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Frank joined the board of Statedemocracy Foundation in 2007 as its Chairman. He helped the organization in developing cutting edge technology with hundreds of hours of volunteer service. He was also instrumental in having the Foundation develop two facebook applications for the social networking users to register to vote & request an absentee ballot. As a direct result of his ingenuity and technical know-how, over 80,000 people registered to vote online and 110,000 requested absentee ballot. |
An Interview with Frank Islam
We recently had the pleasure of interviewing TiE-DC Charter Member and Board Member Frank Islam. We found it enlightening and are sure you will to!
1 Now that you sold QSS, what’s next for you?
Right now, I am focusing on leveraging the capital I received from the sale of QSS in the investment world. Even though the market is volatile right now and the economy is looking a bit dismal, I believe there are some opportunities for a patient investor. I am taking a long-view on things and have developed some core investment strategies with my team that we have started to implement. For example, we have established some new funds that are focused on secure debt and on certain specialized asset-backed plays. I am enjoying this because I can use the business skills I developed through running QSS in evaluating prospective investments and making them stronger.
2. What are your thoughts on the economy?
It’s tough out there right now. I was lucky to have exited QSS when I did, but there’s a lot of people out there who are suffering because of tremendous greed on Wall Street, poor governmental oversight and bad judgment by many different groups I think that it’s going to be tough going for the next couple of years, but there’s no reason to panic because there will also be a lot of new opportunities to invest in or build new enterprises. This is a moment when entrepreneurs can really make a difference by demonstrating confidence in the underlying components of our economy and investing in developing or struggling businesses that continue to show potential in this difficult time. Patience is also necessary to get through this well.
3. What specific goals, including those related to your occupation, have you established for yourself?
In all things, my main goal is to enjoy what I do while doing things that have a positive impact on society. So, I approach everything from this standpoint. In business, I chose to build a business that I enjoyed. I surrounded myself with good people and never let the culture and tone of my company get diluted in the interest of making a few extra dollars or taking shortcuts. If people enjoy what they do and the people with whom they work – success is much more achievable. Similarly, when I see things that are not right with the world, I want to fix what I can. So I am involved in both politics and philanthropy – two major change agents. Through this, I hope to make a positive impact. I keep in mind that pursuing happiness is what even our founding fathers’ considered to be the ultimate goal. From a business perspective I always wanted to create a great company where people would be proud to work and that delivered excellent service to its customers. I think I accomplished that with QSS. Now I would like to provide support, both in capital and advice, to emerging companies trying to accomplish the same thing. . I also want to help people who don’t have the same opportunities that I have.
4. What did it take to attain your goals, and what steps did you take toward attaining them?
The most important thing in achieving your goals is to develop a well thought-out plan and stay focused on executing it. They say that the whole world steps aside for the man who knows where he is going. It’s easy to get distracted by the latest buzz, but if you keep a laser focus on what you are trying to accomplish, you will get there. So, for example, in creating QSS, like everything else, I created a plan and then stuck to it. I followed common-sense business practices and managed to not get sucked into the flavors of the day, like Dot-Com companies or some of the other technology oriented companies. When I say common sense, I mean that you need to ask yourself, “what does the customer want”, “how can I deliver it,” “how do I keep them happy” and “what is likely to be their next need.” Then, you have to budget carefully and plan for as many contingencies as you can. Same thing goes for other goals, though maybe the questions you ask are a little different and you are budgeting time and energy instead of money.
PREDICTIONS!
FI Investment Group CEO Frank Islam, who sold QSS last year for $255 million, gave us these tech predictions:
- Outsourcing will be closer to home; corporate governance and social responsibility will become a consideration in choosing outsourcing partners.
- The video game industry will be a bright spot for tech in 2009, with casual gaming companies and "indie" game publishing companies leading the pack.
- Companies will increasingly use distributed R&D models.
- Thin film solar technology will finally be able to produce energy at a cost of $1 per watt by the end of 2010.
Entrepreneur and Investor, Frank F. Islam, Speaks to Macklin Business Institute Students
Published at Nov 20 2008 12:00AM
Category: College/Campus News
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 Frank F. Islam, entrepreneur and investor, spoke to 22 Macklin Business Institute students during their regularly scheduled weekly afternoon seminar last Wednesday.
For the first half-hour, Mr. Islam spoke about what makes entrepreneurs special and the opportunities and challenges therein, specifically in the hi-tech area. He described entrepreneurs as passionate, creative, focused, and good leaders with a high risk tolerance. And, the risks are high. Venture capitalists fund only 1% of business plans they receive, and it takes 3-5 years for an IPO (Initial Public Offering) company to succeed. In fact, 60 percent of hi-tech companies funded by venture capitalists eventually go bankrupt.
One student asked Mr. Islam's opinion on federal regulation. He explained that he is a centrist in that he favors some regulation so as to avoid what is happening in our economy right now. But he warned that stifling regulation will smother new businesses and will not help create new jobs.
Another topic that Mr. Islam spoke of was his love of the United States. He immigrated to the U.S. when he was 10 years old, eventually attending the University of Colorado. He said that America's greatness stems from both its business opportunity and charity, or giving back to the community. There was some discussion about whether tax incentives drive the money he donates, and he explained that there is only a 15 percent tax benefit for money given away through his foundation. And, for him, giving back is a vital part of being American. In his native India, wealthy businesspeople do not invest in their communities to the same degree as in the U.S., and poverty is rampant as a result.
Islam is the Chairman/CEO of FI Investment Group, LLC (FIIG), an investment firm he founded in 2007 after the sale of his company, QSS Group, to Perot Systems. FIIG focuses on providing growth capital to emerging companies as well as managing specialized and branded funds. In 1999, Islam was recognized by Ernst and Young as Maryland Entrepreneur of the Year. The US Small Business Administration selected him as the Small Business Person of the Year of the Washington, DC Metropolitan Area in 2001.
Mr. Islam's private foundation, whose board members include his wife, Debbie Driesman, supports educational, cultural and artistic causes worldwide. Additionally, Mr. Islam sits on the board of the Strathmore Center for the Arts, TiE-DC and chairs the StateDemocracy Foundation. And he hosts a TV show called "Washington Current Review" on MHz Networks.
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QSS Founder; 1105 Gov't
After selling QSS for $250 million last year, Frank Islam tells us he's supposed to be retired, but as we found out earlier this week, he is anything but. He's running FI Investment Group, hosting a television show, and recently signed on as chairman of the State Democracy Foundation, a Bowie-based non-profit portal providing comprehensive voter registration information, online voting tools, and connecting citizens with national and state legislators. But will it connect us with Joe the Plumber?
Frank met State Democracy founder Shukoor Ahmed years ago when Shukoor was running for the Maryland House of Delegates. The two remained friends, and following Frank's "retirement," Shukoor approached him to become the new chair. "With the times we're in, it is imperative that people reach out to their leaders, and we give them the information they need to do so," Frank says, noting the site has increased traffic 400% in the past month.
Here at Frank's Tysons office, State Democracy executive director Ken Laureys tells us he didn't have to think hard about the new chairman: "Frank built a quarter of a billion dollar company, so who better to take our organization to the next level?" Even un-retired, Frank has still managed some travel. He's just back from a European vacation where he traced his wife's Dutch ancestry, finding her parent's original farm and church, which was the same one that Vincent Van Gogh's father once preached at. (Doesn't this story end with Tom Hanks fending off Opus Dei?) Frank also traveled to Barcelona and visited the building where Christopher Columbus met Queen Isabella upon returning from America.
