Solnet’s good results for the year to June are largely a reflection of a deal signed last year with Australian financial services giant Suncorp, which led Solnet to set up an Australian subsidiary, Verve.
Suncorp is undertaking a massive project to integrate technology it inherited through its acquisition of Promina. It’s expected to spend A$161 million by June 2010 and generate cost savings of A$325 million from the merged business.
Last week Solnet announced that its revenue for the year to the end of June increased 15% to $23 million. The privately held company does not announce after-tax results.
Last November it said it was establishing an Australian operation on the back of a major financial services deal with a large listed Australian company.
Solnet was a provider to Promina before the buy-out. Now, it is providing agile approaches to Suncorp’s business technology group. To date, this has included delivery of Suncorp’s Wealth Management’s Home Loan Project solution and the Retail Banking Business Partner Portal.
“This represents a very important step in the evolution of our business,” says Solnet managing director Mark Botherway. “Not only do we have an outstanding track record of real-world agile delivery but we have also proven that we can be very effective in exporting our services.”
The bulk of the delivery team is remote, residing in Auckland, and supported by Solnet staff onsite in Australia.
Suncorp Wealth Management business technology general manager Terry Gaze says the organisation has embraced agile principles and such projects show the remote approach can be successfully leveraged.
Referring to Solnet’s annual results, Botherway says profit has increased in line with revenue growth. The company, he says, is taking a cautious approach looking out. “I see the next 12 months as a consolidation period.”