IT business with Tier II bank like co-operative banks- Calculated Risk

After a big recession underway, IT business particularly companies getting into Tier II markets like financial services and banking customers like Co-operative banks and Co-operative societies.

Companies have to mind a point, about the Infrastructure & the knowledge levels of Tier II clients. The companies engaged with the business clients of Tier I like big PSU, would be under risk incase they presume the same business would work for the Tier II clients too. The big reason is the power of Tier II clients spend on Infra and consultations would be a million dollar question.

They are many small vendors in the IT space who survive in the market in doing small application developments & batch process for major PSU like mobile banking, portals etc which includes the organization which I am currently working with.

These small vendors have and had been riding on the base provided by the other big organizations in IT to survive. But if these small vendors’ targets tier an II client which doesn’t had any prior experience with any IT majors, the have to understand the risk and then involve them. It would be presumed that there is more opportunities involved, but this could be a higher risk looking at the cost part of the small vendors for implementation.

The organization which enters the market first would bear the burnt and the rest organizations following should take the lessons learnt by the first entrants.