Aamir Ali Ansari’s Weblog

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Sad Collapse of an IT Giant..Lessons learned

The recent collapse of KalSoft the IT giant of Pakistan has raised lot of eyebrows. Being an active part of its team in recent past, I had learned lessons from their experience. This is always good to expand but a sustained expansion is absolutely necessary to stand strong in storms and economic downturns.

Ground Reality
KalSoft being a subsidiary of one of the largest money changers of the country enjoyed sound support from its parent firm. This enabled KalSoft inject its presence in the region with a big bang. They were one of the few companies in Pakistan which gave tremendous services to the region in collaboration with Microsoft.

Collapse of Giant
The collapse of Khanani and Kalia last year due to government raids and alleged wrong doings had exposed the Software Giant which was not ready for this immediate jerk which halted its 90 degree growth. The balloon expansion of the firm resulted in out of limit salaries and overheads which was not possible for them to manage in the absence of enormous support of KKI (Khanani and Kalia International). This resulted in salary delays and squeezed funds to run day to day chores.

Wrong Doings
The Kalsoft management did one thing extremely wrong, they ignored their strength and kept silence about their bad condition which left their staff wondering about their future. If the company had released its unnecessary and non productive staff from the day one of the crisis, they would have survived for a longer period of time. Furthermore, the absence or hiding of top management in view of government raids had left not so authoritative individuals to face the music of customers and staff.

KalSoft Branding
The KalSoft decided to cash the name of KKI from the day one which had left itself directly hooked up with all bad things associated with KKI. Now they cannot alienate themselves with their parent firm, nor can they sell off the firm having impressive clientele and links in the market.

Turn Around possible?
The turn around in positive direction is still possible if bold and balanced steps are taken but the management seems frozen and is unable to think in positive direction. The journey seems to be towards a sad end with KalSoft either completely closed or frozen to a bare minimal. There can be a long hibernation for the firm which once enjoyed top ranking.


September 10, 2009 - Posted by | Current Affairs, Information Technology | , , , , , ,

1 Comment »

  1. Urdu Proverb: Mara hua haathi bhi sawa lakh ka hota hai.

    Comment by Anonymous | October 12, 2009 | Reply

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