COVID19 Crisis: Digital Transformation Strategy Pays Off for Insight

Insight Business Machines focuses on solutions and services on infrastructure and the SMAC (security, mobility, analytics, cloud) stack. Established in 1992, this Mumbai-based SI is even offering ease and secure WFH solutions. Neel Shah, Chairman & MD, Insight Business Machines provides the details and also how the company is geared up for the COVID19 challenge.

During this COVID19 crisis, what are the measures Insight Business Machines has undertaken to continue its own business without disruption? 

We, being an IT System Integrators (SI) and Allied Services Organisation, regard our employees as our prime asset. So, to take care of their health, safety, and skill management, we have created an Incident management team named “Insight C19 Taskforce” (C19TF) and empowered the team to take tactical decisions and escalate essential issues to the board level. This team daily monitors the health of the entire Insight Family. The C19 task force also helps the technical team to uplift their skill levels by nominating relevant webinars and training schedules.

What are the specific initiatives for the employees?

The Insight C19 Taskforce that has been created ensures that they virtually reach out to every Insightians at least once. C19TF daily runs a continuous awareness of COVID-19. They also counsel employees about traing and skill upliftment programs. Over and above the skill upliftment certifications and training program, we are also running a campaign called “Make your Hobby work during the lockdown” on Our Facebook and other social media pages.

What has been the impact on Insight Business Machines financially and what are your plans to mitigate them?

The financial impact has been two-fold. The inward Cash flow has completely dried out, and there is no visible concrete forecast on the realization of our overdue receivables. Nevertheless outflow is unstoppable in terms of already issued PDCs, statutory payments  like GST, PF, ESIC, PT, TDS and the salaries of employees.

We are devising multiple plans to mitigate financial risks. These include reviewing cashflow forecasts, keeping a close eye on AR and reaching out to our customers on the visibility of payment against outstanding and overdue, identifying the cost reduction levers available to improve the liquidity position and running contract reviews, including assessing impacts of Force Majeure or Pandemic clauses. At the same time we are also requesting extended payment terms from our Vendors (both OEMs & Distributors) and requesting our Bankers to extend our credit limits with the reduction in RoI and minimum 9 months moratorium on interest payments.

What are the measures and initiatives taken to ensure uninterrupted service for customers? 

The remote support team from our NOC & SOC is assisting the customers in setting up and support their business continuity plans.

We are helping clients to plan and restructure requirements, particularly during high levels of illness/absence periods. We are also helping them to develop and support the implementation of approaches and tools to enhance employee engagement and remote working. And last but not the least, we are securing newly implemented or scaled remote working practices and ensuring the continuity of critical security functions.

Insight C19 Task Force is also delivering continuous telephonic and remote support on a 24×7 basis from home. The team members of Insight C19TF are also onsite at a few customers as we are managing IT for many esteemed customers majorly falling under the “essential services category.”

What are Insight’s business and operating models? In light of the COVID19 crisis, how has this model got impacted? 

We have multiple business model simultaneously working as a driving force, which helps us to evolve as a strong Technology Partner for customers. We can work alongside client to tackle the challenges they face in responding to COVID-19.

As Managed Services & Security partner, we work with most of our customers to help them managing their IT infrastructure in Secure manner. This model will flourish in coming days and fetch us more revenue.

As a Cloud Managed partner, we work with customers, helping them to migrate and manage their data in the hybrid cloud scenario. I see more and more customer adopting Hybrid Cloud for their major application.

As System Integrators, we work on a turn-key project with our customers which are typically IT Infrastructure consolidation or expansion projects.

In both scenarios, the physical moment of equipment is necessary. But because of the COVID-19 outbreak, the logistics of ordered hardware got jammed, and so are the project deliveries. This business model will have little adverse impact with delayed payment cycles and the cashflows.

Which are the sectors you witness maximum traction? How has COVID19 impacted business with the existing customers?

Our primary customers are from manufacturing, media & entertainment, finance, and government. As I stated earlier, because of delay in project delivery, the billing got postponed to the new financial year resulting in a big dent on the revenue and P&L of FY19-20.

What are the contingency plans you have put in place if this crisis persists or gets escalated? 

We have started enabling employees to work remotely and reinforcing our IT infrastructure to support these arrangements. We also started working on GTM around emerging sectors like e-commerce, healthcare, food processing & retail, medical supply services. We will focus and invest more in remote management, NOC & SOC services. We also started aligning our businesses around cloud security and management. This is indeed a dangerous time, and we will have to keep calm, re-work on the business basics, and optimization of resources.

What sort of business and financial impact do you expect for Insight Business Machine’s business as a result of COVID 19? 

From our business perspective, I strongly see the result of Covid-19 in two part

The initial jerks: The dramatic spread of COVID-19 has disrupted lives, livelihoods, communities and businesses worldwide. Consider what happens not just today, but tomorrow and beyond… Let me be realistic that this is not the end. Our own business continuity, data management and security will emerge as pain in the head. The questions are many like; Will everything will be alright on 14th April 2020? Will business be as usual, will operations start in full swing or phase-wise manner, and will people be able to resume immediately? The rise in the dollar, production constraints, and delay in supply will further adversely impact the cashflows and P&L.

Long term Stability: The adopted digital transformation strategy of the last three years has given a solid foundation to our Business Continuity. Focused approach on hybrid cloud had further strengthened our business operations. Our operations and service delivery teams are fully charged to face this pandemic situation and ready to delivery customer commitments in all possible manner. Our sales and pre-sales teams are utilizing their time in strategic business planning, sharpening their knowledge base and to keep in touch with their set of customers on their business continuity plans. This approach will bring new revenue streams to stabilize our business in the long run towards FISCAL 20-21.