We have built capabilities to drive digital transformation from computers to rockets in technology: RS Shanbhag, CMD, Valuepoint Group

RS Shanbhag, Founder, Chairman and CEO at Value Point Systems, said," Building this company was a real challenge, an exciting process, and I am really grateful to Softline´s team for welcoming us with open arms. I look forward to seeing what´s next in our successful future together in India and beyond.”

Bengaluru based Valuepoint Systems has been in the pursuit of creating unique positioning in IT by forming new tech companies, encouraging budding entrepreneurs and tapping the rural manpower. In last 27 years of existence, the company has gained capabilities that allow it to go deeper in energy, healthcare, education, and banking sectors. In an interaction with CRN, RS Shanbhag, CMD, Valuepoint Group talks about his vision and plans for business expansion

Valuepoint being a conglomeration of 15 tech companies, how you stitch them together?
Our business practice has helped us in building solutions and capabilities to fulfill the customer’s need around cloud, analytics, mobility and security today. Our business practice includes multiple technologies. For example, in the cloud, first we built cloud practices and created cloud company followed by partnerships with cloud service providers and acquisition of teams. After the strategy, learning and adoption takes place in the form of CoE and PoC internally before we take it to the customer. We are a group of 15 vertical centric companies. Interestingly, 10 companies are consumers of these technologies. One of the advantages is mapping a worldview of our clients that, in return, make us the business partner of their digital transformation. Before we start our dialogue with the consumer, we know the business of client and start looking at various pieces of businesses.

How is Valuepoint driving digital transformation at its customer’s end?
Over the last 27 years of our existence, we have built vertical-focused solutions to keep up the pace. Currently, there are 500 Fortune companies present in India than global companies – Indian MNCs and SMBs. We started segmenting clients vertically and horizontally and started mapping their future and vision. Then I started aligning and mapping with my talent, technologies, alliances, and partnerships and then promoting those solutions to clients. We have a customer base of 90,000, of which 2000 customers are very active SMEs to Fortune 500 companies. If we further break down, there are two-three segments: companies who drive digital transformation from its headquarters, companies involving us in a strategic conversation, and companies that are taking advisory and consulting services. We are part of the journey for atleast 25 qualified clients; they are largely from India and few of them are government projects. Some of the marquee projects we have done are for National Health Mission, covering 46 large primary healthcare centres in Karnataka. It was a complete end-to-end digital transformation we offered. We have completed the first phase and are entering into the second phase.

Could you elaborate on Valuepoint’s efforts in empowering rural talent and providing new opportunities?
We are a 3,000 people organisation. Today 95 per cent of our manpower is from smaller cities and remote villages. For example, our Head of Services hails from Jabalpur in Madya Pradesh and he joined as a Service Engineer for Rs 4,000. Today he is the highest paid employee and runs US$10 million services business in India and globally. In terms of digital transformation, we took the components and matched with what we are doing inside our group of companies and start moving elements; be it email management, workflow, salesforce automation, digital or social. I always encourage and give the opportunity to people from a rural background.

Are you looking for fresh investments; any plans for inorganic growth?
We had options in 2008 when we had plans to go for IPO. But we continued to expand; meanwhile, lots of companies and investors approached me, but, I still feel we have a lot of potential to grow our own. Having said so, time will definitely come to start looking for strategic investors. Recently, we have started our the US operation, globalising Valuepoint. I think the story for investment will take another two-three years. Overall, we are taking our old and established practices including security, consulting and advisory and tech distribution to global levels.

In your view, how channel platforms help Valuepoint to gear up for future business opportunities?
Partner events help us in finding our blind spots and provide industry insights and inspirations from each other. Most of us are entrepreneurs and visionaries with different leadership styles that give us new vistas to fine tune our offerings. Moreover, it encourages you to take a calculated risk and diversify. How do we know what is there tomorrow; its all depends on when you participate, to know there is future with the support of reports and trends.

On a personal note, what is your passion and purpose of life?
Valuepoint’s purpose to be present wherever technology makes a difference in people’s lives; creating new jobs, empowering job creation in rural areas. Back in office, I have a ‘Shanbhag’s Wall of Vision 2020’. Among the top is creating 10,000 jobs by 2020, creating up to 25 job creators, becoming the No 1 Employer of Choice in India and donating 10 per cent of the profits for CSR activities directly. Apart from that, we are aiming to become Rs 2000 crore worth revenue organisation with 20 per cent of profitability. Presently, we are looking at a turnover of Rs 600 crore, 3000 employees with 15 companies. We will be heading for consolidation and restructuring. Moreover, we are a zero debt company. Every dollar earned is reinvested in the company in the last 27 years.


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