Financial Chronicle
Sasken Communication Technologies, the $142 million communication R&D outsourcing firm, is betting on its handset technology business to see it through this fiscal. The company is expecting the vertical to grow by 30-35 percent this year, on the back of increased technological spend by mobile phone companies worldwide.
Sasken provides component development, integration and verification and validation services to handset OEMs. Swaminathan Krishnan, chief marketing officer at Sasken, admitted that this year has been tough. “But the growing handset technology business will shore us up,” he said. “We expect roughly one-third of our revenues to come from this segment.”
The mobile handset market continues to be dominated by Nokia, Sony Ericsson, LG, Samsung and Motorola.
Handset manufacturers globally are looking to consolidate their suppliers and are transforming themselves from being just device manufacturers to providing customer content and services. The core phone software is being outsourced and companies like Sasken gain from it.
The company also expects its semi-conductor business to provide them 15-20 percent revenues this year. According to Sasken, the overall semi-conductor market is in significant churn and there has been a slowdown in sales for most vendors. As handset manufacturers move into applications, enterprise solutions and customer-oriented services, they are trying to reduce their R&D costs in embedded software.
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