State Democracy thrives on busy political times
Non-profit Web site links constituents with leaders
By Martin Desmarais |
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StateDemocracy.org, which was started in 2001, has brought on seasoned entrepreneur Frank Islam, above, as chairman and to lead expansion efforts. Photo courtesy of StateDemocracy |
MCLEAN, Va. – For most Indian Americans interested in politics the rallying cry is that not enough members of the community are politically involved and the main effort is to make this happen. However, Shukoor Ahmed and Frank Islam go one step further. They feel that not enough Americans are involved in the political process, specifically voting, and they are using StateDemocracy.org to try and change that.
The Web site connects citizens with their lawmakers and lawmakers-to-be, both at the state and federal levels – in all 50 states. The site’s LobbyDelegates service provides a way for people to find out who their lawmakers are and quickly contact them by e-mail, fax or letter. On the voting site, the site packages all that is necessary to vote in any state: voter registration, absentee ballot applications, polling place locator, links to every state and local election board and election-day requirements, such as voting hours, identification requirements and write-in rules.
Following the increasing social networking phenomenon of the Web, StateDemocracy is on Facebook, myspace and LinkedIn and has created widgets that allow people to access its voter tools on many other Web sites. Facebook offers StateDemocracy’s voter registration, absentee ballot and poll locator tools.
“What we are trying to do is get our voter engagement tools out to all the different Web sites where people are going,” said Ken Laureys, executive director of the StateDemocracy Foundation, which is set up to run and finance StateDemocracy.org.
According to Laureys, the excitement and interest in the Presidential election, combined with the increasing role of the Internet, makes it a perfect time for StateDemocracy and what it offers.
“This year it is really unprecedented in the numbers of new voters that are coming into the system,” he said. Still, he believes, there is a major problem of most citizens not knowing who their lawmakers are and how to continue a dialogue with them after elections, particularly on the state level. With the mass media firmly entrenched in covering national politics, Laureys said StateDemocracy can make headway on the local level.
“Here is where the Internet can do that segmentation and niche and have a role to play in informing people,” he said. “Once people start [looking into politics on a local level] they find out there is a lot of important things. … There are more things that are decided on the local level that affect you than on the national level.
“With technology you don’t have to do Annapolis or, if you are in Western Mass., you don’t have to go to Boston. You can virtually connect with your politicians,” he added.
Originally started by Ahmed in 1999 as part of his campaign to run for Maryland House of Delegates, StateDemocracy evolved and in 2001 Ahmed started the StateDemocracy Foundation to oversee the Web site. Since 2001, approximately 500,000 people have visited the site, with 150,000 registered users. In the last month, the site’s traffic has increased 400 percent, has seen 76 percent first-time users and had 120 widget packages downloaded to other sites. An average of 20 users are adding StateDemocracy’s voter tools to their Facebook profiles on a daily basis.
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Ahmed |
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The success is a dream envisioned for Ahmed and he has put his money behind the venture, pumping $300,000 into StateDemocracy since 2001 through his V-Empower Inc. He started the Bowie, Md.-based Web-strategy firm in 1999. V-Empower provides services such as software development, application security consulting, Web development, e-commerce implementation and search engine optimization. The company also developed the Web-based tools that StateDemocracy uses. Customers include: Microsoft Corp., CA (formerly Computer Associates Inc.), Washington Suburban Sanitary Commission, Franklin McKinley Education Foundation and Prince George’s County.
A native of Hyderabad, India, Ahmed came to the United States after completing a bachelor’s degree in mathematics, physics and chemistry from Osmania University. He then attended American University’s School of Public Affairs in Washington, D.C.
He took a job as a reservation agent with Olympic Airways in 1983 and worked his way up to director of business development by 1999, when he left the airline industry to start V-Empower.
StateDemocracy’s Laureys is also vice president of client relations at V-Empower. Laureys and Ahmed met on the campaign trail in 1999 working for Presidential candidate Bill Bradley. Laureys said they both share a passion in politics fueled by schooling. Laurey has a bachelor’s degree in political science and history from George Washington University and a master’s degree in government and politics from the University of Maryland. He views StateDemocracy as the practical embodiment of this academic and theoretical political interest.
This year, Islam succeeded Ahmed as chairman of the StateDemocracy Foundation. According to Laurey, the goal was to put Islam’s business acumen to work expanding the scope of StateDemocracy.
“He has been very successful in his business career,” said Laureys. “He has a vision about where he wants StateDemocracy to go to using his experiences and talents and his connections from the business field.”
Islam is the chief executive officer and chairman of FI Investment Group, a holding company that owns health-care and IT companies. Previously, he was the CEO of QSS Group, an IT company that generated revenue of $300 million and earned recognition from the Inc 500 for six consecutive years, the Washington Technology Fast 50 for seven consecutive years and the Deloitte & Touche National Tech Fast 500 for eight consecutive years. He sold QSS to Perot Systems Corp.
Islam has been involved in the IT, aerospace engineering services and systems integration business for more than 25 years. In 1999, he was recognized by the Ernst and Young as Maryland Entrepreneur of the Year. The U.S. Small Business Administration selected him as the Minority Small Business Person of the Year of the Washington DC Metropolitan Area in 2001.
He has a bachelor’s degree and master’s degree in computer science from the University of Colorado.
According to Islam, his work with StateDemocracy is his way of giving back. “After I made my money I said it was time to give back to my community, my country, that I love so much and that is America,” he said. “I was very passionate about business and growing my company. Now I am passionate about StateDemocracy.”
Islam has very specific plans for StateDemoracy. These include: strengthening the reputation of the Web site as a brand, expanding the foundation’s board membership, soliciting more grant funding and benefactors, expanding strategic partnerships with other citizen engagement groups, voter registration Web sites and grassroots advocacy groups and connecting with state election boards to provide them with StateDemocracy’s voter tools and establishing a plan to more efficiently update data on poll locations, absentee ballot and voter registration forms.
Melding political passion into a clear plan for StateDemocracy’s success is Islam’s strategy now that he is at the helm. He believes that the same focus he used to generate his business success will spark similar growth with StateDemocracy.
“If you do not focus you lose power, you lose energy,” he said. “If you focus you can even drill a whole in a diamond.”
Indus Business Journal: November 1, 2008 |
India Post News Service
Living the American Dream Frank Islam
Sunday, 07.13.2008, 10:48pm (GMT-7)
VIRGINIA: Frank Islam is a name synonymous with the American Dream. A native of Aligarh, India, Islam was not exactly born with a silver spoon in his mouth.
But in 1994, when he bought QSS, a support services organization in information technology and aero space engineering, for a "small amount of money", he quickly established a growth of an unbelievable 55,000 percent, which made QSS the largest individual owned company in the United States of America.
After selling his company in Jan 2008, to former Presidential candidate Ross Perot for a whopping $300 million, Islam a proud alumnus of the Aligarh Muslim University, is busy with his new venture, FII Investments and a diagnostic imaging center he bought in Orlando with a 164-slice CT scan. To get an insight into the world of Frank Islam, India Post decided to talk to him in his lavish office in the upscale Tyson's Corner business area in Virginia.
IP: How would you describe yourself?
FI: There's an old proverb: 'I am like a wave; I exist only so long as I continue moving forward.' That sums it up - I am a man who likes to always move myself forward, whether through continuing to educate myself, by impacting the world around me through philanthropy, or as an entrepreneur, trying to push the envelope of achievement. I would describe my approach to any endeavor as one of "cautious pragmatism". It is important to me to choose things that will have an impact.
IP: What specific goals have you established for your occupation and life?
FI: In all things, my main goal is to be happy. I think that if you lose focus on what's really important - happiness - then what's the point? But understand that the pursuit of happiness is not always easy, but a choice that requires effort and, the recognition is not always in an ending, but often in the journey.
Specifically, I'd say that I always wanted to create a great company where people would be proud to work, and if it made money, even better. I also always wanted to help people who didn't have the same opportunities that I have. And I wanted to learn as much as I can about everything.
IP: What does it take to be successful in this career?
