Mumbai-based second tier software company, GTL is sailing against the winds of software companies in India and elsewhere. The company has spent considerable time knowing its strengths and acting accordingly. Now the future looks good following an overhaul strategy.

But, GTL wasn’t always this focused. In fact, during the height of tech boom as the company added clients and grew businesses, it began to lose focus like most other companies. GTL was selling products and services without a clear idea of its strong points or where it wanted to be. GTL had various services and their six business groups were independent and marketed the services and suites separately. Adding to the lack of focus, the business groups never really upheld the relationship with the clients. GTL neither lost the clients nor got any new orders, like the proverb they just weathered the storm.

Before long, the management realized the company was heading nowhere and to spur it back on track, they searched for a suitable head. And the search ended with Dr. Michael Clark.

Keeping things in place
A veteran with over a decade long stint with United States India Business Council, Clark had witnessed how Indian owned companies in the U.S. faced similar problem. With a proven track record for drastically revamping companies’ strategies, GTL was just another challenge.

When Clark took over as the Chief Executive Officer last September, he saw that neither the company’s business groups could entice existing customers, nor lure new customers. So using his USIBC background, Clark devised strategies to revamp the company to bring back the company’s positive outlook. Clark realized that though GTL had good customers, maintaining relationship with them was tough. “Many of the ideas and concepts that we are applying now had been there. It was just that we did not pursue them vigorously,” he remarks.

The company restructured its business groups; in his words “put more thrust on customer focus and global strategy.” Since then, there has been a radical change in the way GTL thinks, works and decides. Today, Clarks says “GTL has committed itself to the idea that despite diverse competencies, the company is one and there is increased emphasis on customer focus and global strategy than ever before.”

With a market cap of Rs. 7.39 billion ($164 million) and revenues of Rs. 2.11 billion ($46.8 million), Bombay Stock Exchange listed GTL’s global strategy includes investing in key markets like North America, U.K. and Asia-Pacific. “We have been committed to global strategy from the very beginning, but is now doing it more systematically then ever before,” says Clark.

GTL went for a two-way dialogue with the customers bringing the top management for discussion. As a confidence building measure, GTL offered customers a host of other services like BPO, ITeS. “We focused on building the business backwards with customers, some of whom are almost decade old,” says Clark.

And GTL is back on track. The company might not expect returns overnight, but is expected to post good results over the next two quarters. “I wouldn’t say I have changed things in my nine months stint, but the results will be there for everyone to see in the next two quarters,” says Clark.

Banking on Telecom
GTL realized over a period of time that their strengths lie in telecom. Tie-ups with major telecom technology developer’s provides them a foothold in the telecom markets and access to latest technology. India’s fast growing telecom market had beckoned companies like Nortel, Ericsson, Nokia, Huawei, ZTE to set up operations, and GTL didn’t sit back in this venture.

Within the telecom segment, GTL focuses on the network management and network rollout segment that includes telecom technology developers and telecom service providers. GTL builds and rolls out telecom network for companies like Bharat Sanchar Nigam Limited—India’s largest integrated telecom operator, Nokia and Nortel.

For Nokia, GTL is rolling out BSNL’s network in the North Indian states of Rajasthan, Punjab and UP (West). Nortel has chosen GTL to build over 3800 GSM sites in Tamil Nadu, West Bengal, Bihar and Jharkhand. “As companies ramp up operations, they do not own every facet of technology and GTL is eyeing technology space. We are discussing with operators to rollout their networks and the negotiations have been successful,” reveals Clark. Besides network rollout, GTL provides management services such as site engineering, installation, testing, commissioning and networking integration.

GTL’s ability to roll networks more successfully lies in process management. GTL has built expertise in implementing projects faster and sometimes ahead of schedule versus competitors. Clark illustrates, “Usually software companies are good in process management or in product management. Our strength lies in process management as we finish any project fast.” With GTL domain expertise, clients derive actual benefits of quality rollout that is both cost effective and innovative.

GTL strategy with network management vertical is the same as network rollout. The company is hopeful of successfully implementing a carrier grade pilot project for a major telecom operator in the U.S. “Business in future will require network management and that’s where we see our business growing as more and more companies will give away contracts to outsiders rather than keeping it with themselves,” Clark reckons.

GTL looks at network management services as a potential business that will eventually bring in more revenues.

The company derives 35-40 percent of its revenues form network rollouts while slightly larger ITeS segment that includes BPO, ERP, network integration, contact center and security services provide about 50 percent and network management contributes about 3-5
percent which will go up in coming years.

By not being firm with a clear focus for some years, GTL has indeed come a long way. The key for GTL’s future growth will be its ability to provide solutions to the vastly different requirement of network management and network rollout industries.

And then, the party begins!