Chandigarh-based entrepreneurs engaged in software development for US-based business conglomerates have been able to insulate themselves from the financial meltdown.
These units, mostly promoted by technically qualified entrepreneurs, took precautions in the pre-meltdown phase and are now devising alternatives for the future growth.
Puneet Vatsyayan, director, Mobera Systems Private Ltd, said their limited exposure to financial markets and real estate insulated them from the the meltdown. The company that is primarily into the outsourcing of embedded technologies (software for hardware devices, healthcare, communication and software) is now scouting for new markets.
“Our US-based business has not been hit by the recession, but we are vigilant. We are exploring opportunities to make sales channels in Europe and in Japan.”
Vatsyayan, who spent over a decade in Silicon Valley before starting his venture in India, added that tremendous potential exists in Europe and Japan. Till now, these economies did not favour outsourcing. However, to trim their expenses they plan to turn towards India.
“Europe is my growth driver as they will be aggressive in controlling their costs. Japanese cost structure is also high,” he added.
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Vatsyayan, however, was senstive to the fact that overall growth might be effected. “My growth target was 70 per cent in 2008. It has been scaled down to 50 per cent for 2009,” he said.
Pratap Aggarwal, managing director and CEO, IDS Infotech Ltd, said there was no dearth of orders. “Our clients are based in the US and Western Europe. We plan to focus on existing markets.”
Aggarwal expected at least 20 per cent growth in his business. Harshvir Singh, director, Drish Infotech, said current orders had not been effected but they were planning ahead. Drish Infotech provides web solutions and medical subscriptions to US-based companies. The firm is also planning to tap the Indian market.
Singh said he expected 15 -20 per cent growth in the firm’s overseas business this year as compared to 50 per cent last year. “There are business opportunities in domestic markets in the field of web applications, ERP (Entreprenuer Resource Planning) for manufacturing , service and educational institutes and CRM (Customer Relationship Management).
The small IT companies in Chandigarh did not resort to any lay offs during the current recession in the global market. Fresh hiring has been frozen. However, entrepreneurs expect to grow due to the competitive edge in the global market.