Achieving a Flawless Customer Experience is a Myth in Our Industry: Anuj Gupta, CEO, Hitachi Systems

In an era where customer experience is the linchpin of business success, the IT services landscape is evolving at a breakneck pace. In this exclusive intervinterview Anuj Gupta, CEO of Hitachi Systems India, highlights intricacies of customer expectations, the challenges of technology evolution, and the strategic moves that have propelled Hitachi Systems to the forefront of the industry

In the evolving services industry, customer experience has become crucial for business survival. What expectations do customers have from IT service providers?

In the realm of system integration and channel partnerships, technology is evolving rapidly, encompassing cloud, AI, cybersecurity, and IoT. Customers are exploring containerized modes, embracing no-code applications, and optimizing resources with solutions like GPP. The challenge lies in customers struggling to adapt to these evolving technologies, which can potentially disrupt or destroy their businesses. Similarly, partners are grappling with the pace of skill development required to keep up. To navigate these challenges, it’s essential to work transparently with customers, moving beyond a mere supplier role. Collaboration on significant projects and a commitment to mutual learning form the basis of evolving together. In an environment where there’s no perfect partner or customer, agility and continuous adaptation are key. Aligning multiple vendors and OEMs and working cohesively with customers during these challenging times require a focused and relevant approach. Survival in the ever-changing landscape demands not just adaptation but also a strategic shift in relevance. Additionally, investing in skilling people emerges as a non-negotiable necessity for all involved in the industry.

Over the last few years, how has your organization expanded its solution offerings to incorporate emerging technologies?

The landscape of emerging technologies is dynamic, with what was considered emerging six months ago becoming mainstream today. Recognizing this, we undertook a comprehensive review of our organization in 2021 when I assumed leadership. We formulated three pillars to drive our business forward. First and foremost, we recognized the significance of cloud computing in its various forms: on-prem, hybrid, and fully on-the-cloud. We established a dedicated Cloud Business Unit (BU) with focused teams, fostering partnerships with industry leaders such as AWS, Azure, and Google. The goal was to create a separate entity for cloud services, distinct from traditional on-premises services, which proved to be a successful strategy. Presently, our Cloud BU boasts a team of 150 professionals, engaging in hybrid use cases, particularly in sectors like banking and manufacturing.

The second pillar involved a strategic emphasis on the future role of applications. We identified that applications would be central to businesses, prompting the creation of a robust practice in Application Performance Monitoring (APM) and AI Ops. This involved partnering with entities like Dynatrace, Heal, Cisco Appd, and Unite. With a dedicated team of 100-150 professionals, this practice has seen substantial investment over the last 18 months, yielding positive results.

The third pillar is in an area that is particularly close to my heart – cybersecurity. Drawing from our 22-year expertise in this domain, we have a focused offering through our Security Operations Center (SOC) and Risk and Intelligence (RI) services. This entails aligning with key Original Equipment Manufacturers (OEMs) to build a comprehensive suite of services around their products. Recognizing the evolving threat landscape, our approach is service-centric rather than merely product-oriented, addressing challenges posed by AI-driven attacks and defenses.

Furthermore, we restructured regionally, focusing on key sectors like Banking, Financial Services (BFS), IT, ITES, manufacturing, and government in the north. In the south, we targeted significant software development houses and a burgeoning cloud and startup ecosystem. Integrating these specialized services with our traditional System Integration (SI) business, we embarked on a strategic go-to-market approach. While it’s been a challenging journey with more investment than recovery thus far, I am optimistic that in the next two years, these initiatives will set us apart in the market.

How has your organization excelled in delivering customer experience? And how has your customer experience initiative contributed to customer acquisition and overall business growth?

In our line of business, delivering a superlative customer experience is challenging, akin to a delicate relationship where one glitch can overshadow multiple successes. Therefore, we acknowledge that achieving a flawless customer experience is a myth in our industry. Instead of promising the unattainable, we focus on setting realistic expectations and standing firmly by our customers.

Our commitment revolves around being available 24/7 to support our clients. While we may not have all-encompassing solutions for every problem, we assure our clients that we stand shoulder-to-shoulder with them. Our goal is to minimize business disruptions in the event of any issues. By taking this approach, we have been able to build a reputation for reliability and commitment.

