Tech startups proceed cautiously to weather the storm
By Ojas Sharma | Friday, 29 May 2009, 07:10 Hrs | 3 Comments
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.
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