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COVID19: Techgyan Looks to Adjust Growth Roadmap

Mumbai-based Techgyan is one of the premier Microsoft partners in the country. It offers managed services and cloud-based solutions mostly on Microsoft technologies. Suresh Ramani, CEO, Techgyan informs that while existing customers continue to be serviced remotely, an impact on new business could curtail some of the company’s ambitious growth plans.

 

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

 

By February end as we saw things unfolding, we quickly set up a team who was given a task of coming up with a framework of ” Work From Home”.  There was a simple task.  We all had to assume that post March 10, we will have to shut down office for an extended period. So how will we be able to continue supporting our customers? That helped us prepare for what was to follow as we had a “Work From Home” reference framework on hand. We have documented the same here  so that it can be useful in future contingencies too.

 

In practical terms, we implemented a slew of measures. We allocated company laptops to almost all employees, especially those in services team. Every morning our services team has an online meeting where they refer to the support cases in Microsoft CRM and discusses escalations and plans for the same.

 

I have an online review every day with team leaders from services ( Support cases; Project Implementations ), marketing ( Marketing Communication ), operations ( Billing + Cashflows), sales (reaching out to Customers for assistance).  We use Microsoft Teams for this. There is an ongoing Communication throughout the day on tasks allocated and feedback on the same. This happens via chat and calling using Microsoft Teams. We have cloud apps for almost all functions. So it is relatively easier for us to access the information we need for decision making.

 

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

 

As I had already mentioned, we have given them laptops so that they can work from home. We have told them that they will be paid in full for now. However, the increments will have to wait.

We expect that we will be able to retain most of our customers for managed services as our team is able to service all cases coming up and customers do give weightage to this aspect.

 

However new customer acquisition will be a challenge. Customer payments will slow down putting a pressure on cash flows. We would go back to customers with a clear value proposition on how they can continue to work effectively from home.

 

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

 

Since almost the full service team has been provided with company laptops, the question of lack of device or applications did not arise. Every single day in the morning, the full services team has a meeting to discuss all issues related to services, be it escalations, new cases, training, everything. All our support tickets are captured in our Microsoft CRM. These tickets come in via Emails or even via Teams Chat.

 

I personally have daily reviews with team leaders on all issues related to routine support as well as project execution. We have regular online meetings with our customers for support issues as well as training on tools like Microsoft Teams.

 

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

 

We are working on Cloud Services in 3 areas primarily Collaboration, Security and DataCenter.

Our revenue sources are from

 

Existing Customers

  • Recurring Managed Services
  • Recurring Licensing revenues
  • New Projects. One Time

 

New Customers

  • New subscriptions and Managed Services
  • New Projects

 

We were on a growth mode for past 12 months. We increased office space as well as head count by 80% in anticipation of growth from new initiatives like security and data center. We do expect that we will continue to sustain the recurring managed services and licensing revenues from existing customers. However there is a question mark over new projects and businesses from new customers as everyone is examining their cashflow at this point in time.

 

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

 

Our Top 3 Verticals are Financial Services, Manufacturing and Professional Services like Lawyers and CAs.

 

The manufacturing sector will be impacted the most and we are bracing for a slowdown. The other two sectors we see an uptick as the concept of work from home is doable. So we are looking at downsizing from manufacturing sector.  This will be in terms of reduction in head count which will in turn result in lower revenues from subscriptions. For financial services and professional services, we expect that we will do more work in the area of security as the teams will move to work from home.

 

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

 

All of us have limited cash flow buffer. So if the crisis persists, then we will have to scale down our head count to what it was a year back. That would also mean looking at giving up new office space we had taken 9 months back as part of our growth plans. Once we reach that level, we can sustain for a much longer time based on our projected cashflows.

 

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

 

As explained, we may have to scale down to what we were a year back. That would mean a loss of one year. COVID will make us adjust our growth road map. But once we ride through this Storm, we hope to emerge stronger than ever.

 

“Tough Times don’t last. Tough people do”

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