Tilt the Scale
A deal that marked a turning point in the journey of Vertex was when they bid for a project tender floated by a defence body. This was during the onset of the global recession and Vertex had only started off with its corporate business. Despite competition from bigger channel partners and principals themselves, Vertex was chosen as the L1 partner for the project. But it was only after picking up the tender that we realized that there were elements in terms of software that werent the core of our business, says Nair.
Even without the necessary skills on board to tackle the project, the team managed to successfully complete the entire project leading to a great customer satisfaction. The recession gave us a huge opportunity to gather our resources and understand how we could use multiple partnerships to do fulfill the deal, says Kesavan.
This project was testimony to their attitude of being adaptable and bold in the face of challenges. The slow economy also led them focus sharply on the growing mid market segment. During the same time it also started operations in Kerala. But unlike its business in Bangalore, most of the projects in Kerala were with the government. Though we didnt have as strong a presence as some of the other vendors in the state, we were able to pick up huge orders for HP, says Kesavan. By delivering on time and exceeding expectations they were also able to expand their clientele in the government sector.
Another factor that contributed to its growth was the combined passion for the business. We used to compete with each other in terms of the value we can add to the business, says Nair. A healthy internal competition along with complete transparency in dealings helped build the trust within the team and with customers. This greatly helped Vertex keep pace with the times. While we had the passion and determination to do business, we did not know all the rules of the game, says Kesavan.
There was a component called turnover tax (ToT) that they werent aware of. At the end of two years of operations they realized they are required to pay ToT for those years and despite the fact that it would burn a significant hole in their pockets they decided to pay up the money and stay clean. But that was money spent on an important lesson. They learnt never to miss the fine print.
Instead of crying over spilt milk, Kesavan and Nair braved up to take the rough with the smooth. This also re-emphasized their commitment towards checking the customers financial health and looking for leakages before getting onboard. We have also built fantastic relationships with our distributors through our transparency and strong partnership with principals, says Kesavan. Even in times of economic uncertainties that most organizations are facing today when payments are hard to come by, the SI has built a credibility that would make any distributor want to work with it. We might have been a little slow but our operational efficiency and investments in right areas like solutions have helped us remain profitable, says Kesavan,director of Vertex.
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