COVID19: ETSC Banks on New Business Models to Emerge

Jaipur-based ETSC Computers provides IT infrastructure on-premise or through cloud solutions mostly to Government, PSU and SMB clients. Kailash Gupta, Director, ETSC Computers admits that the situation is grim but expects new business models to emerge out of this situation.

During this COVID19 crisis what are the measures ETSC Computers has undertaken to continue its own business without disruption?  

ETSC operations were already in hybrid mode as all our CRM and mailing systems were already on cloud. Assessing the lockdown situation almost a week in advance, we had moved all our important data on cloud. Just a day before the Rajasthan Government announced complete lock down, we had a special review session to guide our staff on how to operate from home and had handed over necessary devices and guidelines on 21^st March itself.

We had a smooth WFH (work from home) transition due to the above preparedness without any disruption. Of course operations have been limited to back office working only due to lock down of all customer offices and works.

What are the initiatives for your employees and financially what is the impact on ETSC and what are your plans to mitigate them?

During this lockdown period, our first priority is to ensure safety of our employees and their families. We are keeping in regular touch with them using collaboration tools such as Google Suite and Zoom.  On the financial front, as far as the salaries for March 2020 are concerned we have paid in full on 30^th March itself. However with virtually no cash flow and revenue generation, it is going to be challenging both for employees as well as all businesses. We are taking this as an opportunity to upskill all our employees in various online tools and solutions and also to maintain touch with all our customers in these difficult times using CRM.

We have already brainstormed various options during our regular virtual meetings. Subsequently we have already identified focus product lines and customer segments where we can focus and generate revenues in these challenging times. Since work from home is emerging as one of the key requirements of most of the customer, henceforth we will be focusing on all solutions related to this segment.

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

We have been using technology to service our customers remotely.  We have already established customer service engagements. Through Whatsapp and emails, we would be extending all support remotely. We will also be coordinating the same through our principles wherever they are directly supported by them but need our help.

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

Being in an offline go-to-customer model, the COVID19 situation and the lockdown has impacted our operations to a great extent. The entire cash flow particularly from the Government and corporate customers is badly affected. While due to force majeure conditions, we can hope that things will come back to normal only after lockdown is over.

Which are the verticals with maximum traction for ETSC? How has COVID19 impacted business with these existing customers?

Our major clients are Government (GeM) customers, Public sector and BFSI. The major traction is expected in Healthcare, Education and SMB sector for Work from home preparedness. COVID19 has impacted business from existing customers

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

We are already anticipating extended crisis and are planning for at least 3 months contingency. Not only all unnecessary expenses need to be curtailed during this period, there need to be re-working on fixed expenditure too. We will exercise all stimuli available from the Government and banking institutions to meet this contingency. Other than this, we have already devised new and alternative business models to meet this challenge.

What sort of business and financial impact you expect for ETSC’s business as a result of COVID 19? 

Beyond doubt the entire COVID19 crisis will have a huge impact. However our target currently is to sustain. We are confident that with right plans in place, we will be able to not only survive but use this as business opportunity to devise new business models.