How RS Software stands at an inflection point in its existence
"If you want to build a ship, don''''t drum up the men To gather wood, divide the work and give orders, Instead, teach them to yearn for the vast and endless sea." Antoine de Saint-Exupery
Aspiration and vision impregnated with hope, structure and systems represent the pillars of the foundation of emerging digital payments world.
We believe that a fundamental measure of our success will be the shareholder value we create into the long-term. This value will be a direct result of our ability to strengthen our niche leadership. With more than two decades of experience in retail payments and the only company that has worked globally with the world''''s largest payment network for more than 20 years, RS Software enjoys a payment knowledge moat at the heart of its execution competence.
At RS Software, our goal is to unlock the value of what we already possess: the ability to see things differently, coupled with the heart to inspire our people, and achieve our vision of enabling friction-less payments for the emerging digital economy.
The opportunity to accelerate the building of payment infrastructure and transform legacy technologies to facilitate digital payments has never been higher. This is the reason why the global investor community is placing informed bets on this space.
This space represents a fundamental part of our strategy and our need to transition to a new business model across the next 24 months.
At RS Software, our purpose is to help enhance the economic circumstances of individuals, communities and countries through the transformative power of electronic payments.
We will make bold, rather than timid, investment decisions where we see a sufficient probability of gaining market leadership. We possess an attractive track record in bold decisions: in 1991, RS Software was the first company to bring IBM 390 technology to India, which emerged as the lead technology to build India''''s global IT services leadership. In 2004, RS Software emerged as the first company to focus exclusively on the electronic payments domain, which now holds the key to rapid sustainable growth.
Because we emphasize the long-term, we may make decisions and weigh trade-offs differently than some companies. The highest risk for our company was the revenue dominance of one client, which we eliminated during the financial year under review. We are now ready to leverage the evolutionary growth of the digital economy, bringing with it a revolution in the adoption of electronic payments. Accordingly, we share with you our strategic direction, so that you, our shareholders, may confirm that it is indeed consistent with your investment objective.
According to McKinsey, India''''s IT industry revenues six-folded between 2004 and 2014; RS Software achieved similar progress. The Indian IT industry is likely to grow from the present USD 130 billion to USD 350 billion in 10 years, which really represents the power of positive compression - a larger quantum of growth in a smaller period of time.
At RS Software, we are optimistic of mirroring this growth, especially in the light of our reinvented business model.
Payments industry in transition; RS Software building pathways to newer opportunities
From 1990 to 2015, electronic payments transitioned from a mere 16% of US personal consumer expenditure to 66% in 2015.
RS Software started working with payments in 1992 and participated in the building of the electronic payment infrastructure that helped the world''''s largest payment network enhance its capacity from authorizing 500 transactions per second in 1992 to 56,000 transactions per second today.
The Company''''s tried and tested business model continues to transform the way humanity transacts commerce, and is an integral part