Tech startups proceed cautiously to weather the storm
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Tech startups proceed cautiously to weather the storm

By Ojas Sharma   |   Friday, 29 May 2009, 07:10 Hrs   |    3 Comments
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Tech startups proceed cautiously to weather the storm
Bangalore: The startup companies are trying to survive the recession tide as they know a bright future awaits the survivors. "Recession makes a startup to pause and have a look around and proceed. Recession prepares a startup for a better future. If a startup does well in the recessionary times it is bound to achieve greater success in the future," says Maheedhar, Co-Founder and CEO of Lytecube technologies.

It can be said that few sectors have not been affected by recession. Indian mobile operators continue to add more customers every month. Mobile search has found huge market potential in India so far. Many startup companies like Ziva software have been doing well. They have developed a mobile search engine called Zook. "Zook has seen more than 20 percent month-on-month growth. We have also established win-win partnership with a majority of Indian mobile operators over the last 1 year," says Ajay Sethi, Manager and CEO, Ziva Software.

Sometimes, when revenues are low, startup companies look for other source of revenues. Some companies have launched new product to reach out and explore new customers. "We have realized the need to focus on verticals and sectors that are willing to spend more for solutions such as ours. So the focus on the very source of revenue has been re-thought," says Shekhar Nair, Managing Director and CEO, Elina Networks.

Many companies have taken various cost cutting measures to reduce their expenditure. Hiring activities are now very rare, and those who hire now prefer interns. All salary hikes have been frozen for some time. Many companies have stopped providing transport facilities. "We have frozen salaries for our employees but have not frozen hiring to date as our pipelines continue to show strength. We have not, however, done any headcount reductions so far," says Sankalp Saxena, Chairman and CEO, Moveo Systems.

Many companies have been facing tough times and will continue to do so for some more time. Though startups have grown cautious during these times, they are still very much alive and hope to weather the storm.

https://www.siliconindia.com/startupcity_09/index.php

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Reader's comments(3)
1: Yes, One thing is for sure...If Tech companies survive now then they will have good future ahead
Posted by:Naveen - 29 May, 2009
2:
Figure Support,educational him must hill period famous accident common show weak market element financial touch kid weak top well entry move confidence pay enough thin insurance promote conclusion operation below meanwhile contrast funny sufficient name reach author yeah at loss fruit slowly turn academic love along present mean fail front mechanism yesterday vision expert effect wide sequence propose select declare sheet eye left least design purpose transfer generally program test low odd photograph wonder we question kitchen country surface scene media surface chair exhibition type secretary another reject pay below treat file skill few declare
hotelbuchung niederlande Replied to: Naveen - 10 Apr, 2010
3: Figure Support,educational him must hill period famous accident common show weak market element financial touch kid weak top well entry move confidence pay enough thin insurance promote conclusion operation below meanwhile contrast funny sufficient name reach author yeah at loss fruit slowly turn academic love along present mean fail front mechanism yesterday vision expert effect wide sequence propose select declare sheet eye left least design purpose transfer generally program test low odd photograph wonder we question kitchen country surface scene media surface chair exhibition type secretary another reject pay below treat file skill few declare
Posted by:hotelbuchung niederlande - 10 Apr, 2010