Ramco Systems Ltd and Boeing have mutually agreed to end their three-year exclusive selling contract for Ramco's aviation product, Enterprise One.
Under the alliance, while Boeing was responsible for marketing, sales and product specification, Ramco handled pre-sales support, product development, technology platform, implementation and product support.
RSL officials said the two companies will, however, continue to work on other projects and the decision to end the Enterprise One pact was for strategic reasons and does not reflect any product performance problem.
P R Venketrama Raja, vice-chairman and managing director, RSL said Boeing will compensate the company for the loss suffered owing to the early termination of the agreement. He, however, did not divulge the value of the compensation.
Raja said RSL had thus far earned $900,000 from the contract with Boeing and the demand for the aviation product was strong. The company has acquired seven customers in the aviation maintenance solutions sector, globally.
Raja further said the company through its annual appraisal programme retrenches the bottom 5 per cent of its employees, who do not fit into the organisation.
"Last month about 50 people were retrenched after annual appraisal and voluntary attrition would be in the region of 200 during the current year," he added.
