Demonetisation: A Blessing in Disguise for Small IT Companies

On 8 November 2016, Government of India surprised the whole nation by scrapping Rs 500 and Rs 1000 notes to curb black money and counterfeit notes. People have been facing huge cash crunch since then. However, for some companies, this decision has created business opportunity.

As the country is going cashless, powered by the government’s initiative of 'Digital India', some of the small IT companies with unique product portfolio of e-governance, telecom infrastructure solutions, electronic payment services and e-business solutions have come into their own. The companies being majorly involved in domestic IT-related services remained unaffected by Donald Trump’s anti-outsourcing rhetoric and anticipated interest rate hike by the US Federal Reserve.

ABM Knowledge Ltd: It provides an integrated suite of application products to manage complete working of a typical municipality (corporation or council) of any size. It encompasses every department of a municipal corporation.

Allied Digital Services Ltd: The company is a global IT transformation architect engaged in designing, developing, deploying and delivering IT infrastructure services in India, the United States, Australia, Europe, and the Middle East Asia.

Aurionpro Solutions Ltd: It is engaged in the business of providing solutions in corporate banking, treasury, fraud prevention and risk management, Internet banking, governance and compliance.

COSYN Ltd: Formerly known as CSS Techenergy, COSYN provides software outsourcing services from end-to-end development of new software and web solutions and enterprise application services. It also offers various services, including data and information governance, utilities-ITES and e-governance.

R.S. Software (India) Ltd: It is a provider of electronic payment services and it also operates in development, testing and maintenance of software. It provides services like automating merchant management, onboarding and underwriting for merchant acquiring.

Tanla Solutions Ltd: it is an end-to-end solutions provider, catering to customers worldwide in the telecom infrastructure, telecom services (products and custom development), offshore software development and maintenance sectors.

Vedavaag Systems Ltd: It is a Software development and e-business solutions company which provides solutions in the field of e-business retailing and services, e-governance, managed infrastructure and enterprise applications.

The above-mentioned companies have duly outperformed the BSE IT index in a month’s time frame.