FI: I have tried to synthesize what it takes to be successful as an entrepreneur in the technology sector in a guidebook that I am preparing, called the "ICT Executives' Business Guidebook." In that, I talk about what kind of planning you need to do, how to go about marketing, and how to position yourself to customers.
At the core of all of it is just common sense - find the need in the market, develop a solution, and deliver it effectively and efficiently. Ultimately, it comes down to providing value to your customer. And of course, you make mistakes and learn from them. Generally, the same things are necessary to be successful in any career -- effort, perseverance and focus.
IP: How do you evaluate success?
FI: Everyone has a different definition of success. Success to me is achieving the goals I set for myself, enjoying what I do and learning from the experience. It's very much an individual phenomenon. I think the common denominator among successful people, though, is that they think in terms of "I can, I will, I am" as opposed to "would have, could have, should have, and won't."
IP: What's in the offing for the future?
FI: I plan on building the FI Investment Group to become a world class financial investment firm. We will be making direct investments, as well as forming debt, equity and hedge funds with like-minded investors, which will leverage my internally generated cash, as well as my experiences in business.
I plan on giving back to the world through my foundation and a charity as well as participating in many civic and community organizations. Hopefully, through all of these endeavors, I will have an opportunity to continue to learn, enjoy myself and make an impact. And most of all, I plan on having fun and enjoying life with my wife.
Tech Entrepreneurs from India are Empowering US Voters
Hyderabad,India.Nov, 2008: Shukoor Ahmed ran for a seat in the Maryland House of Delegates in 1998, after coming to America a decade earlier from Hyderabad, India. Campaigning door-to-door, he was surprised so many voters did not know who represented them! After his race ended slightly short of victory, he took advantage of his Master’s degree in Computer Technology and Political Science to build StateDemocracy.org, a website he launched in 2001 to connect citizens and lawmakers. His website’s motto encapsulated its mission: “Delivering Democracy to Your Desktop!”.
Frank Islam similarly came to America to study, earning B.S. and M.S. Degrees in Computer Science. He too became a citizen and eventually founded QSS, Inc., a technology firm he recently sold to Perot Systems for $250 million. |
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He won numerous awards for leadership and established a personal foundation supporting educational, cultural and artistic causes worldwide.
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Last month, Shukoor Ahmed handed over to Frank Islam the gavel as the new Chairman of the StateDemocracy Foundation, the nonprofit operator of the StateDemocracy.org website. Over its seven years, nearly 500,000 people have visited StateDemocracy.org. It remains the only 1-Stop portal where Americans living anywhere can connect with all their state and federal lawmakers.
Earlier this year, the Foundation launched another website, LobbyDelegates.com, that enabled rank-and-file Democrats to lobby “Super Delegates” -- the 800 top party officials who held the deciding votes in the very close Presidential primary between Barack Obama and Hillary Clinton. Some 30,000 users lobbied Super Delegates to support their preferred candidate via this one-of-a-kind service, before Obama was finally nominated on August 28. |
The StateDemocracy.org portal is now playing a key role in empowering voters to participate in America’s dramatic General Elections on November 4. It offers citizens free online access to: (1) voter registration, (2) absentee ballots and (3) a polling place locator. These tools all work for any jurisdiction in the nation. The site also offers widgets that can be installed on other civic websites for use by their visitors. Even facebook.com offers these tools for its users to add to their own Profile page, to facilitate voting among their visiting friends.
As he takes charge amid America’s historic election, Mr. Islam has embraced the opportunity to give back to his adopted nation by using Internet technology to expand civic engagement. He noted that in October alone, users of StateDemocracy.org doubled compared to the previous nine months, largely due to demand for absentee ballots -- yet another sign of the record-breaking U.S. voter turnout expected this year.
Mr. Islam hopes to use the entrepreneurial skills that brought him so much business success to similarly boost the Foundation to its next level. His goals as Chairman include recruitment to diversify the Board’s expertise, methodical strategic planning, greater grant funding and expanded partnerships with kindred organizations.
Shukoor Ahmed, who will remain on the Foundation’s Board, was recognized last month for the web technology firm he founded, V-Empower, Inc. It was named as the 7th fastest growing technology firm in the Washington, DC area last year. V-Empower builds websites for political candidates and organizations in the U.S., and increasingly in other nations as well.
Not one to forget his homeland, Mr. Ahmed also created a similar website for citizens in India -- IndiaDemocracy.org - which has attracted nearly 50,000 users since it was launched in December 2002. It remains India’s only civic networking portal, empowering users to contact their lawmakers, as well as share news, photos, videos and blogs about politics in India.
Both of these sons of India can claim to be carrying on the legacy to the wider world of renowned Indian mathematician Aryabhatta, who is credited with inventing the concept of “zero” -- the very foundation for all computer programming. So, it is fitting that two natives of India, the world’s largest democracy, are dedicated to using the power of technology to strengthen civic participation in the world’s oldest democracy, the United States of America!
Reachout's News Bureau
Nov' 2008 |
India-born entrepreneurs empower US voters
Shukoor Ahmed ran for a seat in the Maryland House of Delegates in 1998, after coming to America a decade earlier from Hyderabad, India. Campaigning door-to-door, he was surprised so many voters did not know who represented them!
After his race ended slightly short of victory, he took advantage of his Master’s degree in Computer Technology and Political Science to build StateDemocracy.org, a website he launched in 2001 to connect citizens and lawmakers. His website’s motto encapsulated its mission:
“Delivering Democracy to Your Desktop!”
Frank Islam similarly came to America to study, earning B.S. and M.S. Degrees in Computer  Science. He too became a citizen and eventually founded QSS, Inc., a technology firm he recently sold to Perot Systems for $250 million. He won numerous awards for leadership and established a personal foundation supporting educational, cultural and artistic causes worldwide. (See details at www.ffislam.com).
Last month, Shukoor Ahmed handed over to Frank Islam the gavel as the new Chairman of the StateDemocracy Foundation, the nonprofit operator of the StateDemocracy.org website. Over its seven years, nearly 500,000 people have visited StateDemocracy.org. It remains the only One-Stop portal where Americans living anywhere can connect with all their state and federal lawmakers.
 Earlier this year, the Foundation launched another website, LobbyDelegates.com, that enabled rank-and-file Democrats to lobby “Super Delegates” -- the 800 top party officials who held the deciding votes in the very close Presidential primary between Barack Obama and Hillary Clinton. Some 30,000 users lobbied Super Delegates to support their preferred candidate via this one-of-a-kind service, before Obama was finally nominated on August 28.
The StateDemocracy.org portal is now playing a key role in empowering voters to participate in America’s dramatic General Elections on November 4. It offers citizens free online access to: (1) voter registration, (2) absentee ballots and (3) a polling place locator. These tools all work for any jurisdiction in the nation. The site also offers widgets that can be installed on other civic websites for use by their visitors. Even facebook.com offers these tools for its users to add to their own Profile page, to facilitate voting among their visiting friends.
As he takes charge amid America’s historic election, Mr. Islam has embraced the opportunity to give back to his adopted nation by using Internet technology to expand civic engagement. He noted that in October alone, users of StateDemocracy.org doubled compared to the previous nine months, largely due to demand for absentee ballots -- yet another sign of the record-breaking U.S. voter turnout expected this year.
Mr. Islam hopes to use the entrepreneurial skills that brought him so much business success to similarly boost the Foundation to its next level. His goals as Chairman include recruitment to diversify the Board’s expertise, methodical strategic planning, greater grant funding and expanded partnerships with kindred organizations.
Shukoor Ahmed, who will remain on the Foundation’s Board, was recognized last month for the web technology firm he founded, V-Empower, Inc. It was named as the 7th fastest growing technology firm in the Washington, DC area last year. V-Empower builds websites for political candidates and organizations in the U.S., and increasingly in other nations as well.
