There is no doubt that IT companies have a huge role to play in helping Pakistan to re-establish its economy and re-invent its image. After all, with the number of verticals that now run at least their critical operations, if not the major chunk of their services on technology solutions, the business efficiency is something worth publicizing. How will IT and ITeS companies survive through the economic crunch? That is the question that's on everyone's mind.
The Business Services Manager at Creative Chaos (Private) Limited, Nawaz took the initiative to rotate a CIO discussion through the company's internal communication system. "How are we going to get through the current economic crisis being the company we are, running the services we do?" Any deliberation that helps us to better assess when and how we, as technology and business professionals, are going to come out of this situation, is a discussion we want to be a part of.
Time for Strategy
Even for Pakistan, there are a range of services that companies offer. A quick glance through the PSEB or PASHA-registered companies, you will find the majority of software development and ITeS companies. With such a strain on outsourcing, what strategies are companies thinking of employing to make ends meet? Raheel Zubairi, Project Manager at Creative Chaos says, "The demand for IT services in the market will not decrease until we keep producing what the market needs. In order to align our business objectives with our IT strategy, I think we need to identify the core recurring requirements from our existing clients, think of a flexible architecture that will help to reduce development cost, enhance our business channels and market who we are on the basis of those strengths."
In any company, the Project Manager is usually the guy who has a pulse on the trends being exercised by a specific customer, so it would be worth your while to listen to their insights. "I believe the cost structure has a strong role to play in the business we get in as a company. Our approach to work and deliveries can really make a difference to get more business."
"Needless to say that these are interesting times," begins Sami Siddiqui, Manager, Business Solutions at the company. Sami was from the population who worked through part of the dot com bust and had a few keen insights to share. "The sales team needs to take the lead, refining the pipeline, identifying core sales resources to manage the short term costs and over heads. The company has to identify profitable customers and relevant resources which will help to support those customers and, in the process, bolster engagement agreements and SLAs placing emphasis on worst case sales cycle." Sami goes onto say that the team should be downsized based on skill, turn-over and ability to manage different requirements so the company can focus on resources that can multi-task. "We need to define a leaner and most effective sales team based on skill set, network and relationship, while retaining niche resources that are critical to business development."
Nadir Khan, a senior PM at the company summarizes the current situation into one phrase: survival of the fittest. But before changing the strategy of the company, Nadir says he would need to have an idea just how long this downward trend will last. "Until the experts figure the answer to that question, I would ask myself the following: Do I want to warm the bench during this period? Am I willing and in a position to take a risk by staying in the game?" Remember, he says, if things are bad now then other people are already out of the game. That, Nadir says, means potentially less competition, which could possibly mean larger profits.
Nadir's list of questions continues. "Keeping all this in mind, should the business scale up and continue its acquisition of assets? Do I currently have any bad or excessive assets that can be offloaded?"
Think like the boss
(don't necessarily act like one)
At the end of the day, the burden of the economy does fall on the CIO. What resources to cut back on or what areas to invest in further. Discussions from all levels of the pyramid help and why shouldn't the entire organization contribute towards the strategies that drive the bottom line? After all, if everyone thinks like the boss, there are greater chances that more people will assume responsibility for making the organization a place that benefits everyone.
And if you have a culture like that, then Nadir Khan can question the purchase of a large or small generator to run the office. "I should have a say in whether or not there my department or I can manage on a smaller generator that uses less fuel." If the CIO employs an inclusive strategy to run the organization, there might actually be more savings than are expected.
Nadir Khan's spirit would inspire hope for any organization in any business. "The best way to stay afloat in troubled times is, believe it or not, to go after more business, a fuller pipeline and consequently make more money. But won't we love getting those rewards during the entire year?"
Umair Aziz, CTO at the company shares his experiences of managing risks and a crunch situation with his other business in the past. "Despite the harrowing situation, the strategy pulled off quite well, and the business is once again in the green." So there is always light at the end of the tunnel and the sun always does come up the next day (unless of course, you're in Finland).
Mohammad Nawaz agrees and adds, "The IT services industry (or at least most of who are part of it) won't be hit by the downturn, especially because we are not 100% dependent on local or foreign demands. We have a wide and expanded market, which is something other industries just can't compete with so effectively. Yet, there are those who just don't care which industry or part of the world they belong to. All they know is that if they bear everything with focus, patience and without flinching even a bit, they will ultimately make it through."
Cost cutting necessarily does not help. From my experience, I have seen that organizations that have cut costs or don't pay their dues on time actually lose out. Not any one strategy can fit every individual company.
Strategies worth believing in
Nadir Khan: hitting with sarcasm says "the best way to run and win a marathon is to run fast at the beginning, run fast in the middle, and run fast at the end"... if only more people thought of this brilliant strategy. The fact is, you need to pace your strategy for a fiscal year, and not exhaust all your resources in one go.
Mohammad Nawaz, Business Services Manager: The sooner we realize that "it's not over yet", the better it is. We need to play our cards strategically correct. Think positive but do more than just thinking. There can only be survivors at the end of this hurricane - those who have the courage and patience to make it through all the tough times and still keep their footing. Surely, those who have braced themselves in the past are part of the top breed of the country.
Umair Aziz: Cost cutting can help but not ensure that a business remains operational through tough times. It's all about Sales and Revenue at the end of the day. I equate it to blood. You stop the flow into the business - you die - sometimes slowly and sometimes quickly. Dying slowly is not better then dying quickly. The key is to make sure that money is being pumped into the business - irrespective of the economy or other challenges a business faces.
Companies that are in it for the long run, know best. People who work and make a significant contribution towards the economic revival of an organization, community or country, know what needs to happen in order to achieve success. That's the kind of environment a CIO needs in order to make the informed decision about what strategies to ultimately execute and bring the greatest impact on the team. Collaboration. Innovation. Openness. That's the spirit and the culture a company needs.
If discussions like these are already happening within companies in the IT sector, we're definitely on the right track.