In this exclusive interview, Ajay Sawant, Managing Director of Orient Technologies, delves into the significant disruptions faced by the IT services industry in recent years and the agile strategies employed by Orient to ensure uninterrupted business operations. In an in-depth interaction with itVARnews, he shares insights into the pivotal role of hybrid support, the evolution of customer demands, the influence of cloud services, and the strategic incorporation of emerging technologies. Ajay also sheds light on the organization’s customer-centric approach, workforce upskilling initiatives, and the key factors driving their business achievements.
How would you characterize the most noteworthy disruptions you’ve observed in the IT services industry in recent years? Can you provide exampl22es of how your organization adeptly navigated these disruptions, ensuring uninterrupted business operations?
Orient has a rich history spanning three decades, during which we’ve weathered numerous disruptions—ranging from Y2K and the dot-com boom to the financial crisis. However, none were as impactful across all facets as the recent COVID-19 pandemic. The pandemic, a threat not just to business but to human life, stands out as the most formidable disruption.
The challenge posed by the lockdown during the pandemic was unprecedented. For the first time in our history, we faced restrictions on leaving our homes, presenting a substantial challenge for a service-oriented organization. Balancing the health of our employees with the imperative to support our clients, many of whom had transitioned to remote work, was a complex task. With travel restrictions in place, providing on-site support became a logistical challenge.
In response, we swiftly pivoted to delivering managed services through our Network Operating Center (NOC) and embraced Remote Infrastructure Management. This marked the inception of a hybrid support culture. In a hybrid support system, critical on-site interventions, such as changing parts or spares, require physical presence. Simultaneously, we leveraged our NOC to provide remote support, bridging the gap and ensuring comprehensive assistance to our clients.
This strategic adaptation allowed us to continue delivering robust IT services while safeguarding the well-being of our employees and meeting the evolving needs of our clients, even in the face of unprecedented disruptions.
How have you observed customer demands evolving over the past few years?
Traditionally, most customers hesitated to grant access to their infrastructure for remote connections or support. However, the landscape shifted dramatically during the COVID-19 pandemic, compelling organizations to reevaluate their stance. Faced with travel restrictions and an urgent need for support, clients began embracing remote assistance, particularly in critical areas like data centers and networks supporting remote work.
Recognizing this shift, our organization swiftly adapted, taking remote control of systems to address the challenges users face, whether in centralized data centers or dispersed home offices. The acceptance of remote support during the pandemic laid the foundation for a popular hybrid support system. Post-COVID, this model has not only endured but has become a permanent fixture in our service offerings.
This increased acceptance reflects a broader trend where clients appreciate the agility and effectiveness of remote support, resulting in a secure and efficient hybrid support system. Our commitment to meeting evolving client expectations extends beyond the pandemic, ensuring that we continue to provide robust and secure hybrid support solutions.
Considering the current scenario, what is the prevailing mode of acceptance? Is it still leaning towards a hybrid model, or are customers expressing a preference for increased physical presence?
In the current scenario, there has been a notable shift towards the acceptance of hybrid support. Even as employees return to offices, there is a continued acknowledgment and acceptance of hybrid support, encompassing both remote and on-premise assistance. However, when it comes to scenarios demanding physical intervention, such as break-and-fix situations, on-premise support remains a necessity with no alternative.
From your perspective, how has the role of cloud services influenced the reshaping of IT service delivery? Could you share your insights and experiences in this regard?
Over the years, there has been a significant evolution in the acceptance of cloud services among customers. Initially, it was often confined to experimental and developmental work, with production work predominantly on-premise. However, there has been a paradigm shift with a substantial number of customers hosting both development and production workloads on the cloud.
This acceptance of cloud services has not waned, even post-COVID. Our organization actively engages in providing a variety of services on the cloud, all of which are executed remotely. Cloud services offer a unique advantage in their remote accessibility. Whether it’s optimization services or security services, encompassing DevOps, FinOps, and SecOps, we ensure these are seamlessly delivered, offering financial visibility to clients regarding their cloud billing. This trend has witnessed substantial growth over the last three years and continues to expand.
How has your organization expanded to incorporate emerging technologies in the last two years in your solutions portfolio?
In the past two years, we’ve strategically adopted various tools and technologies to enhance our remote infrastructure support capabilities. The critical aspect here is ensuring the security of customer data while comprehending their infrastructure solely through logs. We meticulously shortlisted and developed proficiency in specific tools, training our resources to optimize their usage. This strategic move has resulted in a substantial increase of 15 to 20 percent in revenue, particularly in cloud services and on-premise services delivered remotely.