Not one to forget his homeland, Mr. Ahmed also created a similar website for citizens in India -- IndiaDemocracy.org -- which has attracted nearly 50,000 users since it was launched in December 2002. It remains India’s only civic networking portal, empowering users to contact their lawmakers, as well as share news, photos, videos and blogs about politics in India.
Both of these sons of India can claim to be carrying on the legacy to the wider world of renowned Indian mathematician Aryabhatta, who is credited with inventing the concept of “zero” -- the very foundation for all computer programming. So, it is only fitting that two natives of India, the world’s largest democracy, are dedicated to using the power of technology to strengthen civic participation in the world’s oldest democracy, the United States of America.
The author is the executive director of StateDemocracy Foundation, and can be reached at Ken.Laureys@StateDemocracy.org.
Sify News, November, 2008
For Immediate Release
May 28, 2008
Contact: Georgina Javor
(301) 581-5194
gjavor@strathmore.org
Strathmore Announces Election of
New Board Member
Frank F. Islam joins
Strathmore’s Board of Directors
N. Bethesda, MD: Strathmore Hall Foundation, Inc., an established arts presenter and cultural destination, announced today the election of two new board members, one of which is a County Executive appointee.
The Strathmore Board of Directors, and Ike Leggett, the Montgomery County Executive, appointed Potomac resident Frank F. Islam, CEO and Chairman of FI Investment Group.
This respected corporate and civic leader joins the now 29-member board to oversee the management of the affairs, funds and property of Strathmore in fulfillment of its mission. Strathmore Hall Foundation nurtures art, artists and community through creative and diverse programming of the highest quality.
Harold K. Roach, Cynthia Wong Hu, Esq. and Deborah Marriott Harrison will retire from the Board at the end of May.
ABOUT THE NEW BOARD MEMBER
Frank F. Islam is CEO and Chairman of FI Investment Group, a holding company that owns healthcare and IT companies. Previously, Mr. Islam was CEO of QSS Group, an information technology company, which he sold in January 2007 for $250 million. With a BS and MS degree in Computer Science from the University of Colorado, Mr. Islam has been an active participant in the Information Technology, Aerospace Engineering Services and System Integration business for more than 25 years. In 1999, he was recognized as the Ernst and Young Maryland Entrepreneur of the Year, and in 2001, the U.S. Small Business Administration selected Mr. Islam as the Minority Small Business Person of the Year for the Washington, D.C. Metropolitan area.
ABOUT STRATHMORE
Strathmore, a 24-year old established arts presenter and cultural destination, nurtures art, artists and community through creative and diverse programming of the highest quality and is home to the Music Center at Strathmore, a 1,976-seat concert hall and education complex. Strathmore, located at 5301 Tuckerman Lane in North Bethesda, MD, is immediately adjacent to the Grosvenor-Strathmore station on Metro’s Red Line and a half-mile from the Capital Beltway. For more information, call (301) 581-5100 or visit www.strathmore.org.
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Strathmore is supported by a grant from the Maryland State Arts Council, an agency dedicated to cultivating a vibrant cultural community where the arts thrive. An agency of the Department of Business & Economic Development, the MSAC provides financial support and technical assistance to non-profit organizations, units of government, colleges and universities for arts activities.
Strathmore is also supported in part by the Arts and Humanities Council of Montgomery County.
Strathmore Hall Foundation, Inc. Board List
Peter Vance Treibley, Chair
Carol A. Trawick, Vice Chair
Jerome W. Breslow, Esq., Secretary
Steven C. Mayer, Treasurer
Paul J. Allen
Joseph F. Beach ex officio
Meagan T. Campion
Richard “Dickie” S. Carter
Starr G. Ezra
Hon. Nancy Floreen ex officio
Solomon Graham
Nancy Hardwick
Paul L. Hatchett
Frank F. Islam
Alexine C. Jackson
Dianne Kay
James F. Mannarino
Caroline Huang McLaughlin
Alan E. Mowbray
Ken O’Brien
Carrie F. Passmore
Lori Riordan
William “Bill” G. Robertson
Gabe Romero
Dale S. Rosenthal
Mary Kay Shartle-Galotto
Craig A. Snedeker
Wendy J. Susswein ex officio
Annie Simonian Totah
Charles A. Lyons, Chair Emeritus
R. Robert Linowes, Founding Chair
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WINNING THE TECH LOTTERY!
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Frank Islam sold QSS, his 13-year-old government contracting business, to Ross Perot last January for a whopping $250M. What does someone with that much money do now? We paid a visit to Frank in his Tysons office to find out. |
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One thing’s for sure: Frank is happy. He was all smiles as he ushered us into his 11th floor office and offered iced green tea, which he says he drinks every day. Since selling QSS, Frank definitely has more free time: His regimen went from 16-hour days, six or seven days a week, to meetings that don’t start until 9:30 AM, plus extended lunches. So what exactly does Frank do at his new office? He’s started Frank Islam Investment Group, which bets on emerging tech like Vigilar, an Atlanta-based security software firm. Frank’s also taken an interest in diagnostic imaging centers, like one he purchased in Orlando with a 164-slice CT scan. Why the jump from contracting to healthcare? “It’s a three trillion dollar industry – why not?” he tells us. Also, he signed a 3-year non-compete with Perot so contracting was a no-go, although he admitted it might be possible again down the road. |
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We wondered what it was like selling QSS. Like selling a child? A death in the family? Not for Frank: “I’m always optimistic; it didn’t bother me at all when I left.” He said he was ready for the last couple years; it was time to move on to new challenges. Now Frank and wife Debbie have started the Debbie and Frank Islam Foundation, a scholarship fund sponsoring arts and education all over the world. Plus, as a personal friend of Hillary Clinton, he also has a big interest in politics. He’s been fundraising, and if Hillary’s chosen, may even enjoy a civics lesson at the Democratic National Convention in Denver. And there’s always his new house to keep him busy. He’s working on getting the permit to build a French chateau, complete with Japanese koi pond, on a 9-acre lot in Potomac. Hmm, what would he have done with a billion?
Source: Tech Bisnow |
In the beginning of December, TiE-DC Charter Members elected the new TiE-DC Board of Directors for 2008. A record number of Charter Members both ran for and voted in the election. Congratulations to the 2008 TiE-DC Board of Directors, and thank you to all members who ran and voted in the election!
2008 TiE-DC Board of Directors:
*President: Rakesh Gupta of Aptara
*President-Elect: DP Venkatesh of mPortal
*Jinesh Brahmbhatt of Merrill Lynch
*PV Boccasam of Approva
*Teresa Carlson of Microsoft
*Cynthia de Lorenzi of Success in the City
*Frank Islam of FI Investment Group
*Satish Jha of Digital Partners
*Amita Shukla of New Enterprise Associates
*Uli Werner of EDC Consulting
*Steve Thomas of TiE-DC |
TiE-DC asked the 2008 Board members why they chose to get involved on the TiE-DC Board and what they hoped TiE-DC would accomplish in 2008, and here is what they thought.
Cynthia de Lorenzi: "Among the many reasons I wanted to get involved on the TiE-DC board a couple of the most compelling are TiE-DC’s executive team the quality of the programs and impressive status of the membership. The executive team’s vision and professionalism reflects the caliber of TiE-DC’s membership and their commitment is apparent in how TiE-DC has grown.
It is my hope that in 2008 we will see an increase in membership, especially in the number of women who serve as leaders in our region who discover how great this organization is."
Uli Werner: "I chose to get involved with the TiE-DC board because I believe that you need to get really involved with an organization, otherwise you cannot leverage your membership to the maximum. On a regular basis I chose one organization that I think is worthwhile to get involved and this is TiE-DC, since I believe that the mission, the events as well as the membership have the greatest synergy with my own and that of my company.
I hope that we can continue to offer the same amount and quality of events we offered in 2007 and that the image and reputation of the organization continues to increase to even higher levels in order to attract new members, interesting speakers and good sponsors."
