Towards outcome-based IT services
Chennai-based Veeras Infotek is reinventing itself to provide IT services that offer customers measurable ROI
Chennai-based Veeras Infotek embarked on its transformation journey in 2012. “We carried out an analysis of how the technology landscape was changing, what vendors were betting on, and how customers’ outlook toward IT was changing,” recalls Sudarsan Ranganathan, CEO, Veeras. “We met up with the CXOs of 70 customer organizations to find out what they expected from us. Customers are increasingly demanding IT on an opex model, and they want IT to drive business outcomes. Based on these trends we have laid out a multi-year transformation roadmap.”
Over the past two years, the company has identified new areas of operations, re-organized the business, focused on re-training people, begun re-orienting people and processes, and started the process of investing in the relevant infrastructure needed to provide new solutions and services.
“Using our CRM we plotted the intelligence about our top 450 customers—their existing infrastructure, growth indicators of the vertical they operate in, their business outlook, profitability, existing processes, etc. Based on that and through continuous discussions, we began mapping the best practices in their segments and how we could help these customers to achieve the best practices using IT with predictable ROI,” says Ranganathan.
Following this exercise, to map the customers’ businesses, Veeras embarked on another challenging task—training the teams. Over the last two years the company has invested close to ` 25 lakh for coaching and training its employees to enable them to have discussions with customers not from a technical or product perspective, but from a strategy and business outcome perspective.
The company then identified four core areas to focus on—business analytics, consolidation and virtualization, cloud services, and security from a viewpoint of compliance and governance.
Plans are also on to venture into managed services, automation and orchestration, and to move deeper into analytics to become a professional services provider. Another area of focus will be cloud aggregation and whitelabeled services on which Veeras plans to build its own IP.
Meanwhile, with a firm resolve to move to XaaS, the company is in the process of implementing the best accounting practices. “We have begun looking at our accounting policies from the US GAAP perspective in order to gear up for a recurring services revenue model
We met up with CXOs of 70 organizations to find out what they expected from us. Based on their in-depth response we have laid out a multi-year transformation roadmap
rather than a billed model,” Ranganathan says.
Veeras has started seeing the benefits of transformation. While revenue over the last two years has shrunk by 7-10 percent, the bottomline has improved by six percentage points. The sales cycle has reduced by 50 percent, deep-selling and cross-selling opportunities have increased, and the deal sizes have also increased.
“The outcome-based IT strategy has ensured increased deep-selling opportunities. Last year 40 of our existing customers gave us business that contributed nearly 50 percent of our turnover,” informs Ranganathan.
The analytics business, according to Ranganathan, has been an ace for the company. “While business analytics is not topline-intensive, it has been an ace for us in our roadmap to outcome-based IT. We executed 8-10 projects ranging from ` 25 lakh to `40 lakh, and all these customers have seen some ROI in the first year itself.”
Over the next two years, Veeras plans to move completely to an outcome-based engagement model with its top 100 customers. Informs Ranganathan, “We have started approaching the top 100 customers with the XaaS model based on business outcomes. Our aim is to convert at least 60 of them to the new model.”
We have started approaching the top 100 customers with the XaaS model based on business outcomes. Our aim is to convert at least 60 of them to the new model
CEO, Veeras Infotek