COVID19: Immaculate planning helps Somnetics minimize business disruption

Kolkata-based SI Somnetics is involved in a host of enterprise application development and support services. While these businesses have not suffered much due to wonderful preparation for a long time, Shantanu Som, CEO, Somnetics informs that the digitization and MPS services have got impacted resulting in loss of 30% of revenues.

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

We were preparing for the current situation in anticipation for quite sometime. Our IT Steering Committee ( as per the requirement of ISO 27001 & ISO 20000-1) met thrice in the month of January and February 2020 to discuss preparedness in the event of a global pandemic is declared for COVID-19. We reviewed current customer requirements and set up priorities. A review of pre-existing infrastructure was made, and gap analysis was done. Emergency purchases were made for filling up the hardware requirement gap.

Residual risk was updated in the ISO 27K risk register. The final BC Plan was released. Customers and on-site teams were alerted about our plan of action in case we experience a lock-down in the coming days. Service Catalogue was updated with revised availability matrix as per ISO 20K documentation requirements.

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

We ensured that the salary payment is made as per schedule. For WFH employees, remote as well as on-site support whenever necessary has been provided. We have also created a reserve for the next 3 months’ salary payment.

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

Several steps were taken on a regular periodic frequency for uninterrupted service:

D-7 days: From the present team members, we created two teams. Team-A will look after the actual deliveries from home, in the event of a lockdown and Team B will provide logistic and IT support services to Team A. Selected members had to go through an awareness program.

D-5 days: Team B went to the homes of Team A members and certified that all systems are ready at home. The security checks were made and they ensured log-ins via VPN tunnels are working without issues. Speed-tests were also carried out.

Mapping and IP binding protocol were activated in the Development servers, testing servers, and deployment servers. This is to add the new MAC ID and IP address of new PCs of WFH developers.

D-3 days: System audit and Final training were conducted with all members of Team A & Team B. Emergency numbers were circulated via printouts and e-mail.

D-2 days: All customers, whose services, support, development, and implementation will be migrated from office to home were made aware of current development. They were provided with nodal contact details and escalation matrix.

D day: WFH went live on 19th March 2020, 12:00 Hrs.

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

Somnetics has three types of activities that could be shifted from office to home. These include Software Manufacturing, IT Services to multiple ERP systems & AS-400 Systems (100% international customers) and IT implementation and software support to Somnetics Software users. (60% international & 40% domestic customers).

For the rest of the business like Scanning and Digitization Services, Managed Print Service, the business has come to halt. This amounts to loss in 30% of our total revenues.

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

The top 3 verticals where we are experiencing traction are Business Process Automation & RPA, E-Commerce and ERP Support.

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

We are well prepared to handle the pandemic up to a period of 90 days lock-down both financially and operationally. If the lock-down period extends beyond that, that we have a plan to pay 50% salary every month and the balance after 60 days. We are not planning for any retrenchment.

The work for home operation and revenues arising out of it will not get impacted.

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

If the situation normalizes within the next 45 days, our situation will be flat ( there will be no de-growth ).If the situation normalizes within the next 60-90 days then we will have 10% de-growth.