Without Patni, there would have been no Infosys

Patni Computer Systems, a name intimately connected with the beginnings of India's software industry, faded away 34 years after it came into being. Patni was where NRNarayana Murthy and most of the other founders of Infosys met. On Monday, the man referred to as 'the other Murthy' oversaw the retirement of a brand which was the forerunner of outsourcing.

Phaneesh Murthy, the CEO of iGate Corporation and a former protege of Narayana Murthy, announced that the US-based company has dispensed with the Patni appendage.

iGate acquired Patni for $1.2 billion, or 6,400 crore. Shares of Patni Computer will be suspended from trading from May 21 and delisted from stock exchanges on May 28.

"I learnt a lot at PCS. It is sad to see its demise," said Narayana Murthy.

For those associated with Patni, retiring the brand signifies the end of an era where a new business model was created and the term 'offshoring' was coined. Besides being the petri dish that gave birth to India's second-largest software exporter, Patni also spawned an idea copied by the likes of IBM, Accenture, Capgemini and Atos, resulting in a multi-billion dollar IT offshoring industry.

Patni and TCS, India's oldest IT firm, started life around the same time in the 1970s. Narendra Patni, an MIT graduate, conceived the idea in a Boston apartment before setting up the company in Pune.

Pradip P Shah, the chairman of IndiaAsia Fund Advisors who was on the board of Patni for several years until it was sold to iGate, credited the company with an open culture that empowered employees.

"It was family-controlled but not run like family business. It was not just about money; Narendra Patni was educated, as were all the brothers," he said. Narendra Patni's brothers, Gajendra and Ashok, are both IIT alumni. Narayana Murthy described Ashok Patni as "one of the finest bosses anybody could have".

A long-time employee recalls how in the 1980s there were only a few Indian IT companies one could work for and one of them was Patni. "Offshoring was a disruptive model at that time, and there was sense of pride to be part of an Indian firm that was bringing about this change and in creating a global brand." Patni went on to list its shares on the New York Stock Exchange as part of its efforts to create a global brand.

Family name hard to protect
One of the reasons why iGate is retiring the brand is because it is a family name, which means any of the members of the founding family can set up a company with Patni in its name. There are no restrictions against using it and Narendra Patni already has an unlisted firm called Patni Technologies. Ashok Patni's son, Apoorva Patni, is also said to be keen on pursuing the software business.

"I have always articulated that Patni, being a family name, is difficult to protect in several of our markets. This brand change is in line with our vision of 'one company' that will follow the successful delisting offer process of Patni with the Indian stock exchanges," said Phaneesh Murthy.