Fulcrum pushes growth lever against meltdown

PUNE, INDIA: An additional headcount of 2000 people, two joint ventures to be finalized soon and revenue mark of $45 million by 2010, ambitions like these stand out conspicuous amidst times where most of others are pushing the delete buttons.

For Fulcrum Logic Pvt Ltd, a $ 30 million global information technology services provider and business consulting organization, headquartered in New Jersey with offices in California, Europe and India and five global delivery centers, this is however a time to go for expansion and new areas of growth.

It would be consolidating its growth in markets like the US and UK while exploring fresh territories like Europe, Australia and India. In India it already boasts a pipeline of four projects with a group deal for Kotak as its major feat this year.

“We are covering pure application development, business consulting, maintenance of heterogeneous infrastructure, customer facing portal etc. The experience and success at Kotak would be leveraged to other Indian customers and we would eye companies across insurance, banking, manufacturing etc,” tells Raju RamaSwamy, AVP, Business Development.

“Through Kotak we would replicate the business model across other group companies. Also, we will push up our focus in Europe.”

Commenting in the context of recession, he remarks that slowdown only makes the blood cleanser and pushes to focus on alignment. The company would be hiring in phases this year to add to its current resource strength of about 700. Senior manager for Resourcing, Sameer Chokal points out that this, contrary to other perceptions, is a right time to hire in view of earlier salary levels which were unrealistic.

“We have been able to talk boldly of expansion because of our principles of having resource-on-demand rather than having resource-on-hand. We hire based on our existing customers’ buying patterns. We want to be ready and proactive,” RamaSwamy adds.

By 2012, the company intends to complete its phased approach to the targets on headcount and new facilities that would also include a 100-150 people team in Brazil.

When asked as to how much of this ‘expand’ approach is feasible and relevant at a time when economy and industry is standing at a unique cusp of slowdown, CEO Rajesh explains, “Once the market stabilizes, Fulcrum would stand as a strong player. If you are successful in a tornado, one has a different advantage ahead. We plan to adopt a 'co-exist strategy' with centers in multiple locations.”

As its CEO, Rajesh Sinha points out the current economic scenario shows that mid-sized companies would have a better edge than bigger ones in adapting. In the perspective of RamaSwamy, the next five year, horizon is very ambitious for the company that will bring forth high levels of investment.

“We prepare ourselves for 2009 and are adapted to move ahead. Companies like Accenture may find it difficult to fine-tune to the desired responsiveness but we can put up the same level of quality with a connect to customers,” Business consulting could be the prime direction for Fulcrum in the long-term.

Also on the anvil are two strategic joint ventures currently at the discussion and paperwork stage. One of them is an American company with plans for a joint development center. Another one is possibly for call center solutions with a London-based firm.

While he refrains from divulging much in advance, with a 15 to 20 per cent growth in revenue as the target, Sinha clearly is betting on playing it big, despite the downturn.

“Being optimistic and putting smart investments while being careful about expenses is the way we are handling the current scenario. People should not be negative in a recession, be it towards customers or employees. It’s time when good ideas would nevertheless survive.”

For Fulcrum Logic, expansion appears to be the logic to solve the recession algebra for sure. It would be interesting to watch if the fulcrum of growth is able to push up the company ahead?