 2025, Patni Computer Systems has no independent operations, having been fully merged into Capgemini entities such as Capgemini Technology Services Limited, yet its early innovations continue to influence modern practices in the IT industry.

Business Operations

Core services and solutions

Patni Computer Systems provided a range of IT services centered on application development, maintenance, testing, and re-engineering, tailored to industries such as , , and healthcare (including life sciences). These offerings encompassed creation, ongoing support for existing systems, through testing protocols, and modernization efforts to update outdated applications for improved efficiency and . The company served diverse sectors, with significant revenue contributions from (32.8% in 2004), (28.3%), and (19.2%), alongside , , and . In addition to core IT services, Patni offered business solutions like (ERP) implementation, (CRM) systems, and (BPO) to streamline client operations. Packaged software deployment focused on integrating solutions from major vendors to support enterprise-wide processes, while BPO handled non-core functions such as and . The firm specialized in product for original equipment manufacturers (OEMs), providing end-to-end services from conceptualization and prototyping to design, verification, validation, and maintenance, particularly in for automotive clients. This unit grew rapidly, contributing 7.1% of revenues in the July-September 2005 quarter and targeting over 10% by year-end. Legacy system modernization was another key domain, exemplified by the LegacyX framework, which offered insurers a structured for assessing IT states, applying reference architectures with and standards, and aligning upgrades with business strategies to minimize risks. Patni pioneered offshore delivery models, leveraging India-based centers for cost-effective, 24/7 operations while maintaining onsite support globally. Patni's revenue model evolved from predominantly time-and-materials contracts to include fixed-price agreements (42.6% of revenues in 2004) and commitments, emphasizing predictable deliverables. Post its 2011 acquisition by , the company shifted toward outcome-based contracts, aiming for 30% of revenues from this model by 2017 to align pricing with business results rather than inputs. Technologically, Patni demonstrated expertise in mainframe environments using and for development and support, alongside modern platforms, enabling robust solutions across client needs. The firm held SEI-CMMI Level 5 certification enterprise-wide, the highest maturity level for process improvement, underscoring its commitment to quality and reliability. Its client-centric approach featured long-term contracts with companies like and , with top 10 clients accounting for 69% of 2004 revenues and approximately 80-90% of overall revenue derived from pre-2011 (87.8% in 2004).

Global presence and workforce

Patni Computer Systems established its global footprint through a network of sales offices and delivery centers, with corporate headquarters in Mumbai, India, and North American headquarters in Cambridge, Massachusetts. By the late 2000s, the company operated 22 international offices across the Americas, Europe, and Asia-Pacific, including key locations in the UK (Middlesex) and Germany (Frankfurt), alongside multiple delivery centers primarily in India. This structure supported its hybrid onsite-offshore delivery model, where the majority of operations—approximately 80% of the workforce—were based in low-cost Indian facilities to enable cost efficiencies, while onsite teams handled client proximity in regions like the US and Europe. The company's workforce expanded significantly from its founding in 1978 with a small team to over 15,000 employees by 2010, reaching 16,556 professionals by the time of its acquisition. Approximately 70-80% of these employees were located in , focusing on offshore and support roles. Patni emphasized employee through structured , programs, and retention strategies to address high attrition rates common in the IT sector, achieving rates of 19.4% in 2004 and 18.6% for the nine months ended September 30, 2005 via competency building and performance management initiatives. Revenue diversification reflected its international expansion, with approximately 80% derived from the market in the mid-2000s, diversifying to about 75% by as contributed around 15% and Asia-Pacific grew to 5.6%. Following 's acquisition of a majority stake in Patni in May 2011 for $1.2 billion, the workforce was largely absorbed into the combined entity, initially operating under the iGATE Patni brand, with some for redundant roles but preservation of key Patni teams to maintain operational continuity. This integration later extended to Capgemini's 2015 acquisition of iGATE, sustaining elements of Patni's legacy structure.

