I am the founder and co-owner of a mid-sized IT company based out of Indore, India. We are in business since 2008 and are focused on building customized web and mobile applications across platforms. Our clientele is mainly from North America and the projects vary from fully managed staff augmentation & development to fix priced and turnkey projects.
The big issue with IT service-based companies is maintaining a balance between the revenue and salary cost. We cannot afford to overstaff and hire benchwarmers but also cannot compromise on the service quality and delivery times. We also need to keep pace with the changes and upgrades in technology and continuously need to train or hire staff to meet market demands. This again adds to the cost affecting the bottom-line. To summarize running an IT service company is similar to walking a tight rope and crossing a cliff. Slightest misstep can send your company plummeting down the valley.
We have built a successful business over the years with a positive revenue growth but I can safely say we were one of the lucky ones who could survive and overcome the diversities. I am sure there are many other companies in my city, state, and country who have gone through a cycle similar to ours with different success rates.
Over the years one common problem that impacted our profits was making resources available for short-term projects. Hiring long-term does not do justice to the company’s bottom line and short-term hires are hard to find. There is an option of getting freelancers on board but that puts a major dent to the control, privacy, and quality of work. These are the aspect that matters most to my clients and me.
To overcome this I strongly feel there can be a collaboration of like-minded IT companies within the City that require resources of similar skill set and experience. There can be a stringent set of rules and regulation to get companies on board and become a part of this collaboration. The resources can be made available to members only portal and the remuneration and compensation can either be by barter or cash.
I strongly feel that culmination of like-minded companies, a strong IT platform, and strict qualifying criteria and make this concept a reality.
Give it a thought. It will help you.