DP Venkatesh: "I felt that being part of a high powered team was a great way to move TiE-DC to the next level. After being on the Board for a year I am very excited to be President Elect and work along with Rakesh to make some waves in 2008.
I am hopeful that we will be able to grow our membership base and attract and retain more high caliber members as we have in prior years and also be able to showcase speakers and industry events of a greater magnitude in 2008."
Frank Islam: "I got involved in TIE-DC board because I can help this organization to get to next level. This is a great organization and we all have to be involved to make it more successful and more innovative.
I would like to make TiE-DC more visible in the investment community as well as have more networking events."
Satish Jha: "I have been engaged with TiE activities for several years and was on the Board of another chapter a few years ago. I believe its simply a confluence of forces that bring myriad poibilities to converge on to something. Some of the continuing leaders of TiE were kind enough to rope me in and ask me to be more active. I could not do it last year and hope to have a bit more time at hand to support the Board level needs of TiE DC during the year ahead.
I look forward to starting and energizing special interest groups, the Healthcare Roundtable, exploring entrepreneurial possibilities in the field of education and technology and starting The Young Entrepreneur (TYE) forum."
Jinesh Brahmbhatt: "With my 14 years experience at Merrill Lynch, as Vice President in the Private Banking and Investment Group and being a TiE-DC sponsor since its inception, I wanted to use my contacts and resources (as well as those of my partner, Xerxes Mullan) in order to help created more value for the organization.
My goals for TiE-DC in 2008 would involve creating more membership value with events and programs that are out of the box. I would also like to involve more members in the organization."
Many Indian-Americans came to Washington with a few dollars and big hopes. Thanks to hard work—and often lucrative government contracting—some are millionaires, living large in Potomac and McLean and making their presence felt in politics, business, and the arts. But they never forget their roots.
A wooden bridge arches over the pond of water lilies. For a moment, you are transported to the garden in France where Claude Monet spent the last years of his life painting.
Frank Islam can’t afford a Monet—not yet. But the Indian-American entrepreneur can re-create the painter’s garden at his home in Potomac.
Islam has another pond—actually two—for fish that glitter in the sun. These are big fat koi from Japan. There are more than 200, which, at this size, cost $150 to $200 each. No wonder there’s a complex feeder system and water jets to scare away herons.
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But all this, in addition to an air-conditioned gazebo, Italian statues, and a spouting water fountain, is just a start for Islam and his wife, Debbie, the passionate gardener. He has just sold his company, QSS Group, a technical-services firm in Lanham, to Ross Perot’s Perot Systems for more than $250 million.
So it’s time to upgrade to a home on nine acres in Norton, a neighborhood in Potomac.
Along with a new house, the Islams are building a garden five times as big as their current one. “We will have a seven-acre garden with formal and informal gardens, shade gardens, waterfalls, and a conservatory,” Islam says.
Their future neighbors, Ken and Kavelle Bajaj, belong, as does Frank Islam, to the growing club of Indian-American millionaires in the Washington region.
There are even billionaires. In the “wealth list” published in its June issue, Washington Life includes Rajendra and Neera Singh, pioneers in the wireless industry, in the category of those with a net worth between one and two billion.
Rich Indian-Americans in Washington have made their fortunes in finance, management consulting, and, increasingly, information technology and cellular and Internet services. They live in faux chateaux that do justice to a Kubla Khan fantasy. Most live in Potomac, McLean, and Bethesda.
The desis, as many Americans of Indian origin refer to themselves—desi is a word used for people from South Asia—have arrived. And many are living the American dream.
Next to Frank and Debbie’s future home, you’ll see majestic wrought-iron gates. They glide open to a road that leads, curving this way and that, to a Georgian-style mansion.
Ken Bajaj evidently has the Midas touch. In 2000 he took his Internet-services company, AppNet, public and then sold it to Commerce One for $2.1 billion. Next he founded DigitalNet Holdings, a provider of secure network services. He sold it three years later to BAE Systems for nearly $600 million.
The foyer of Bajaj’s home feels like a cathedral, with a chandelier that illuminates the floor, a mosaic of marble designed and flown over from Italy for them. Antiquities spill over in the succession of sitting rooms, their walls lined with paintings in gilded frames.
Ken and Kavelle Bajaj suggest I tour their home if I want to understand how they lead their lives as successful Indian-Americans.
“Look, you don’t need to talk to us about what we are or do. It’s all in our house. You will see how we combine the East and West,” says Ken Bajaj.
Up at the level of the chandelier is the prayer room. The most prominent room on that floor, it can hold a small congregation and houses the Sikh holy book, Guru Granth Sahib. On the walls are religious paintings.
Contemporary Indian art can be found throughout the house. But the painting that most signals their arrival is what the couple bought at Christie’s in London: a large mid-19th-century painting, by British artist Frederick Christian Lewis, of the royal court of an Indian maharaja.
Their American roots are on display in the library. There are porcelain figures—several of them Lladro—spilling out from every nook and corner. There are figures of a seated Abraham Lincoln and of George Washington crossing the Delaware and large depictions of the Capitol and the White House. Each piece has a flag; there’s even a large bronze eagle with a flag.
The full blast of American popular culture hits you in the basement. There’s a large home gym, saunas of various kinds, a whirlpool tub that can seat a dozen, a movie theater, and a whiskey cellar as well as a wine cellar. American memorabilia abounds, from a baseball signed by Babe Ruth to autographed photographs of Britney Spears and other celebrities.
“It is the American dream with Indian values,” Ken Bajaj says. “Our home, like us, is a blend of the two.”
The allegiance of the Bajajs to America is evident. One of their two sons, Rueben, is a volunteer firefighter; he joined the squad after September 11, 2001. Both children also respect their Indian heritage. “Our kids are born American, but the minute they see you they will touch your feet,” says Ken Bajaj. Touching the feet of elders is a sign of respect among Indians.
The embrace of Americana and the pop patriotism has less to do with showing off than with showing loyalty to one’s adopted country. It’s not unusual to see an American-flag pin on a lapel among desis in the world of business.
There’s also a fear of being taken for an FOB, or fresh off the boat. Besides living the American dream, there are other ways to blend in. Some Indians have adopted American first names. They have also adopted the clothes: Saris, increasingly, get less of an airing.
“If you become wealthy and sophisticated, you embrace the American wealth culture,” says Frank Islam.
The Bajajs could be called the new maharajas, Indian-Americans who have the money to satisfy every whim. For most, it was all uphill getting there. Like immigrants who came before them—the Irish, the Italians, the Asians—most Indians came to the United States with empty pockets and dreams of a better life.
“We came with $8 in the late ’60s—that’s all the foreign exchange the Reserve Bank of India would allow,” says Rama Deva. She and her husband, Arun, live in a mansion in Potomac with a landscaped garden with stone sculptures shipped from India. Arun was a partner at Touche Ross & Company (later Deloitte & Touche) before he started his own accounting and consulting firm and moved to Washington 15 years ago.
Spotting an Indian in Washington was a rarity back in the 1970s. Today, it is hard not to. There are more than 100,000 residents of Indian origin here. This spring, the area got its tenth temple, the 28,000-square-foot Hindu Temple of Metropolitan Washington, in Adelphi.
Going Mainstream
It is not just the numbers that matter. The profile of Indian-Americans in Washington has changed over the past decade. Not only have many more entered the realm of the rich, a number have made their way onto social, cultural, corporate, and political ladders. A few—such as Rajendra and Neera Singh, Sharad and Mahinder Tak, Ranvir and Adarsh Trehan, and Arun and Rama Deva—have made it onto the Social Register, within air-kissing distance of the capital’s powerbrokers.
