04 Sep 2019

9 survival strategies for it companies during recession

It is an uphill task for the IT company to survive in times of recession. It is where the company’s business practices are tested. With the automobile industry coming down to a grinding slowdown, the ancillary industries will be taking the blow one by one, which will gradually descend down to the IT infrastructure of the industries. Here are some tips IT companies to prepare and survive the economic slowdown development companies.

1. Contact Your Clients

Recession is the time where your clients will be looking for cost-cutting measures. It is probably the best time to contact your clients and reinforce trust in them that you will be providing excellent web and IT infrastructural support to them at their times of need. It is a time where the IT companies can actually convert client casualty to the opportunity to establish a strategic partnership to build each other’s business.

2. Reinforce Your Value

The IT Companies should project themselves to the clients as a solution provider showing how investment in IT infrastructure at this crisis can be helpful in the long run. The web designers, developers, and all the tech support team should reinforce value to the company so that they ensure clients’ survival at the times of recession.

3. Revise Your Pricing and Quotes

During the time of recession, it is time to re-evaluate the pricing of your services and stay at the top of the game. It is the time that IT Companies should sense the opportunity to provide friendly pricing to the clients which address their prevailing financial problems. It is a wise way to stay profitable in the market at the time of crisis.

4. Selecting the Right Add-On Services

There is one evergreen field that doesn’t die at the time of recession- MARKETING. Because it is the bread-earning department for the entire company. Adding right Addon services like Digital Marketing and Social Media Marketing to your service package will eventually create a future source of income. The companies should also learn to outsource these services in the beginning if they are not comfortable with it in the beginning.

5. Promote Solution-Centric Approach

Recession is a time where the companies are tested. Especially their approach. Instead of talking to the client about the scenario and the damage it can cause to the economy, you should develop a solution-centric approach to deal with the clients. The clients will thus be encouraged to have a healthy discussion to survive in the market and rely on you rather than packing the bags and saying bye-bye to the business.

6. Establish Rapport with Larger Companies

Recession is a time where most of the companies look for exit strategies. It is time to establish rapport with larger companies and grow the business. It is a perfect entry strategy for small players to gain goodwill in the B2B market. Once the economy sees light at the end of the tunnel, it is you who benefit at the end with larger companies placing trust over you as a consultant at the time of the crisis.

7. Form Strategic Alliances

Once you establish rapport with the large companies and the established clients, form strategic alliances for the future which can act as a source of revenue in the future. It is time where the IT Company can grow into a key digital service provider where it can diversify its services and come out with ingenious market entry strategies.

8. Reducing Overhead Expenses

Once you establish rapport with the large companies and the established clients, form strategic alliances for the future which can act as a source of revenue in the future. It is time where the IT Company can grow into a key digital service provider where it can diversify its services and come out with ingenious market entry strategies.

9. Focus on Creating Quality Manpower

Reducing the staff should be the last decision taken by the company. This is the time where the company can reassure its staff to produce quality output and form a strong team who co-operate and co-ordinate effectively.

Conclusion:

Hence the three ways to survive in recession we can learn from these nine steps is to keep the expenses optimum, making customers bank on our capability and create a positive work atmosphere for the future.

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