How has your organization excelled in delivering exceptional customer experiences, especially by infusing a human element into your online services?
Customer experience holds immense significance in the service industry, and recognizing the human aspect in our interactions has been a cornerstone of our approach. Even in remote support scenarios, where physical presence is absent, our service delivery managers play a crucial role. They maintain continuous communication with customers, understand their expectations, and strive to enhance service levels. This personal touch has instilled confidence in our customers, assuring them that their concerns are heard. The consistent efforts of our service delivery managers have significantly contributed to an improved overall customer experience, positively impacting customer acquisition and fostering business growth.
Could you discuss the investments or specific initiatives you’ve undertaken to reskill and upskill your team, considering the shift towards online service delivery?
Investing in tools and technologies is a crucial aspect, primarily considered as a capital expenditure (CAPEX). However, the more challenging part lies in operational expenditure (OPEX), particularly in reskilling and upskilling the team to effectively manage the evolving technological landscape. Unlike CAPEX, where you acquire tools and technologies, OPEX involves training new and existing personnel to handle complex infrastructure. The retention of skilled individuals becomes a significant challenge, especially as their market value increases post-certification. To address this, beyond financial incentives, we’ve invested heavily in cultivating a positive organizational culture and environment. This includes fostering a sense of belonging, which has contributed significantly to retaining our talent despite the prevalent industry-wide challenge of attrition.
Can you provide more detailed insights into the specific investments made for reskilling or upskilling?
Our CAPEX primarily focuses on tools, essential for remotely managing customer infrastructure, applications, and databases. However, the major OPEX investment involves people – identifying the right individuals, hiring new talent, and upskilling existing staff. The significant cost elements in this process are hiring, training, and retaining personnel. This is further complicated by the current trend where individuals often receive lucrative offers from global System Integrators (SIs). To attract and retain talent, our HR strategies go beyond monetary incentives. We emphasize the detrimental impact of odd working hours on long-term health, and simultaneously, we’ve fostered a culture of rapid career growth. Besides technological upskilling, we sponsor MBA programs and project management courses, creating a holistic approach that not only enhances technical skills but also promotes team management and project leadership capabilities. This multi-faceted approach has proven effective in ensuring customer satisfaction and sustaining organizational growth.
Could you elaborate on your global and India footprint, detailing your business achievements over the last 18 to 24 months?
From a domestic perspective, our presence spans across India, with offices strategically located in Mumbai, Pune, Ahmedabad, Bangalore, Chennai, Delhi, Gurgaon, and Kolkata. Internationally, we have offices in Singapore. In the realm of remote or hybrid business models, geography should ideally pose no boundaries, enabling us to provide support to customers worldwide. However, challenges arise in terms of working hours and language. These challenges are particularly prominent in some countries where accents or local languages present hurdles. While English may be a common language, accents and local languages in specific regions can significantly impact communication. This accent challenge is notable in certain countries, even though English is spoken.
Over the past 18 to 24 months, we have experienced notable growth, witnessing a 15-20% increase in services revenue. Our proficiency in providing excellent support has not only led to customer satisfaction but has also resulted in technology orders as customers refresh their technologies. This has translated into significant revenue growth. The investments made in tools and technologies have proven worthwhile, leading to customer retention and the acquisition of new customers. In terms of new additions, we have welcomed approximately 22 new logos in the past year, indicating a robust expansion of our clientele. This success can be attributed to our commitment to providing top-notch services and staying technologically relevant in a dynamic market.
Looking ahead, what strategies would you recommend for channel partners and IT service providers to remain resilient and successful in the dynamic IT services marketplace?
To thrive in the evolving IT services marketplace, it’s crucial to shift from being just a product seller to a comprehensive solution provider. Moving credentials towards becoming Managed Service Partners (MSPs) or Cloud Service Providers (CSPs) is essential. This transformation distinguishes you in the market, as there are few System Integrators who have transitioned from traditional roles to the dynamic landscape of MSPs or CSPs.
For Managed Service Providers, services like Backup as a Service, Disaster Recovery as a Service, and Device as a Service have gained significant popularity. On the cloud services front, the focus is shifting towards Security Operations (SecOps) and Financial Operations, indicating an increased emphasis on security and financial aspects within the cloud services domain.
Please share insights into your top focus areas and expansion plans for the future.
Our key focus areas for the foreseeable future include Business Intelligence, encompassing analytics, along with Robotic Process Automation (RPA) and Artificial Intelligence and Machine Learning (AIML). Additionally, Cybersecurity and Digital Forensic Services will be pivotal areas of concentration. Of course, our commitment to services and cloud solutions will persist, forming the foundation of our expansion plans over the next few years.