Setting clear expectations is a key strategy, ensuring that disappointments are minimized. Our dedication is visible from the leadership down to the operational level. If there’s a critical issue, the entire team, including myself, is on-site, even during non-standard hours or holidays. We’ve demonstrated this commitment on occasions like Diwali, where I personally accompanied the team to resolve an issue.

By being transparent about what we can deliver and consistently demonstrating commitment, we have seen positive results. While we don’t claim to be the best service provider, we assert that we are a reliable and committed one. This approach has resonated well with our clients, resulting in customer satisfaction and business growth. Our sustained growth over the last two years and the acquisition of key customers can be attributed to this strategy of setting and meeting realistic expectations.

Could you share specific initiatives or investments your organization has made in employee reskilling and upskilling, and how these efforts have contributed to your success?

Navigating the challenges of reskilling and upskilling is among the most demanding aspects of today’s market. A significant issue is the reluctance of many individuals to engage in continuous learning. In India, there is a prevalent sentiment among some that they already know enough and don’t need further education. Managers often pass the responsibility of staying updated to their subordinates without realizing that failing to upgrade their skills may jeopardize their job security in the near future.

I emphasize the importance of relevance; having 15 years of experience may not be sufficient if the technology you are experienced in becomes obsolete. I often use the analogy that one needs to be as relevant as today’s technology. We identified five key areas for investment and skill development: cybersecurity, APM, cloud computing, database management, and open-source technologies. Aligning with key OEMs in these areas, we focused on reskilling our employees. While we faced challenges, including the preference for remote work, we believe that deep specialization is crucial in the current environment. It’s a tough journey, but being a specialist is more valuable than being a generalist.

What strategies do you believe are vital for channel partners and IT service providers to remain resilient and successful in this ever-evolving scenario?

In the Indian context, there has been a significant influx of global OEMs, resulting in an increase in hiring and field interactions. The technology spectrum has also expanded. In this scenario, it is crucial for channel partners and IT service providers to carefully choose their partnerships and services to build. The ecosystem has become more complex, with challenges such as wrong commitments and misinformation leading to difficulties for partners.

To address these challenges, partners should collectively align with OEMs to avoid detrimental commitments that can harm their reputation and financial standing. Cooperation and coexistence among partners are also crucial. The current environment necessitates creating platforms where partners can collaborate transparently, acknowledging their respective skills. This collaborative approach, where partners pool their strengths to address specific business needs, can be the future of the channel ecosystem. It’s about becoming specialists in certain areas and forming partnerships with other specialists, fostering a collaborative and transparent ecosystem.

Could you provide insights into your India footprint and recent business accomplishments over the past 18 to 24 months?

Over the last two years, we have experienced significant growth, closing at around Rs 1800 crore last year and projecting Rs 2500 to 2600 crore in revenue this year, with a healthy bottom line. Our workforce has expanded to nearly 2000 employees, operating across offices in India, Southeast Asia, and the Middle East, all under my purview. While our success is notable, it’s essential to recognize that it stems from a buoyant market. Customers are actively investing in various areas, including storage, cloud, and cybersecurity, with order values that, in my entire career, I haven’t encountered before. The market conditions appear favorable for the next two years as well, especially with a potential digital push from the government post the 2024 elections.

However, it’s crucial not to become complacent during this period of growth. Rather than assuming our success is solely due to our efforts, we are using this time to introspect, build skills, identify profitable areas, and strategize for the future. At Hitachi, our approach is to plan proactively. We’ve concluded the dreaming phase, determining what we want to achieve, and are now entering the creation phase for the next two years. Our subsequent goal is to inspire our entire customer ecosystem about what we can deliver. It’s a holistic strategy that involves continuous planning and adaptation to the evolving market.

What are your key focus areas and expansion plans for the next two to three years?

While emerging technologies are gaining attention, we recognize the ongoing investments in foundational technologies like servers, storage, and cybersecurity. Hence, we maintain focus on Business as Usual (BAU) initiatives, which have been instrumental in our current success and will likely continue to be for the next two years. Simultaneously, we are creating separate business units (BUs) with dedicated teams for cloud, application performance monitoring (APM), and cybersecurity. The intention is to invest and scale these BUs strategically, ensuring their profitability over the next few years, eventually integrating them into the BAU structure. This approach allows us to balance the immediate needs with long-term strategic goals, ensuring sustained growth and adaptability to changing market dynamics.