The billionaire Singhs, who live in Mount Vernon, are shy about their wealth and lifestyle. They’re among the more admired in the Indian-American community because of all they’ve done. Rajendra sits on a number of boards, including the US Chamber of Commerce and Johns Hopkins University.
Sudhakar V. Shenoy, CEO of Information Management Consultants, was recently named one of the top 25 most influential people in the Washington high-tech industry by Business Forward Magazine. The ebullient entrepreneur was chair of the Northern Virginia Technology Council from 2002 to 2005. Shenoy is also president of TIE-DC, a group of more than 500 area entrepreneurs.
“Indians need to be more visible and certainly more involved with philanthropy,” says Shenoy.
An increasing number of Indian-Americans from the corporate world are gravitating toward cultural boards. Ashok Kaveeshwar, a former CEO of Hughes STX Corporation, was vice chair of the Wolf Trap board for six years until 2005. He is also involved with the Freer and Sackler galleries.
Mahinder Tak, a radiation oncologist and retired US Army colonel, is another player on Washington’s cultural scene. Her home in a wooded area in Bethesda, where she lives with her entrepreneur husband, Sharad, houses arguably the largest personal collection of modern and contemporary Indian art in the United States. Last year Art & Antiques magazine listed her among the top 100 collectors of art in the country.
The Tak home has for years been a beacon for visiting artists from India, many of whom have exhibited their work on its walls. Mahinder has spurred many Indian-Americans to become serious buyers of Indian art. Lately, she has extended her repertoire to American and European artists, and Indian-Americans are following her down that path as well.
Mahinder’s influence is not limited to the Indian-American community. Many Americans, including academics and buyers, have been invited to see her collection.
“I would like Westerners to understand India’s rich art,” says Mahinder, who is on the board of trustees of the National Museum of Women in the Arts. Egged on by Mahinder, the museum established a chapter in India in 2005. She helped organize an exhibition held there, “The Narrative Thread: Women’s Embroidery From Rural India.”
A group of Indian-Americans, spearheaded by Rama Deva, a collector of contemporary Indian art, lobbied the Freer and Sackler galleries to give two rooms to a permanent display of art from the Indian subcontinent. Other Indian-Americans are trying to raise the profile of Indian performing arts, literature, and cinema by working with organizations such as the Asia Society and the Library of Congress. Deva and her husband have sponsored seminars on India at universities around the region.
Americans of Indian descent—some first-wave immigrants but mainly their children—are becoming more politically active.
Washington may not have the equivalent of Bobby Jindal, who was recently elected governor of Louisiana. But Maryland does have Kumar P. Barve, majority leader in the Maryland House of Delegates. Elected in 1990 and reelected three times since, he represents part of Montgomery County. His maternal grandfather, a school administrator, immigrated to the United States in 1911. His father, an architect, came in 1957.
More Americans of Indian heritage are affiliating themselves with political parties. Entrepreneurs in particular have realized the value of lobbying. And political candidates—no doubt aware of the fundraising potential—are seeking out Indian-Americans.
In her Bethesda home, Mahinder Tak recently hosted a reception for Hillary Clinton. The Republican Party also enjoys the support of Indian-Americans, especially among businessmen.
Americans of Indian origin have become more visible on Capitol Hill and in the White House. Manpreet Singh Anand works for Congressman Tom Lantos, chair of the Foreign Affairs Committee. Neera Tanden is Senator Clinton’s presidential campaign policy director. Natwar M. Gandhi is the District of Columbia’s chief financial officer.
Hyphenated Identity
Indians began to come to the United States in the late 1960s. It was a trickle before President Lyndon Johnson changed the immigration law in 1965, increasing the limits for non-Europeans.
Many of the Indians who came to America would have had less opportunity in India; at the time, social hierarchies prevented people from achieving more success or wealth than that of their parents.
Still, most Indians did not come to stay. They came to study, save money, and return home with the wherewithal for a better career and life. Many Indian families never made this country their home because they feared their children would marry non-Indians. They lived each year as if it were their last here, bent upon saving enough to build a house in India. “They would earn in dollars but think in rupees,” says Rama Deva.
Deva came to the United States in 1969. “We were the go-backers,” she says. “We always talked about moving back before the formative years of our two children.” But the Devas stayed, applying for US citizenship in 1978 when they become eligible.
The first generation consisted largely of engineers, physicians, accountants, and teachers. Like many first-wave immigrants, they kept to themselves. Once you crossed the threshold of the house in Rockville or Fairfax, you were in India.
Their children often got stuck between the two cultures. They were referred to as ABCDs—American-Born Confused Desis. The ABCDs talked a lot about roots and identity and found it difficult to lead double lives, especially when they fell in love with pardesis, or foreigners. There was a film called ABCD made by Krutin Patel, an Indian-American, in 1999.
The slightly pejorative term had currency until a few years ago. The C seems to have been dropped by an increasing number of young Indian-Americans.
Manpreet Singh Anand, 31, who works on the Hill, has never identified with the ABCD label. His parents are from the Punjab, a state in northern India. He was born and raised in Texas and went to graduate school at UC Berkeley.
“For me it was not so much confusion as adaptation to my Punjabi culture. I am more Punjabi than Indian and more Texan than American,” he says, adding that he, like many others in this country, is an amalgamation of cultures.
The hyphen between Indian and American has begun to fade. While first-wave Indian-Americans tend to think of themselves as Indian, a growing number of those born here after the 1970s prefer to be described as Americans of Indian origin.
Sometimes the generational gap can be wide. The older generation came with nothing. They had time for little else other than making enough money to give their children the best education. They hung on to the cultural values and lifestyle they had brought with them.
The next generation isn’t following the same path. Says Manpreet Anand: “My parents’ generation was all about being engineers or doctors. My generation has diversity—I can go into different career paths.”
Neal Katyal’s parents wanted him to be a doctor. He chose law. The legal profession was not considered ideal by Indians. Doctors and engineers were the professions of choice because they had the greatest employment potential at the time.
Brought up in and around Chicago, Katyal, now a professor at Georgetown University Law Center, recently won the landmark Hamdan v. Rumsfeld case in the Supreme Court, one that challenged military tribunals at Guantanamo. Last year the newspaper Lawyers USA named him Lawyer of the Year. Another sign of arrival: his appearance on The Colbert Report.
Some young Indian-Americans are going down even more atypical paths. Princeton graduate Rajiv Vinnakota gave up a career as a management consultant to start the first urban public boarding school in the States, Schools for Educational Evolution and Development, or SEED. Vinnakota, like college classmate Eric Adler, with whom he founded SEED in 1998, wanted to leave a better “social footprint.” Widely praised, the school has changed the lives of hundreds of minority children by enabling them to go to college.
The children born in this country are more “comfortable in their skin,” says Rakesh Gangwal, 53, a former CEO of US Airways who lives in McLean. “As a first-generation immigrant there is a deeper hunger. When I first came here, we did not have the same social fabric or support. You had to quickly become self-reliant. The second generation doesn’t have the same hunger. There is no fear. This is their country.”
Had it not been for the resilience of the first wave, the next generation would not have had it so easy. “We paved the way for them,” says Dr. Jyothi Gadde. One of the top allergists in the region, she has offices in Warrenton, Gainesville, and Fairfax. “The discrimination was subtle. We were good students with excellent scores but could not get residencies at the best universities. Now our kids have no trouble getting into top places like Johns Hopkins and Harvard.”
Reagan Evolution
Indian-Americans in New York used to look down upon their poorer cousins to the south. The money was in Manhattan—with investment bankers, CEOs, and hedge-fund managers—or with those who had made it big in California’s Silicon Valley.
What changed it all was federal outsourcing, triggered by Ronald Reagan’s decision to shrink the federal bureaucracy. The government became a honey pot. Indian-Americans began to gravitate to the capital to make their fortunes providing services to agencies such as the departments of Defense and Homeland Security.
