Founded in 2007, TCube solutions has become a trusted software service provider in the

domain of insurance for clients worldwide. By using accelerators, best practices, and
complementary solutions they help clients to reduce costs, risk enhancing performance
and maximising their revenues. Commitment to cost reduction, experience and
credibility of their leadership team is making them different from their competitors.
Mr. Debasis Nayak, the co-founder of TCube Solutions, says, "We are no more an Indian
company now, we have offices in India, U.S. and a few other countries. We have our
headquarters in Columbia. On 1st August this year, we completed our 8th year of
success."
They did not take help from any financial institutions to start TCubes. It was their hard
earned and saved money that they used. They faced challenges in their very first
project. As there was an economic crisis going on, their client went bankrupt. For them
there was no business for the next six months. During this time, they did some in-house
projects and gave training to employees about other technologies. After six months they
got a project. As they were supporting their employees financially during that period,
they had no money to hire new people, so Mr. Nayak and other co-founders took the
responsibility of more work and survived. If they look back now, their business has grown
tremendously because of some references and a good reputation with their clients.
They have a pool of fresher and experienced people (ranging from 020 years of
experience). Sometimes when they hire someone through college recruitments, they
look very impressive on paper or social media (LinkedIn, etc.), but in reality they are
not. Of course there are some exceptions to this. They need to groom them and train
them for six months. Now, after investing so much money on a candidate, if they leave
their job after one or two years, it affects the company's performance as it is a small
company. It becomes difficult to plan the future course of action if an employee leaves
within a year or two. They should stay with the company for three years at least.
Female employees on the other hand leave the company when they plan to get married
or to have a child.
Within a span of three years, employees learn more in small scale industries as
compared to large scale industries. A person having an experience of three years from
small scale industry is equivalent to a person having experience of five years in a large
scale industry. And if we consider growth, it is also massive in small scale industries.
"Everyone wants to fly after 2 years, nobody wants to work.- says Mr. Nayak. Employees
tend to leave one organisation for a better offer in another after spending a year
training in the first one. They need to have patience. Every person in this world feels
that The grass on the other side is greener, but the people who left the organization
came back after a year or two as other side was not as green as they thought it would
be. They didn't get enough opportunities for personal growth or value addition. The
company's profit margin has been hit by paying well to the employees but for any
company-the backbone of a project is an employee who has an experience of three to
nine years.
Big companies give birth to small companies as they dont want to do small work.
However, the big companies have a dominant role in the market. The company has a
team of 100 people in India. Globally, their main target is the insurance sector. At the
time of bidding for a project, the company needs to plan for the next 5 years in
advance- it includes hiring new people, training them for the required technology,
buying new resources and various other things. The market is not normalized. There are
some issues with salary. Employees want more bonuses, salary hikes and incentives. In
Bhubaneswar, the cost of operations is the same as Bangalore/Mumbai/Pune, real estate

prices are also nearly the same. Also, being a non-metro city, business options are few
here. The company does not get too many projects in the domestic market. Inspite of
this, employees want the same pay as in Bangalore/Mumbai/Pune which is very difficult
for TCubes. Same goes for U.S. employees too.
Can you sustain your employees for next one or two years if your business stops today?
Do you have enough work for them? Can you execute your daily operations if there is no
more business? Survival is must for any start-up or small company. Short term and long
term goals are very important.
From the sales point of view, there are two types of projects- Domestic and
International. For international projects they dont have a strong pipeline of work,
whereas domestic projects are concerned, then the cost for it depends on government
policies, their brand value and work history. Big movies sell automatically, but small
movies require word of mouth and a good content. Same goes in the case of big
companies and small companies.
Employees are our brand ambassadors. They are our biggest strengths, they are given
personal attention. Say, if an employee needs 50,000 urgently and he comes to the
director, we personally cannot help them as we are not banks or financial institutes, but
we give employee his salary in advance so he is able to tackle the situation and amount
is recovered in next one year.- says Mr. Nayak. There are many other things that TCubes
does for their employees so as to keep them satisfied. Satisfaction leads to loyalty
towards the company. Satisfaction leads towards the branding of a company. Now, these
things are not written on their website or their offer letters or not published in any news
bulletin. These are salient features. People leave the company for their growth but
there are people who came back to the company after one or two years also as they
were not satisfied in their new jobs. At Tcubes, they have culture that any employee can
talk to anyone including the Directors. This increases their comfort level.

This is an open ended case. What steps should

TCubes take in order to overcome the problems
they are facing. Please identify the problems and
provide necessary solutions.