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October 2014

IT services firm achieves non-linear growth through automation

Scandinavian IT services firm Cygate has expanded its business without needing to recruit more staff by using automation software from IPSoft. In 2010, the company, which serves more than 1,000 customers including some of the biggest corporates in the Nordic region, was experiencing 20% growth in sales. This meant the company needed to add resources or risk service levels deteriorating. But just adding manpower would have reduced its margins. This is a common problem among IT services firms that traditionally grow in a linear way – typically, they win more business, then add more staff to support it. But service providers are now trying to reach the holy grail of non-linear growth. This means adding business without needing to add to the workforce to support it, reducing the proportional increase in the cost of providing an additional service. At the same time, increased use of cloud-based IT is forcing IT services firms to add more higher-level support services. Mats Mägiste, CTO at Cygate, said: “We were concerned about how to...

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