Sharad Tak, the entrepreneur who lives in Bethesda, was the pioneer. In 1974, he lobbied for Indian-Americans to be considered minorities, enabling them to take advantage of incentives given to minority-owned businesses.
Tak’s company, ST Systems Corporation, provided programming and systems integration to agencies including NASA and the Federal Aviation Administration. He brought in other Indian-Americans to work with him, including Frank Islam, the man with all those koi fish.
“Sharad was my boss,” Islam says. “He inspired my entrepreneurship.” In 1991, Tak sold his company to Hughes Aircraft. A serial entrepreneur, he then ventured into television and communications and, more lately, paper mills.
Other big players came. In 1989, Charles K. Narang founded NCI. Today, the company has 1,900 employees and is one of the leading providers of information-technology services to the federal government. In 2004, the Air Force awarded NCI, headquartered in Reston, a $9-billion contract. Millions more in contracts with the FAA, North American Aerospace Defense Command, and other security agencies continue to pour in.
The real influx began after 9/11, when Homeland Security started giving out contracts and young Indian IT experts and software specialists flocked to the region, especially Fairfax County. A Little India emerged in Fairfax. Today there is a vibrant and diverse community of desis.
Ashok Bajaj opened the Bombay Club a stone’s throw from the White House in 1988. His break came in 1993 when President Bill Clinton dropped in—and then continued to come with his family. Emboldened by the presidential visit, Ashok opened another restaurant across the street and called it the Oval Room.
Bajaj now has six restaurants—and two more planned—that feed power brokers from the Hill, K Street, embassies, and the White House. But he had a hard time when he first came to Washington convincing a landlord to give him space.
“Nobody thought there was anything like fine Indian cuisine. I had to fly my landlord to London to show him the kind of restaurant I wanted to have,” says Ashok Bajaj, who is no relation to Ken. Ashok is convinced that the taste for Indian cuisine developed with the changing perception among Americans about India and Indian-Americans.
For Anil Revri, who moved here in 1992, Washington is now a good place to be, although success took its time coming. Born in India, the 51-year-old artist has made a name for himself here. While his paintings—many of them innerscapes and geometric abstractions that sell for $20,000 to $60,000—occupy a pride of place in many Indian-American homes, more than half of his clientele is from outside the Indian-American community. He is the only Indian artist to have had a solo show at a major American museum.
Living in the States, the painter says, made him more aware of what is Indian in him and in his work. But home is here.
“While living in India I never thought about what it was to be an Indian; you just were. But here you are slotted in people’s perception as an Indian. It makes you think about what being an Indian means,” Revri says.
The new face of the Indian-American is evolving. Increasingly assimilated, they have begun to put down roots. Dr. Sanjay Prasad, an neurotologist, lives with his wife, Deepika, and their four children in Potomac. Their tennis court is not just a status symbol: The family plays together on weekends. They also have a music room, and their teenage daughter Meghna has just held her first concert and recorded a CD of self-written songs. Home for them is right here. But the pull of India is strong: The walls are full of contemporary Indian art. |
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BLACK TiE!
Haha. That headline’s a play on words. See, “TiE” is the illustrious former Indian CIO Council, for those of you who go way, way back to the late 90’s of the last century. It rebranded and (this could be our imagination) seems to come up at different times with different words that TiE stands for, the most recent being “The Innovative Ecosystem.” Anyway, we don’t care to overanalyze, we just want to party. So we went Monday night to the Swiss Embassy “Black-TiE” holiday bash where they not only graduated their TiE-Smith Fellows but also announced their 2008 Board of Directors. After quadrupling their membership in the past two years, it wasn’t surprising the 150 guest were over capacity for the room.
What’s this? “FI Investment Group” as the stated affiliation now for our old friend Frank Islam, left? That’s what happens when you get rich—his cards used to say, “CEO, QSS": until he sold QSS to Perot Systems for $250M earlier this year. With him, wife Debbie, ubiquitous IMC CEO Sudhakar Shenoy, and Urban Line’s Girish Jindia. Frank and Debbie are building their dream home -- a little 32k SF cottage in Potomac. Sudhakar just got back from India where he traveled in style on the Palace on Wheels or what he likened to a land version of a luxury cruise. Girish just bought a house in South Beach and tells us his oldest daughter is planning a wedding reception at the Omni Shoreham. Sudhakar: Are you bringing back the Nehru Jacket?
Frank Islam
Founder
QSS Group
In the 06/14/2007 edition of ExecutiveBiz we had a chance to catch up with Frank Islam, Founder of QSS Group.
Earlier this year, Perot Systems acquired QSS Group for $250 million in an all cash transaction. The company had revenues of approximately $260 million, and was founded by Frank Islam. We catch up with Islam on why he sold his company, his future plans, and what were the key to the company’s success.
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ExecutiveBiz: What led you to found QSS Group?
Frank Islam: Through my experiences at CSC and Raytheon, I had developed a pretty good understanding of both the delivery and marketing challenges of an IT and Engineering services company, so I felt I was prepared to run a company. I also was excited about the challenge of building a company from the ground up----and although it was a big risk from both a career and financial perspective I was confident I had the energy and focus to build a company and make it successful.
ExecutiveBiz: What were the main areas of focus for QSS Group?
Frank Islam: QSS Group was a 100% Federal government contractor providing both Engineering and IT services. QSS serves both the civilian and defense agencies of the government.
ExecutiveBiz: Earlier this year, you sold the company to Perot Systems Government Services. Why did you choose this time to sell the company?
Frank Islam: There were many factors that went into the decision to sell the company at this time. We had successfully diversified the customer base so that we were not reliant upon any one significant contract or agency. Although we had originally had a number of set-aside contracts, we had also reached the point were most of those contracts had completed and were no longer part of our business base. These two factors helped to make us an attractive acquisition target, as well as our size, which was big enough to have a significant impact on any company that might acquire us, without being so big as to pose an integration challenge.
Additionally, we were at a time where market valuations were at a strong level, which meant that we would get a good value for the company. When we were approached by Perot Systems Government Services, we believed that company would be a good fit and that this would therefore provide a great opportunity for the employee population to continue to grow with the business. And finally, I was personally ready for a new challenge in my life. Although none of these factors made it critical that we sell at this time, and I was personally ready to continue to run the business for many more years if a sale had not worked out, things did come together well and we sold.
ExecutiveBiz: QSS Group experience rapid growth in a short time. What were the 3 keys areas to your company success?
Frank Islam: Although there are many factors that go into success, some key things that contributed to our success were:
- The ability to deliver what the customer wanted. QSS had a great reputation for customer satisfaction, which is critical for retaining your current work and getting new work. We had a lot of great people who did a great job of keeping the customer happy. Satisfied customers provide great references and demonstrate to a potential customer that you can do what you say you can do.
- Focused and efficient leadership. QSS had a very flat organizational structure and not a lot of bureaucracy, therefore we could be very responsive to any situation because we had a simple decision making process---it was easy to get to the ‘top” decision maker---me---because I was always around, engaged in the business and available. This level of efficiency also allowed us to operate at a reasonable cost, which allowed us to be able to offer our services on a very cost competitive basis.
- A strong new business orientation. New business is obviously the life blood of growth, and everyone at QSS was involved in contributing to the new business process in some way or form. We always worked very hard on understanding a potential customer’s requirements and making sure our proposal addressed exactly what they wanted.
ExecutiveBiz: What is your view of the upcoming rule change by SBA on recertification?
Frank Islam: It is clearly impossible to tell exactly what the impact will be until we see how each of the agencies actually implement it. It will definitely impact the M&A market in the short-term, but I suspect the market will quickly adjust. Although I believe this action was a well-intentioned effort to correct a perceived problem, in the end I am not sure it will be in the best interest of the government customer to limit the flexibility of small businesses to seek additional investors or affect an ownership change. These are natural events in the evolution of a business.
