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OMNITECH INFOSOLUTIONS: Migration To Enterprises
 
This Mumbai-based end-to-end solution provider discontinued home and SOHO business and trained its sights only on corporate and government verticals, which resulted in a 14% turnover growth.
 

 
Monday, September 20, 2004

 

Atul Hemani,
DIRECTOR

PRODUCTS AND SERVICES: Data center, networking, communication, framework services, Linux and Citrix-based solutions, server consolidation, asset management, data recovery
EMPLOYEES: 250
BRANCHES: 3
ADDRESS: B/305, Byculla Service Industries, 
Sussex Cross Road, Byculla (E), Mumbai 400027
TEL: 022-23770024-27

STRENGTHS
l Gained access into government segment after empanelment as DIT-approved turnkey solution provider
l Leveraged on symbiotic local partner relationships for post-sales service
WEAKNESS
l Unable to establish footprint in overseas markets, which contributed only 2% to topline growth
l Grew organically with the industry, missing opportunities in some key verticals like ITES

Omnitech Infosolutions crested the organic industry growth to increase its agency revenues from Rs 44 crore in 2002-03 to Rs 50 crore the last fiscal. Software and services contributed 22% to the overall business, while systems integration and deployment made up the rest.

One significant project deployed by the company was the implementation of core banking infrastructure for 13 branches of Kotak Mahindra Bank, valued at RS 9.5 crore. It bagged another project worth Rs 50 lakh to execute integrated backend solutions for a state transport body, deploying a common network for 243 depots in 300 locations. It networked 44 depots in the first phase and is currently in the second phase of deployment.

Though the SI added 40 new personnel in its three branches at Mumbai, Delhi and Bangalore, it relied on a unqiue symbiotic channel partnership to managed its national business. It aligned itself with partners in 78 locations and recruited almost two people in the channel organization on its payroll for servicing its local deployments. This was a win-win situation for both, Omnitech and the partner. The former did not have to invest in logistics at several places and the latter was assured of up to 30% service remuneration from the SI.

Omnitech focused heavily on verticals like BFSI, manufacturing and services last fiscal. These three contributed 55%, 23% and 12%, respectively to the company's overall revenues. It also started offering turnkey solutions to the government segment, which chipped in another 8%.

To get a firm foothold in the government segment, Omnitech got the Department of IT (DIT) approved Turnkey Solution Partner empanelment for B2 and C2 categories. This means it can participate in closed tenders floated by government institutions and is also the preferred turnkey solution provider for this vertical.

Having an ISO 9001:2000 certification helped Omnitech get three overseas projects, but these gave a barely visible 2%  contribution to its topline growth. The company is now trying to establish an international footprint by bringing business continuity plans and BS1500 standard methodology to the table.

It migrated totally from home and SOHO business to catering to corporates and government verticals.

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