Dear fellow shareholders,
I am pleased with the performance of Saksoft in 2015-16 for a number of reasons.
Some of the pride-enhancing initiatives will only translate into visible numbers in the coming years. And yet, a considerable underlying traction made the year under review a watershed in our existence.
For the last few years, Saksoft delivered some components in the overall Digital Transformation niche, a space of growing importance. It was only during the last financial year that we were able to finally provide the complete services complement and account for a larger solution ownership for customer benefit. During the last few years, Saksoft strengthened its solutions around the delivery of services related to analytics, digital testing and applications. By adding Cloud and Mobility services during the last financial year, Saksoft is empowered to now provide the complete Digital Transformation solution.
There were two ways in which we could have added the missing complements - one, the longer in sourcing route that would have warranted prudent and timely recruitment, training and retention; two, a partnership-centric approach, whereby Saksoft would engage with external specialists and provide absolutely contemporary solutions to customers from Day One.
Given the backdrop of rapidly evolving technologies, urgency and specialisation, Saksoft selected to partner. The result is that we have engaged with some of the most competent and like-minded corporate partners, providing us with engagement flexibility and responsiveness to adapt to evolving customer needs.
What has been particularly satisfying is that this restructuring is not theory; it is already a reality. This restructuring is not something likely to only translate into future wins; it has already started generating positive traction.
Saksoft generated attractive wins in the last quarter of 2015-16 when our full-service Digital Transformation offering was in evidence. This approach validated our positioning as a company with inch-wide but mile-deep competence, strengthening our brand and recall among prospective customers.
These are some of the realities that excite me about our prospects
- New verticals: The Company reported attractive wins with public sector projects in the UK in the municipality vertical. We are optimistic that after these projects have been successfully completed, the company will be able to showcase its Digital Transformation competence in this vertical and account for a larger share and higher bidding strike rate.
- Project mapping: The projects of around $500,000 represent an attractive niche; too small for larger companies with similar competencies and too large for smaller companies with limited bandwidth, resulting in a sweet spot.
- Digital Transformation partner: Delivery of the complete Digital Transformation scope has been validated by a sharp increase in our strike rate of such projects bid for in the last quarter of 2015-16. The objective is to increase this strike rate through a larger investment in front-end marketing, widening our presence among prospective customers and strengthening our brand as a dependable Digital Transformation partner.
- Large, untapped market: The UK represents a large market relatively underpenetrated by Indian IT companies, an attractive opportunity. With our pre-qualification credentials falling into place through live projects with public sector organizations, we will have a successful showcase to present to peer councils.
What is heartening is that there is a greater consideration being provided for the robustness of one''s global delivery model over one''s cost-competitiveness, which strengthens our ability to deliver a world-class solution without compromising our margins.
Today''s Digital Transformation promise is built around the integration of Social, Mobile, Analytics and Cloud (SMAC) technologies. The synergic ecosystem makes it possible for businesses to enlarge operations and reach with minimal overheads, strengthening competitiveness.
This SMAC typically represents the ''fifth wave ‘of IT architecture and unfolding faster than anything we have seen earlier. By 2020, 100 billion computing devices are likely to be connected to the Web; companies are likely to be managing 50x the data they presently do. Accenture estimates that digital technologies in the world''s top 10 economies can add a combined $1.36 trillion to their GDP by 2020. The inference then is that SMAC will have a multiplier effect on businesses and productivity.
The result is that SMAC will not just address scale; it will replace the longstanding blueprint of value chains to create new distributed and virtualized business models, emerging as the essential building block of a new platform for digital business initiatives.
The Digital Transformation space
The principal point that one need to make is that Digital Transformation is no longer an option; it is an imperative. A number of businesses critically need Digital Transformation for the personalization of content, experience, pricing, recommendation and service; real-time and aware applications need to leverage preferences, insights, context and location; systems or processes need to facilitate deeper customer insights that enhance loyalty and advocacy; an omni-channel approach needs to provide customer choice and flexibility that enhance organizational responsiveness and widen offerings and business models.
There are some remarkable ways in which companies have transformed. Armour has transformed from its popular athletic brand incarnation marketing shoes and apparel; by connecting 38 million people across its digital platform, the company is poised to emerge as a major lifestyle advisor and health consultant.
The Port of Hamburg has fused facility, weather and traffic conditions with vehicle availability, shipment schedules and enhanced container handling capacity 178% - without expanding physical space at all.
Uber is transforming how urban logistics operates through the technological convergence of big data, Cloud and mobile.
Given this landscape and our preparedness, I am pleased to state that Saksoft enjoys attractive prospects.
I am optimistic that this does not just indicate an attractive 2016-17; it indicates the start of a new journey for our company.
Chairman & Managing Director