Three years ago, a huge fraud running into couple of crores by the company's employee in its Jaipur branch was detected. "Redington stood by us and gave us ample time to pay the due amount without interest charges. This is the market credibility we have built over the years," he says. The company invested in Microsoft ERP four years back that coincidentally helped it detect the fraud. He credits the ERP to Ranjan Chopra of Team Computers who pushed him to implement ERP within Micro Clinic.
Innovation in Services
These days, Micro Clinic has reduced its focus on hardware revenue. It now contributes to 50 percent of the revenue compared to 78 percent few years back. "Security and availability and services now contribute 30 percent and 25 percent respectively and also adds to margins," Seth says. "Offering innovative services to the customer is our survival mantra. From offering break and fix services in early 90s, we then invested in mobile vans that offered services to customers within four hours," he says.
Five years back, Micro Clinic invested a substantial amount in R&D to build a services offering on the Kaseya platform. "But, it has not taken off in a big manner," says Seth. That has not discouraged him. "Gartner predicts managed services to be 65 percent of total revenues of enterprise IT management by 2015-16. In the US, these services that we offer are doing well. We are among handful of SIs that are ready to ride the wave, especially considering that we have a call centre, script, and people in place," he says. In 1999, the company transitioned by forging alliances with HP (Compaq earlier) and then added IBM. Presently, it is a premier partner for HP.
Micro Clinic keeps track on emerging technologies like big data and cloud. "It is important to have a bird's eye-view on the vendor landscape and align with right ones. Our existence is mostly due to the capability of our sales team and vendors," he says. Micro Clinic, that was purely a government player till 2003, shifted focus to the enterprise segment in 2007. Government sector has good prospects and we have formed a special team for this vertical. "The revenue split in future would be 30 percent and 70 percent in government and enterprise," says Seth.
Micro Clinic is an SI and services company, with has more than 1000 employees, 15 branches, and 187 service locations. It has always ensured lucrative employee policies to attract the best manpower at a price similar to tier-1 SIs. This has strengthened its position over the years.
Our offices in Mumbai, Ahmedabad, and Pune will strengthen top lines and we will record more than Rs 140 crore in revenues this fiscal. The first six months has yielded half that target. "The new team on board will accelerate doubling of revenues, and importantly healthier bottom lines," says Tarun Seth, founder and MD of Micro Clinic.
Sign up for CIO Asia eNewsletters.