FCS has big organic and inorganic growth plans

By providing solutions through a unique working model, FCS Software Solutions has carved a niche for itself and has proved that small companies can have a definite future too, says Gaurav Patra

The key factor while handling mission-critical outsourcing work for your customers is to have dependable infrastructure, says Dalip Kumar

Niche focus, in-depth technology solutions, competence built around people and a high-level of integrity are the pillars of strength in this decade-old software development company. FCS Software Solutions, established in 1993, has come a long way since its inception. Founded by Dalip Kumar, the company’s initial charter was to service client projects in ASK/MANMAN on the VAX and HP 3000 platforms.

Gaining from its experience and building on its core competence, the company is now an established player, providing a blend of onsite and offshore services to its Fortune 500 customers. Dependent on the US market for a major part of its revenues, the company has built a strong infrastructure to support seamless offshore delivery.

"One of our main focus areas in recent years was to build a strong, scalable and robust infrastructure. The key factor while handling mission-critical outsourcing work for your customers is to have dependable infrastructure. Today, we have a sustainable 24x7 operation with dual gensets, 24-hour manned front-desk, dedicated IPLC from Noida to California, backup for all communication links and a business continuity process. We are capable of handling large mission-critical projects," says Dalip Kumar, managing director, FCS. FCS is a KPMG-certified ISO 9001 company and has an existing roadmap to CMM Level 5. The company extensively uses project management tools to ensure transparent client monitoring and full control by US clients.

The company has an offshore development centre with a T1 data link and a backup support of 256 Kbps and 64 Kbps links in Noida. A strong 512 Kbps Internet leased circuit from Noida to California enables FCS to act as a virtual extension of any team in the USA with 24-hour voice/data connectivity and a US toll free number for India teams.

Strategic focus

The company will leverage its technology to build and sustain expertise in specific areas and to build relationships and clientele around these areas. "We have capabilities in development, testing, support and maintenance," says Kumar. E-learning and digital content services (DCS), business process automation and workflow applications are the main areas of competence for FCS. "We have a niche focus and possess expertise in the above-mentioned areas, we have an established team, validated best practices, dedicated customers, and above all, the ability to satisfy our customer demands," elaborates Kumar.

Adds Vineet Narang, vice president, strategic planning and business development, FCS Software, "Our main focus has been to build depth in these three areas and strengthen them on an on-going basis." Narang also heads the offshore services group and is quite optimistic about the growth of offshore revenues in the coming years. "We are already servicing seven Fortune 500 customers and plan to add four more by December," he informs.

In each area of competence, FCS has divided its strengths on the basis of planning, building and management. "One can do many things, but one can be an expert only in a few areas. That is why we have clearly defined our service boundaries and also defined areas we can do consulting in (planning), coding (building) and management (post-sales)," adds Kumar.

It is also worth mentioning that the company is a Microsoft embedded partner, Oracle business alliance partner and Sun certified developer. As far as focus on domains is concerned, FCS has established expertise in sectors like food and beverages, finance, insurance and banking; telecom, office automation, retail and FMCG. "We completely understand the needs, workflow, quality processes and ideal software platforms for all these sectors," claims Narang.

Also, as a strategy, the top management spends 60 percent of time on issues related to client satisfaction. "We take only four ‘lab-on-hire’ clients in a year and ensure that the client receives detailed attention. The company’s objective is very clear—to get clients to repeat business orders and nurture long-term relationships. "We understand that software outsourcing is a critical business decision. We deploy our time and expertise to add value, by providing on-time quality output to our clients," adds Narang.

E-learning and digital content services (DCS), business process automation and workflow applications are the focus areas, says Vineet Narang

Lab-on-hire initiative

At present, three of its customers are using the ‘lab-on-hire’ model. Dedicated labs are equipped with the required hardware and software needed for the implementation. Manpower, with the required skill sets is provided to the client to start the project. The team works under the supervision of a customer project manager and reports directly to him/her. FCS manages the infrastructure, project staffing and delivery, while the customer has a transparent view of the whole process and project progress, throughout the development cycle.

Full access to the team and lab is provided to the client. "Our IPLC set up to California helps US clients to use this lab as a virtual development centre that is connected 24x7x365 days a year," says Narang. "Customers prefer this model as they have full control over teams and project delivery, no hassle of hiring or firing, no overhead cost and no recruitment cost. Knowledge accumulated stays within the lab and is owned by the client."

Future initiatives

Kumar says that in recent years FCS’s US customers have responded positively to these state-of-the-art services. "Our objective is to be one of the largest software vendors in the area of e-learning, DCS and workflow applications. To achieve these objectives we have a two pronged strategy—increasing our reach by strengthening the sales effort and increasing our marketshare through acquisitions," he informs.

The company has recently added a new sales team to enhance the sales effort and increase its presence in the US market. The sales teams are focused towards building on the existing Fortune 500 customer-base and adding more lab-based customers.

According to Kumar, there are many companies in the US operating in same space as FCS, who also have an existing clientele base, but are under financial pressure due to the existing economic scenario. Today, FCS is looking to acquire such companies as it would be able to reduce operating costs by using the other companies’ offshore delivery model, and thus increase margins. "We are a debt-free company and have built a good cash reserve over the years in order to take the acquisition route," he adds.