"HPS is a Jewel in the Crown of Perot Systems"

David Cohen, Chief Financial Officer, Perot Systems Europe, a division of Perot Systems Corporation, joined the company in 1993. His responsibilities include international corporate development, which includes setting up alliances and joint ventures and acquiring operations throughout Europe and Asia. He is directly responsible for overseeing Perot Systems' relationship with HCL Perot Systems (HPS)--a 50:50 joint venture between Perot Systems and the HCL Group--which he helped found in 1996. Cohen who was recently in Delhi to take stock of the operations of HPS, spoke with the DQ Week Delhi about the joint venture's performance till date.

HPS is now into its fifth year of operation. Considering the objectives it was set up for, has it been able to achieve all of them?

HPS is a "Jewel in the Crown" of Perot Systems as described by the CEO of Perot Systems. The directors of HPS--Shiv Nadar and Ross Perot--and all of us in the leadership team are extremely proud of HPS, its people and their achievements in this short period of its existence. HPS has met the objectives and has in fact surpassed the targets and expectations that were laid down by the board.



What kind of development work does HPS do? Would you say that it is cutting-edge or run-of-the-mill?

HPS is in the business of providing IT solutions that are appropriate to the business needs of the customer. After careful evaluation of all parameters involved, the company could choose to provide a cutting edge technology solution, or a contemporary and proven technology solution or even a hybrid, the key is that they provide the appropriate technology that the client's business would need today, and for the window in future when this solution should remain relevant. I must add that HPS has earned over 40 percent of its revenues from projects in the area of cutting edge technologies this year. With the kind of technology focus, ramp-up capability, competence centers, technology cells and project incubators that HPS runs, conquering new technologies is not a concern at all, in fact this is one of its key strengths.



What is the agenda for the next five years for HPS?

HPS is now maturing to be a full-fledged independent operation in its own right. It has been successful in delivering some of the most complex and critical IT solutions in proven as well as new technology areas in many of Perot Systems' key accounts and some of its own accounts. The company's current story on quality and technology strengths is a great example of its ability to play a significant role in the market place in the coming years. We see--HPS as a leading player in the emerging technologies and the industry verticals they specialize in, we see HPS growing in terms of presence and geographies and we see HPS strengths in its people, leadership and partnership--all of which when put together would certainly make a company of great reputation and track record for years to come."



Is there any likelihood of a change in the equity structure of HPS?

The success of HPS in itself is a testimony for its appropriate equity structure, one would not disturb this but for very compelling reasons beyond anyone's control.



Will Perot Systems consider to turn HPS into a wholly-owned subsidiary if your JV partner wants to get out of it?

I would like to re-iterate my earlier answer once again.



Would Perot Systems set up more ventures in India--especially to address the domestic market?

HPS is already considering these possibilities and have also met with reasonable success in the domestic market.