ExecutiveBiz: The M&A activity in the government space have been very active. Do you expect that to continue?
Frank Islam: Generally, I do believe it will remain active, primarily because I think the government market is an attractive one that will remain so regardless of changes in the administration. With the government’s focus on “best value” and its continually changing requirements, contractors will look to combine to gain leverage or expertise so as to be in the best position to fulfill the government’s requirements. There are many good, solid companies out there that serve this market, and most want to grow and diversify their business base so most will likely consider some sort of M&A activity (either as an acquireror or acquiree).
ExecutiveBiz: What about the sale to Perot did you learn or surprised you?
Frank Islam: I spent a lot of time both generally considering a sale and getting to know the Perot Systems (as well as their management team) before I made any sort of commitment. As I stated previously, I believed the two companies would fit well together and that this made sense for both of us. As a consequence, nothing really arose during the process that surprised me or that I wasn’t prepared for in some fashion.
ExecutiveBiz: What advice would you give a CEO of a government contracting company looking to sell his or her company in today’s market?
Frank Islam: In general, be realistic and patient. It is important to understand your company’s strengths and weaknesses and consider what that means with regard to valuation. It is also important to consider what “things” are important to you in any sort of deal---whether it relates to key terms of the agreement or the potential opportunities for your employees or even your continued personal involvement. These are examples of things that will impact a transaction and which are likely to be a bit different for each individual seller. If you have considered these in advance, you can deal with them in any initial discussions and avoid spending a lot of time pursuing a deal that you ultimately might not be happy with or might not work. There are a lot of great companies out there that are likely going to be interested in your company, but you need to be patient, not rush the process (or be rushed) and maintain your focus on running your business.
ExecutiveBiz: What does the future hold for you?
Frank Islam: As I stated earlier, I am interested in some new challenges. I have established an investment company and plan to seek some small, start-up opportunities that can benefit from both some investment dollars and some management guidance and advice. At the moment I am pursuing some opportunities in the health care field, and I have already invested in a small clinic that provides CT body scans, both from a diagnostic perspective and a general wellness perspective. I believe that there is a growing demand for non-evasive screening of targeted organs or areas (or the full body) to detect any problems on a preventative basis. I am very optimistic about this venture’s potential to grow in this area and to expand into new areas.
ExecutiveBiz: What is something most people don’t know about you?
Frank Islam: I have a keen interest in politics. I very much enjoy world history and spend a lot of my free time reading about it. It provides a great perspective to the problems we face today.
Distinguished guests, friends, ladies and gentlemen:
Thank you very much. I want to sincerely thank the National Association of Small Disadvantaged Businesses for honoring me with this award. I am extremely grateful to the Executive Committee of the NASDB. I am honored that I am the first SDB to win this prestigious award.
I would also like to thank the SBA for their support. My special thanks is to NASA NASA has helped us a lot. Without NASA’s support, the remarkable success story of QSS would have never happened.
I have known Hank Wilfong for a long time. He has helped me and QSS a lot, especially when QSS was struggling as an 8(a) graduate. People like Hank inspire all of us. Thank you Hank.
Let us do our part to ensure that the SDB community can prosper and have a bright future. It is the future that beckons to us.
Let us fulfill Hank’s vision. Let us commit ourselves to ensure that his dream shall never die.
Thank you once again. God bless you.
PEROT SYSTEMS TO ACQUIRE
QSS GROUP, INC.
Fairfax, VA – (December 18, 2006) – Perot Systems Corporation (NYSE: PER) today announced that it has signed a definitive agreement to acquire QSS Group, Inc., a U.S. federal government information technology services company based in Lanham, MD.
Through this acquisition, Perot Systems strengthens its platform for growth within the federal government services sector, gains several significant government-wide acquisition contracts (GWAC’s) and further strengthens its IT capabilities, including information assurance and applications development and management. It also expands both the scope of services and the areas Perot Systems serves within the Department of Homeland Security and the Department Defense.
“QSS Group’s experience, client relationships and strong team of talented professionals are a perfect complement to Perot Systems’ government services team,” said Peter Altabef, president and CEO of Perot Systems. “With this acquisition, we will be even better positioned to support the important work of our government clients.”
Following the acquisition, Perot Systems Government Services will have more than 3,400 associates serving the federal government and is expected to report 2007 full year revenue of approximately $600 million.
QSS Group’s clients include the Army, Coast Guard, Department of Health and Human Services, NASA, NOAA, Department of Treasury and the intelligence community. The company currently operates as the prime contractor on more than 90% of its contracts.
Government-wide acquisition contracts (GWACs) held by QSS Group include the Department of Homeland Security’s Enterprise Acquisition Gateway for Leading-Edge Solutions (EAGLE), the Army’s Information Technology Enterprise Solutions (ITES-2), the Department of the Treasury’s Total Information Processing Support Services (TIPSS-3), and the General Service Administration’s Millenia Lite. QSS Group’s awards under EAGLE complements Perot Systems’ award.
“QSS is an excellent addition to Perot Systems and the synergies gained in this transaction will provide expanded growth opportunities for our federal unit,” said Jim Ballard, president of Perot Systems Government Services. “Our goal is to optimize our capabilities to ensure we always deliver the most effective and efficient results to the government and integrating these two groups will further enhance our ability to accomplish these goals.”
“We are very pleased to join forces with Perot Systems,” said Frank Islam, CEO of QSS Group. “QSS and Perot Systems have complementary capabilities and very similar cultures, and I believe that together the two companies will produce a powerful government services growth engine. As a result, this acquisition will create even better advancement opportunities for our hardworking team.”
Perot Systems expects QSS Group to achieve revenue of between $260 million and $280 million for full year 2007. Perot Systems expects to close the acquisition during January and will consolidate revenue for the balance of the year.
Perot Systems will acquire QSS Group for $250 million of cash. The acquisition is expected to be accretive on a cash earnings per share basis, which excludes expense related to the amortization of acquisition-related intangible assets, by $.05 per share for full year 2007. Acquisition-related intangible asset amortization expense for full year 2007 is expected to be approximately $14 million, equal to approximately $.07 per share. Perot Systems expects to complete the integration activities associated with this acquisition during 2007. Including the effect of acquisition-related intangible amortization expense, this acquisition is expected to be accretive to earnings per share beginning in 2008.
About Perot Systems
Perot Systems is a worldwide provider of information technology services and business solutions. Through its flexible and collaborative approach, Perot Systems integrates expertise from across the company to deliver custom solutions that enable clients to accelerate growth, streamline operations, and create new levels of customer value. Headquartered in Plano, Texas, Perot Systems reported 2005 revenue of $2.0 billion. The company has more than 20,000 Associates located in North America, Europe, and Asia. Additional information on Perot Systems is available at http://www.perotsystems.com.
Cash earnings per share is a non-GAAP measure used by Perot Systems to measure the earnings impact of an acquisition prior to the effect of acquisition-related intangible amortization expense. The information necessary to reconcile this measure to the GAAP earnings per share impact is located in this press release, with the GAAP earnings per share impact being equal to cash earnings per share less the earnings per share impact of acquisition-related intangible asset amortization expense.
This press release contains forward-looking statements that are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Among many factors that could affect our business and cause actual results to differ materially are that we may bear the risk of cost overruns for custom software development and implementation services, our contracts generally contain provisions that could allow customers to terminate the contracts and sometimes contain provisions that enable the customer to require changes in pricing, and some contracts contain fixed-price provisions or penalties that could result in decreased profits. Please refer to our Annual Report on Form 10-K for the fiscal year ended December 31, 2005, as filed with the U.S. Securities and Exchange Commission and available at http://www.sec.gov/, for additional information regarding risk factors. We disclaim any intention or obligation to revise any forward-looking statements whether as a result of new information, future developments, or otherwise.
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