A complete overhaul of the organization initiated two years ago has helped CSS Corp, a technology company owned by Swiss private equity firm Partners Group, improve its performance. Over the past year, the quarterly execution rate has improved by around 25%, said the company’s CEO, Manish Tandon.
“We are seeing the results of the redesign with a quarterly run rate of approximately $40 million. Each quarter we have added 4-5% sequentially. The growth has not been sudden and attributed to one or two customers, but has been incremental in recent quarters,” said Tandon, who joined CSS three years ago after nearly 20 years at Infosys.
The company, which has around 4,000 employees in Chennai out of a total global workforce of around 7,100, saw a 4-5% increase in revenue quarter-on-quarter, he said.
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While CSS’s growth was steady, Tandon said he needed to rejuvenate the entire organization and reposition the company. “Today, we are not an IT or BPO company, but a new era IT services company. Give us any problem, we’ll lead with technology and people rather than the other way around. It was a big change for the company,” he said.
The entire sales and marketing organization was redesigned, and the culture, mindset and training of employees had to be worked with technological changes. The new revenue model was based on results. Most customers now receive an annuity rather than time and materials. It helps in a sustainable business. The CSS mainly focuses on sectors such as technology, media and telecommunications, outside of digital commerce, he said.
Open to acquisition
Tandon said the company is open to acquisition to drive growth and is willing to shell out between $20 million and $100 million. “We will be looking at a company that is dedicated to product development or testing. We have enough cash and are quite profitable. We are backed by the Partners Group, and if there is a need to inject equity, it can always be done,” he said.
For the year ending March 31, 2020, the company is expected to record revenue of nearly $160 million compared to $139 million last year. “Organically, we’ll hit about $200 million in a few years. However, if an acquisition is completed, the completion will be much faster,” he said.
He said the company recruited nearly 1,500 people this fiscal year in India, the Philippines and Costa Rica.