Mid-sized IT company CSS Corp expects to grow faster than the market as a smaller-size and technology investments gives it an edge over larger rivals.
The company, which is majority owned by private equity company Partners Group, revamped its management last year bringing in former Infosys executive Manish Tandon as CEO. The $150-million revenue company is targeting 15% revenue growth this year.
Most of the growth is being created by the changes that the new management has put in place.
“Observing the current environment and the way the services industry is growing with anemic rates, we have taken several strategic measures around creating a flexible business engagement model with our customers,“ said Nishikant Nigam, chief delivery officer at CSS. “If you look at the last two quarters, after quite a few years of stagnant revenues, we are growing 3% sequentially quarter on-quarter and looking at the pipeline, the growth will continue.“
Nigam said smaller companies that had made investments in technology would have an edge over larger players as the newer digital services they could offer had not yet been hit by commoditisation and consolidation.
“With all the changes taking place in the industry and the consumption patterns emerging, it is clear that if you are in the right place, with the right tools, you have a huge opportunity. But if you are seeped into legacy as an organisation and you are still looking for large deals, then there is a strong chance you may struggle,“ he said.
While the larger Indian IT companies get on average about 20% of their revenue from digital deals, the majority of their business is facing cost pressures from clients who want to spend less on IT to free up money for investments.
Cloud technologies, automation and a fast-changing technology landscape have also put an end to multi year mega deals that used to drive their growth. This is unlikely to change, according to Nigam.
CSS Corp is now Movate