Among many markets, Indian ICT channel market is really disturbed due to the pandemic. We have tried to collate their opinions and find the ways and means to the solutions.
The global pandemic – COVID 19 has not only put everyone locked down in their respective homes but also kept all the businesses shot down. This has reasoned for sluggish business environment. On the one side when there has been no abetment of technology consumption, on the other side, there has been growth in consummate delayed payments although work from home has enhanced the demand for end computing devices and security platforms. Although from the vertical market point of view, many sectors have contracted their operations and sales. Even some including automotive, aviation, hospitality, tours and travels among many have stopped their operations due to non- availability of buyers.
On top of it there is no signs of relaxation as the cases of COVID 19 victims are growing in India and no one in the global scale are ready to work with China although China is believed to have opened their operations in major cities including Wuhan.
“What I think is that getting business will not be a problem, as the demand in the market will still be there. The payment cycle looks to be a problem as due to no business during lockdown the fixed expenditures have eaten our reserves.”
Rakesh Gupta Prop.
Of an SI company mainly Govt Business
Rakesh added: “The effect of payment delay will be on all businesses, specifically on B2B business. Monetary Govt help to us is least expected. What we can do is to shorten the payment cycle by controlling it at the level of B2C business. The customer also will try to take advantage of the situation. In my opinion we should create a common data bank of customers (both corporate and Govt) who intentionally delay payments and should try to put collective pressure by way of not providing him services/ products.”
“Advices to work with better margins and don’t do negative deals at all. ”
“Customers mostly buy from one vendor, then if he insists on payment, he will go to other vendor and refuse to pay the first one. There should be united effort to control this. We should have a common method to assess the credibility of the customer. A central database where we can put the default customer. It will be much usefully for vendor community”
indsys Infotech Services India
“Very true. Customers are now asking more and more credits and if the current vendor refuse then they are saying other vendors are providing more credit. So, we are losing the business. Now it’s a time of our Unity so corporates will not take Advantage of the Situation.”
Devang Jasani, CEO, Meridian Infotech of opinion that the orders belong to Q4 for which deliveries got affected due to COVID19, Enterprise Customers are imposing Force Measure. They defer the delivery dates and asking for extended credit period for the Due payment also. As per them due to lockdown, the manufacturing and SCM got disturbed and it has major effect on Cash Flow.
“We are going thru the most tough times. However, to stay afloat is the need of the hour. People are talking of cutting staff, not paying staff but I beg to differ, any organisation Small or BIG one of the biggest assets they have is their teammates (Staff). Don’t lose hope. The current crisis will not persist indefinitely. Remember the golden words ‘When going gets tough, the tough gets going.”
CEO & Founder,
“This is a Golden time for Indian IT System Integrators to rethink, re-invent, innovate & come out like an “Amrit” from “Samudra Manthan”. These difficult times are a golden opportunity for SIs who have developed a niche for themselves in solution selling with industry vertical solutions. SIs should have guts to say No to those business which are low hanging fruits as there are chances that they can land us into Cash Flow Issues. The role of CFO is most important as cash flow management, expense management, relooking @ Bank Limits will be some of the key actions to be taken on immediate basis rather than waiting for things to get worse. Hence best strategy is to prepare for worst when it has still not happened. Inner Happiness of Business Leaders has to be at the highest level during these difficult times as we are Role models for our employees & family members.”
Akshay Kumar Sharma,
Medley India Infosolution