This is a dramatic time for technology. Old paradigms are being challenged and new standards are emerging. In this rapidly changing scenario, it is now possible to ask questions of a smartphone that generates voice-activated answers: ‘hire'' the services of a robotic home-cleaner or even market products through social media at virtually no cost. One can get real-time information on freight movements using a smartphone and we are better positioned to provide an enhanced customer experience by analyzing buying patterns. Additionally, SMEs are able to scale operations at a significantly lower cost through the Cloud.
What makes these realities exciting is that they are no longer limited to a few pockets; they are sweeping across our world.
As this revolution accelerates, they will transform the way we think, live, work and unwind.
This scenario poses an unprecedented threat to conventional thinking; on the other hand, this reality offers an unprecedented opportunity to the nimble.
For the latter, which includes technology companies like Saksoft, the time starts now.
An unprecedented opportunity
The window would not be compelling if it were only about a shift from status quo.
This opportunity is about a unique convergence: the concurrent fusion of some of the most remarkable technologies compressed within a brief time-frame leading to dramatic change.
The size of the cake is staggering.
It would be fair to state that the opportunity for Saksoft on the technology front would be vast and boundary-less in the years ahead.
Evolution in the customer environment
For companies like Saksoft, the attractiveness of the opportunity is being derived from different ways in which customers are responding.
There is a greater customer willingness to work with specialists than generalists. There is a wider recognition that customers, who once played safe in their selection of IT vendors and worked only with the large and branded, are now willing to trust mission-critical assignments to the smaller and specialized.
There is a greater traction among large companies in seeking solution providers who can deliver a superior return on IT spending, a visible payback for technology expenditure.
There is a wider suite of digitalization solutions that need to be delivered today, comprising interventions in the areas of social media, mobility, Internet of Things, Cloud, Artificial Intelligence, Robotic Test Automation and Blockchain.
Projects are becoming shorter due to fast-changing technologies and acceptability of the ''agile'' methods of execution, warranting focused teams and disciplined project turnaround.
The complement of these realities is not only enhancing sectoral excitement; it is also creating one of the most challenging industry landscapes demanding unprecedented responsiveness.
Inch wide, mile deep philosophy
At Saksoft, we believe that we are present at a sweet spot in being able to capitalize on this unprecedented sectoral phenomenon.
We are bringing to this sweeping opportunity a relevant business model.
At the heart of Saksoft lies an ''inch wide and mile deep'' positioning.
We possess a niche competence and within this niche we possess a capability that ranks among the best among companies of our size and relevant to the nature of customers we intend to address.
The buzzword within the IT sector is ''agile''; there is a premium on the need for an agile team, for an agile turnaround and for agile solutions development. By the nature of the description, the word ''agile'' indicates a service provider that is not large, sluggish or unwieldy; it indicates a company that is fleet-footed, nimble and responsive. This is precisely the kind of company that Saksoft is and expects to remain.
The extension of agility is flexibility. There is a greater need for companies to ramp up or down with speed in line with customer needs. There is a greater premium to be paid for technology solution providers who transform with speed to market changes. At Saksoft, we believe we are flexible to customer needs, which is one of our biggest calling cards.
A challenging business environment warrants holistic project quality -completed on schedule, delivered right first time, helping customers reduce costs and helping enhance customer delight. At Saksoft, we do not just deliver an enhanced return on IT spending; we help customers enhance an overall Return on Investment that is a measurable evidence of our solutions effectiveness.
And lastly, there is a greater need for technology partners to ''own'' the business of their customers and assume a responsibility in enhancing competitiveness. This capability is derived through a combination of business processes and technology understanding. At Saksoft, we have developed a reputation for delivering beyond the promised, translating into customer delight, stickiness and onward business references.
At Saksoft, we were fairly mixed in our feelings about our performance in 2017-18.
The Company reported profitable growth - 10.16% increase in our revenues was corresponded by a 21.47% growth in post-tax profit. The positive break in our performance was reported in the third quarter of the financial year under review, when revenues grew 11.25% while our posttax profit strengthened 32.09% over the immediate previous quarter.
At Saksoft, we believe that we are at the cusp of robust sustainable growth.
During the last few years, the Company strengthened its business model through complementary acquisitions.
Saksoft acquired 360Logica in 2014 and its testing services business performed commendably. Saksoft acquired Dream Orbit Softech, a Bengaluru-based IoT specializing company addressing the logistics domain, in December 2016. The Dream Orbit acquisition enhanced our competitive edge around service offerings, enhancing up-sell and cross-sell abilities in the logistics sector. The acquisitions delivered Rs.44.40 crore in revenues in 2017-18.
I am pleased to report that the acquired companies were integrated into the Saksoft way of doing things and began to deliver in line with the overall projected value proposition.
Saksoft is attractively placed to capitalize on the prevailing opportunity for another good reason. The Company addresses customers with revenue sizes ranging between US$200 million and US$5 billion ; companies below this revenue size do not generally possess adequate technology spending budgets; companies larger are typically process-driven Tier1 and Tier 2 companies where the scope for an outperforming service provider like Saksoft is constrained.
We believe that companies that belong within this revenue range need solutions that extend beyond the structured defines of a contract; they need partners who are driven more by the passion to make a positive difference as opposed to companies that are inflexible to evolving realities; they need partners who are entrepreneurial enough to strengthen the business of their customers instead of merely ticking the boxes of deliverables; they need partners who will invest 100% attention and enhance delivered value.
At Saksoft, we are such a company.
We are driven by the passion of making a difference, translating into repeat engagements by the same customers, capturing a growing share of their wallet, while widening this presence to new customers in existing domains and geographies.
At Saksoft, we believe that the building blocks of the next phase of our growth are in place.
We stand at the cusp of an inflection point that should translate into enhanced value for all stakeholders of our company.
Our time starts now!
Thank you for your continued support.
With my best wishes,
Chairman and Managing Director