Recovery: The New Testing Ground for Firms
Date: Tuesday , March 02, 2010
Due to the recession of the last two years, most IT companies have seen significant revenue decreases. Smaller outfits have either gone under or struggling to sustain until fresh investments are brought in or the business cycle improves. Start-ups are facing a larger challenge of finding the right VC or Angel to fund their vision. We live in a resource rich environment with every customer slow to initiate projects or very selective about their vendor of choice. The market differentiator is value addition through experience and expertise.
There are three growth areas based on the current spending patterns of the government and industry – Energy and Utility (E&U), Education, and Health Care. All other business verticals are on a slower recovery curve.
Overcoming the market challenges:
Innovation is the age old mantra for entrepreneurial success. Industry focus is the way into succeeding a difficult service business environment – offer greater value as a service provider through your organizational industry experience. I believe that these are the two traits which will help entrepreneurs and service organizations navigate the current environment. In fact these traits have helped us to successfully deliver value to our customers over the years in two business solutions areas- implementation and support of the Oracle eBusiness Suite, and implementation and support service for the Amdocs CRM suite of products. TTS has also made investments in the E&U industry vertical by way of intellectual property driven solutions specific to this industry.
Invest for future growth
Surviving the recession and the protracted recovery period is at the forefront of all of us. It is important for organizations – both start-up and established ones – to invest for the future. Energy and Health Care are two hot areas for future. Both areas of business are experiencing renewed focus on technology and innovations. Trends are emerging on how these industries are likely to invest for the future. This is the time to invest into products and IP-driven services in these industries. Investment is plentiful – selling your idea to the right set of investors will be the ultimate challenge to all innovators and entrepreneurs.
The author is Dr. Anush Ramachandran, the CEO of Teledata Technology Solutions (TTS), Incorporated in 2006 and traded on the NSE and BSE exchanges in India, TTS provides world class services in IT consulting, ERP, CRM, IT Hosting Operations and Specific Industry Solutions