NCS Strategy Delivering Results
Singapore, July 2, 2003
National Computer Systems Pte Ltd (NCS), a wholly-owned subsidiary of SingTel, today announced that its strategy of growing business outside Singapore and with commercial customers is delivering results. For the twelve months to March 2003, 16% of revenues came from outside Singapore and 35% were from commercial customers. NCS' total revenue for the year ending March 2003 exceeded S$500 million for the first time. This strong performance is attributed to organic growth as well as acquisition of SingTel Aeradio (now known as NCS Communications Engineering) and a 51% holding in IPACS Computer Services. The IT & Engineering (IT&E) business is the fastest growing segment for the SingTel Group, and its fourth largest revenue contributor.
From 1996 to 2003, NCS has achieved a compounded annual revenue growth rate (CAGR) of 26%. Its international and commercial business has also grown. Today, the NCS Group of companies derives 16% of its revenue from overseas markets. It has expanded its regional coverage through subsidiaries such as IPACS Computer Services, Zhong Sheng Information Technology Co. Ltd (ZISCO) and its regional offices in Australia, Greater China, India and Malaysia. With this enlarged footprint, NCS is well poised to capitalize on opportunities in key markets such as China, Australia and ASEAN. NCS has a strong presence in China, which is expected to be the largest IT services market in the Asia-Pacific (excluding Japan) by 2007 (Source: IDC Asia/Pacific IT Services Analysis and Forecast, 2002-2007 Report)
NCS has progressively widened its customer base. 35% of its FY02/03 revenue as compared to 18% in FY98/99, is derived from commercial customers. NCS' customers span across multiple industries ranging from public administration and defence, education, financial services, healthcare, manufacturing and distribution all the way to transportation and logistics. Its top three verticals of public administration and defence, financial services and post and telecommunications, account for more than half of its revenue. NCS will continue to deliver consulting, systems integration and outsourcing services to meet the IT and engineering needs of customers.
Despite a challenging business environment - the technology slump, a slowdown in the economy and the tightening of IT budgets by many corporations; NCS has remained focused on delivering quality solutions and expanding its core capabilities to grow its business. Its major project wins in recent times include the "ICT-Utility-on-Tap" for JTC Corporation's Biopolis; Vehicle Registration and Licensing system for Singapore Land Transport Authority; e-government projects in education and healthcare for Hong Kong SAR; facility management services for SingTel Optus' fixed line billing system; financial applications for DBS Bank; outpatient administrative system for SingHealth; application management for Citibank as well as several selective IT outsourcing projects for Singapore government ministries and departments.
SingTel acquired NCS in 1997 to realise its vision of providing seamless, end-to-end telecommunications and IT services to its customers in Singapore and the region. NCS' acquisition of SingTel Aeradio last November further consolidated infocomm technology (ICT) capabilities and resources at the group level for economies of scale and to provide a broader suite of seamless end-to-end infocomm and engineering services. Both customers and SingTel Group are beginning reap the benefits of the synergy. Todate, SingTel and NCS have collaborated to provide quality telco and ICT solutions for customers such as Mitsubishi Electric (hosting and managed services), JTC ("ICT-Utility-on-Tap" at Biopolis) and the Singapore government (broadband government infrastructure). NCS also supports the SingTel Group's IT needs in Singapore and Australia.
Mr Lee Kwok Cheong, Chief Executive Officer of NCS said, "We have delivered on our strategies and are well-positioned for the future with our one-stop end-to-end IT and engineering solutions, dedication of our highly-skilled staff, strong partnership with our best-of-breed technology providers and the continued support of our customers. We will continue to provide price-competitive and quality solutions, improve customer service and adopt effective cost management measures to enhance stakeholder value." With the widely expected slowdown in the global economy and increasingly competitive environment, Mr Lee added, "We will maintain a cautious approach as we move ahead in these uncertain times."
Mr Lee Hsien Yang, Chairman of NCS and President and CEO of SingTel, commented, "NCS is a profitable business with a financial performance that benchmarks well compared to the global IT sector, and it generates excellent return on capital." He added, "IT and Engineering is a core and growing business for SingTel. The strong fundamentals - domain expertise, track record, quality solutions, reliability and customer intimacy; that NCS has built over the years will be critical moving forward. NCS has demonstrated that a Singapore home-grown IT company can thrive despite the constraints posed by a small Singapore market and challenging economic situation."
NCS Pte Ltd
DID: +65 6556 5629
NCS is a member of the Singtel Group and the leading information, communications and technology (ICT) service provider with presence in over 20 countries. NCS delivers end-to-end ICT solutions to help governments and enterprises realise business value through digital transformation and the innovative use of technology. Its unique delivery capabilities include consulting, applications development, systems integration, outsourcing, infrastructure management and portal solutions.