FY13 has really started with big challenges at hand. The macro-economic factors are not very encouraging,and fiscal and current account defecit are showing worse and worser trends with Currency showing continuous slide.What is causing big worry is that most of the T&M vendors who generally sell at least 50% stuff in foreign currency expect customers budget getting skewed unfavorably.As it is the Capex is being pushed back by the Finance mandarins at both manufacturing and Services industry.The justification of higher Capex (non-convertible to Opex) is just not tenable as the Expenses on interests cost as well as Higher Cost Dollar and Euro.What does all this mean to T&M sellers,in terms of Market Segments and type of deals to be focussed?
T&M companies can convert this time of anxiety to opportunity by merely adjusting their course slightly.The major segments of traditional T&M are the Defence /Aerospace and Communications.Within these the emphasis should be selling at the back end-focussing on Global and Indian major Contractors as a part of Deployment contract,or the Offsetting Contract.The advantage will be that locking of T&M supplier will happen at the main contract itself and FE impact will be evened out.It is win-win situation to both the Customer and the T&M Supplier.Likewise the NEM supplier can be front-ending a package which may include T&M services( Acceptance,installation,commissioning,conformance/performance testing etc0 as a part of total solution) to neutralise the exchange impact!
Further, the fragmented sectors over the Geography needs to be focussed for locating newer clients in education, Homeland Security and State Industrial Parks etc.India continuously attracts Design Centre and Contract Engineering work from abroad.The last count suggests that as many as 800 plus companies have set up some sort of Design Contracting in Bangalore City itself .This will provide fodder to find next Intel or a John Welch Tech Center for selling T&M Capital Equipment.
All in all, it is tougher bit now but with a little perseverance and a bit more of diversification on Client side we can iron out the lean time now.I expect this to last for couple of Quarters before we see growth again logging Double Digit track.All the best
folks.
T&M companies can convert this time of anxiety to opportunity by merely adjusting their course slightly.The major segments of traditional T&M are the Defence /Aerospace and Communications.Within these the emphasis should be selling at the back end-focussing on Global and Indian major Contractors as a part of Deployment contract,or the Offsetting Contract.The advantage will be that locking of T&M supplier will happen at the main contract itself and FE impact will be evened out.It is win-win situation to both the Customer and the T&M Supplier.Likewise the NEM supplier can be front-ending a package which may include T&M services( Acceptance,installation,commissioning,conformance/performance testing etc0 as a part of total solution) to neutralise the exchange impact!
Further, the fragmented sectors over the Geography needs to be focussed for locating newer clients in education, Homeland Security and State Industrial Parks etc.India continuously attracts Design Centre and Contract Engineering work from abroad.The last count suggests that as many as 800 plus companies have set up some sort of Design Contracting in Bangalore City itself .This will provide fodder to find next Intel or a John Welch Tech Center for selling T&M Capital Equipment.
All in all, it is tougher bit now but with a little perseverance and a bit more of diversification on Client side we can iron out the lean time now.I expect this to last for couple of Quarters before we see growth again logging Double Digit track.All the best
folks.
No comments:
Post a Comment