How Small & Medium IT companies in India are marketing themselves. How are they surviving? A sneak peek into their company health.

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How IT service companies in IndiaHow IT service companies in India
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Author
Pinaki Pillai - https://in.linkedin.com/in/pinakipillai

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What is holding back Small and
Medium IT services Companies
Study done in a group of Small and medium
IT service companies. Majority of the
companies that participated, belongs to my
dear friends.
I sincerely thank you all for all the support
to do such a study

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What is holding back Indian Small &
Medium IT services Companies
Scenario
Personal survey conducted amongst 72 IT
services companies in Bangalore , Chennai
and Hyderabad
●
40 % of the companies had 30 - 50
employees
●
50 % of the companies had 50 to 100
employees
●
10 % of the companies had 100 to 300
employees

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What is holding back Small and
Medium IT services Companies
Inference 1
90% of all the companies do not maintain a
strong pipe line of prospective businesses.
Their main sources of income are from few
trusted customers with whom they have
regular business of almost same dimension
for years.

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What is holding back Small and
Medium IT services Companies
Inference 2
On an average 30 % of employees
contribute to 70 to 80 % of the revenue
from T&M model. 30 to 40% of this
revenue is used for sustaining a larger
talent pool who are not properly billed

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What is holding back Small and
Medium IT services Companies
Inference 3
The cash reserve is as low as 1 to 4 times
monthly expenses. But at times this
dependency on 2 or 3 regular clients
creates a crunch in cashflow. Such
instances happen multiple times a year
and most of the cash reserve is used up
during this lean phase.

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The three major challenges faced by
65% of companies
1.Higher attrition rate and difficulty in
finding the right replacement during a
project
2.Maintaining cash flow during crisis
period which happens at-least twice every
year
3.Maintaining a healthy pipeline of work
for the next 6 months and finding new
customers and partnerships

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Outliers
7 % of the total companies
Outliers or Rapidly growing companies use
multiple strategies to mitigate this risk and
grow steadily each year. They achieve
about 90 to 95% resource billing each
year.
Their minimum cash reserve standards will
be 6 to 18 times the monthly expense.
Higher resource utilization will also result
in the reduction of attrition rate by 20 to
40%.

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Outliers
How they do it –
A marketing perspective
Proactive marketing is one such sure
footed method by which these companies
maintain their outlier position. Marketing
is no longer just about meeting people,
going to trade shows, exchanging cards ,
printing brochures and sending cold e-
emails.

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Outliers
How they do it –
A marketing perspective
Marketing in this today is about playing
smart by leveraging all the available
resources to the maximum with the help
of technology. Even for a tech savvy CMO,
it’s a pain to choose the right strategies,
partners and technology tools which fit
into the company’s business environment
and yield maximum result. .

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The bad news about Marketing
1.Marketing is an expensive function.
80% of all small IT service companies in
India do not see marketing as a serious
function. Their priority is getting on
with the day to day issues of managing
customers, projects, resources and
statutory compliance.

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The bad news about Marketing
1.Marketing is not a pain killer kind of
solution. It is more of a vitamin, the lack
of which in the long run will deplete the
company of its vital energy there by
creating serious consequences or even the
slow death (4%) of the company. Many at
times while doing a failure or success
retrospective, the role of marketing is
overlooked even after the occurrence of
grave damage.

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The good News
1.People are becoming more aware about
the long term necessity of marketing to
sustain a double digit growth. 5% of IT
service companies in India want to double
their marketing budget in 2016 – 2017.
2.Many technology tools and platforms are
being developed to enable service
companies to plan and execute marketing
campaigns, track their sales and marketing
efforts and predict their future sales.

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The good News
3.Availability of skilled marketing
professionals who can provide unique
strategies, test these strategies, purify and
execute them in 3 to 6 months. This
enable companies to avoid making
expensive mistakes which otherwise will
exhaust your valuable resources and
crucial hours.

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About the Author
Pinaki Pillai is a serial tech entrepreneur
from India. He has been a consultant CMO
for Multiple IT service companies , Real
Estate companies and Multi Speciality
Hospitals.
Contact Details : pinaki@micromcrm.com
LinkedIn Profile :
https://in.linkedin.com/in/pinakipillai

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About the Author
Pinaki Pillai is a serial tech entrepreneur
from India. He has been a consultant CMO
for Multiple IT service companies , Real
Estate companies and Multi Speciality
Hospitals.
Contact Details : pinaki@micromcrm.com
LinkedIn Profile :
https://in.linkedin.com/in/pinakipillai