Dear Fellow Shareholders
As I write my annual letter to you this year our world is in the midstof the greatest pandemic of a generation. An event so cataclysmic it has brought themightiest - governments organisations & individuals alike - to halt and pause lifeas-usual. The time it will take to measure and quantify the complete impact of thisunprecedented tragedy is anybody's guess. What is certain however is that we will adaptmake the necessary course correction and come out of this stronger. We see this will tosurvive and tackle the situation head on in first-responders healthcare workers and ourcommunities. My thoughts remain with these heroes and we shall forever be indebted tothem.
In my annual letter to you I usually cover priorities performance aswell as the broader issues facing your Company. When the time is right and the futureclearer I will provide a more complete and current view on how this crisis might changeour strategies around how we run the company work with our clients and develop innovativeservices. However right now as we deal with the spiralling effects of this pandemic Iwant to focus on what we have done to remain strong resilient and well-positioned tosurvive and support our colleagues clients customers and communities.
Your Company has been working on getting the transient response right(of protecting employees and managing cash) without losing sight of long termtransformations required to take advantage beyond this crisis. From continuous customerdialogues market observations and cross-functional internal discussions we are gatheringinsights with a view to detect longer term opportunities and how we respond vis-a-visour competition. Based on this investments and organisation restructuring will no doubttake priority and gather pace.
From all the expert commentary there is agreement that Asia will mostcertainly lead the way out of this crisis. I subscribe to this view completely and amcertain the investments we have already made in our team capabilities and infrastructurewill hold us in good stead. Your Company Onward Technologies is an agile organisationhungry to deliver on our customers' vision and we are raring to go once the green shootsstart showing.
THE WORLD WE OPERATE IN:
In the prestigious Nasscom survey conducted as recently as December2019 60% CEOs expected global technology spends to grow. The top 3 drivers of thistechnology spending were
The events since will certainly act as catalysts to fasten this growthas evident over the past few months where we have all transformed in the way we interactwith loved ones do our work travel get medical care spend leisure time and conductmany of the routine
transactions of life. Digitalisation will become a critical part oforganisation strategy as companies look to build on opportunities evident from lockdownsacross the world. We will find organisations use technology more as the advantages of workfrom home for instance become evident in not just reducing overheads but also incontributing to the elusive work-life balance which employees crave for. Potentially awhole new industry will start concentrating on innovations to get a piece of this pie.
The new Normal - Organisations will need to develop digitalsolutions quickly and adapt to new operating models to deliver to customers and employeesat scale. All eggs in one basket will become a thing of the past as supply chainswill be re-thought and re-negotiated with business continuity becoming the most crucialcriteria along with the usual suspects of cost and capabilities. Best person for thejob will come into sharp focus as companies will look to becoming lean and concentratemore on core business. Blended outsourcing models will re-define measurementcriteria with project delivery becoming a given and risk mitigation and desired outcomebecoming cornerstones of defining success. There will be no more vendor partners onlypartners - who will enjoy both empowerment and the responsibilities which come with it.
BUILT FOR THE FUTURE:
Capability - As I mentioned earlier we have been steadilyinvesting over the last few years in expanding our capabilities and infrastructure toserve requirements of the 'digital organisation' better. Our ambition to thrive and notjust survive has led us to develop capabilities in Cloud Computing Data AnalyticsEmbedded AI and Machine Learning. We are seeing revenue realisation already and I believethese areas will command the most budgets and share of technology spends going forward.What pleases me most is the fact that we have the ability to offer our customers theentire gamut of services - from design to decisions through digital transformation. Yourcompany has the legacy in engineering services and domain expertise across industries andalso the capability of forward integration with addition of these new business lines.
Leadership - Your Company is now led by a young agile and dynamicteam assembled on the principle of 'right people at the right place at the right time'.Over the last year we have added several senior members with fantastic credentialswithin their areas of
expertise to ensure the organisation culture will always be ofdelivering high performance. This team is now responsible for delivering on the growthstrategy it has set under the guidance of seasoned industry veterans who are part of theboard of directors.
Culture - Industries are continuously upgrading their products tomeet consumer expectations for constant innovation. Hence they would prefer to build atwo-way relationship with a partner who has the capabilities to add value to every taskand to fulfil their requirements in a constantly changing world. To align our brand andservices offering to this prevailing truth your Company did some introspection and theresult was an understanding of our positioning in the market and its translation into acrisp declaration.
Onward Technologies has been and intends to remain the 'perfectpartner' to all its stakeholders. Your company's vision is:
Become one of the most preferred Technology Services partners to topglobal companies who are leading innovation at the intersection of the digital andphysical worlds.
I would like to introduce you to YOUR new Onward Technologies thecompany which intends to live up to the motto of:
Your Imagination. Delivered to Perfection.
Your Company intends to be your partner for long time to come and thefact that we enter 30th year of operations this year is a testament to this.This longevity is a result of planning and a sustained effort to ensure growth is not a'flash-in-the-pan' scenario. We always look to promote and involve the right people andinvest in the right areas - this is and will remain the cornerstone of our inclusivegrowth. I am proud of the fact that this policy gives me a chance every year to celebratethe achievements of our women leaders engineers - who have become astute businessprofessionals and several additions to the leadership teams.
ONWARD IN THE COMMUNITY:
Similar to business goals your Company intends to become a 'perfectpartner' to the communities it is a part of. Education is the broad theme which wecontinue to invest in as our thank you for the wonderful support we have received over theyears. This year we renovated sections of the historical St. Xaviers College Mumbai -with the aim of creating world-class learning environment for future leaders andachievers. Education is power and your Company partners with Akanksha Foundation to helpthem fulfil their mission of building largest network of innovative schools that empowerschildren to maximise their potential and that influences systemic reform. This year weOnward team members ran the Mumbai Marathon to spread this message of 'Education for all'.Your company is also a proud partner of Team Alchemist Racing who secured 1stprize in the CAE category at Formula SAE-India 2019 championships held at the BuddhInternational Circuit.
I have a deep and abiding faith in our capabilities as a nation and ourextraordinary resilience as a people. Our challenges are significant and we will have todo all we can to ensure we come out stronger from the situations we find ourselves in. Wehave to contribute - as individuals and as members of society do our bit and follow thesocial distancing norms amongst other guidelines. Let us not forget each one of us has asignificant part to play in achieving the greater good and never has it been down toindividual discipline than ever before. I assure you your Company is doing all it can andthen some to come out stronger on the other side.
I would like to express my deep gratitude and appreciation to you myfellow shareholders employees of Onward Technologies our clients and our community - youhave shown great resolve and tremendous character to face these times of adversity withgrace and fortitude.
|Yours sincerely |
|Harish Mehta |
|Chairman - Onward Technologies |