Acquisitions and Partnerships

Key acquisitions by Patni

Patni Computer Systems pursued a of selective acquisitions to bolster its domain expertise in high-growth sectors such as , product , and life sciences, primarily during the mid-2000s to strengthen its global delivery capabilities and client offerings. These deals focused on integrating specialized consulting and development firms, enabling Patni to expand its service portfolio without extensive organic buildup in niche areas. In June 2006, Patni acquired ZAiQ Technologies, a Woburn, Massachusetts-based ASIC design firm, for $425,000 through an asset purchase. This acquisition provided Patni with in , enhancing its product services in the hi-tech sector. A pivotal acquisition was that of Taratec Development Corp., a Bridgewater, New Jersey-based provider of integrated , IT, and services for the life sciences industry, completed in 2007 for $27.2 million in cash, including contingent payments. This move enhanced Patni's product and testing expertise, particularly in areas like drug safety, , and for pharmaceutical and biotech clients, while bolstering its U.S. presence through Taratec's established operations. The acquisition added over $20 million in annual revenues from Taratec's existing contracts and integrated approximately 50 employees specializing in life sciences consulting. In the same month, Patni acquired Logan-Orviss International, a Europe-based specialist in consulting and advisory services, through an upfront cash payment supplemented by performance-linked incentives over three years, with the exact value undisclosed. This private equity-backed deal expanded Patni's capabilities in network transformation, operational advisory, and IT strategy for and clients, establishing a dedicated consulting practice led by the firm's founders. It targeted niche services like compliance and testing for OEMs in the communications sector, contributing to Patni's global practice by adding specialized thought leadership and regional footprint. Earlier, in November 2004, Patni acquired Cymbal Corporation, a Fremont, California-based IT services provider focused on , for $68 million in cash, marking one of the largest outbound deals by an IT firm at the time. The transaction incorporated Cymbal's $32 million in revenues and over 500 employees and consultants across seven global delivery centers, enabling Patni to deepen its telecom engineering services and enter the U.S.-centric and markets. This acquisition significantly scaled Patni's workforce in product development and testing, supporting long-term growth in OEM partnerships. These acquisitions were successfully integrated into Patni's operations, enhancing its vertical-specific competencies and contributing to incremental revenue streams in and life sciences segments through expanded client engagements and service diversification.

OEM agreements and strategic collaborations

Patni Computer Systems forged key OEM ties with leading technology vendors such as , , and , enabling the company to deliver certified product engineering and implementation services. These agreements allowed Patni to establish Centers of Excellence for middleware integration and .NET technologies with and , facilitating advanced solution implementations for clients. Similarly, as a member of the Oracle Partner Network, Patni collaborated on developing products for supplier collaboration, enhancing its capabilities in deployment. In the telecom sector, Patni pursued specific collaborations, including a partnership with to develop next-generation systems for global and retail operations, incorporating and billing solutions. For the , Patni entered a with Activplant to provide performance management systems for manufacturers, focusing on efficient operational monitoring and through joint go-to-market strategies. These sector-specific partnerships supported co-development of tailored solutions, aligning Patni's expertise with industry needs. Patni also formed strategic alliances through memorandums of understanding and collaborative programs with Indian universities, notably a partnership with the Birla Institute of Technology and Science (BITS) Pilani for talent development and R&D. This initiative enabled Patni employees to pursue advanced degrees in software engineering and embedded systems, fostering a pipeline for expertise in emerging technologies like cloud computing via integrations such as Microsoft Azure. Pre-2011 efforts emphasized research in scalable IT solutions, contributing to innovation in product engineering. These OEM agreements and collaborations significantly impacted Patni's business, with product engineering services—bolstered by vendor partnerships—accounting for approximately 30% of revenue in the third quarter of 2010 and driving 19% year-over-year growth in that business unit. Such alliances enhanced Patni's credibility among enterprise clients by providing validated, high-quality implementations, differentiating it in competitive IT services markets. Post-2000s, Patni shifted toward outcome-based partnerships, moving from traditional time-and-materials models to value-driven alliances that emphasized measurable results and . This aligned with global IT trends, incorporating go-to-market strategies and co-developed offerings to support client transformations in dynamic sectors.

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