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“We realized that the transaction-based model was actually sensible, and that its profitability would be higher compared to ordinary box sales.” SAMIR DHINGRA, MANAGING DIRECTOR, NETSPIDER INFOTECH

P H OTO BY K A P I L S H R O F F

T

Living on a

TRANSACTION

A transaction-based model calls for sizeable investments for partners. But as Netspider Infotech shows, it’s a profitable business. 30

INDIAN CHANNELWORLD NOVEMBER 2012

HIS IS do-or-die. It’s hard to be certain if that’s exactly what was going through Samir Dhingra’s mind, but it wouldn’t be too far off the mark. It was 2002, and as the managing director of a start-up, Dhingra had just pitched a OCR software and scanners’ solution at the Reserve Bank of India— and he needed it to work. The problem was that the deal wasn’t exactly going his way. The RBI wanted this solution but didn’t want to dole out the capex necessary for the project. It did, however, offer Dhingra the deal if he was willing to take an unusual route: A transaction-based model. At that point, such a model was unheard of, says Dhingra, who remembers having to mull of the approach. “It would mean that we would own the solution and the customer would only pay to use it. We realized that the model was actually sensible, and that its profitability would be higher compared to ordinary box sales,” he says. Part of Dhingra’s decision might have had something to do with the need to keep his company solvent. But whatever his primary motive was, one thing is clear: The transaction model has since made his company, Netspider Infotech, a lot of money. Today, Netspider Infotech is one of the largest system integrators to offer transaction-based digitization solutions to government departments. Much of its success came after Dhingra took the formula he worked out with the RBI and offered it to other government departments. “In 2005, we saw a major breakthrough when the government of Odisha decided to collect student data for state fund allocation on a transaction-

Channelworld Magazine November 2012 Issue  

Channelworld Magazine November 2012 Issue

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