New WashingtonExec Series:
The possibility of sequestration, or automatic budget cuts that could take effect on Jan. 2 if Congress fails to agree on how to cut $1.2 trillion dollars from the federal budget, has some in Washington, D.C. thinking ahead. In a new series, WashingtonExec is asking federal contracting leaders their thoughts on the situation, how it will impact business, and the road ahead.
Karsun Solutions co-Founder and Managing Partner Sundar Vaidyanathan had this to say:
“Karsun Solutions is a small business providing enterprise modernization services to federal agencies. Majority of our $10m revenues is expected from engagements with our end customer GSA.
Sequestration will have a broad impact across entire federal government and GSA will not be an exception. Reduced spending from other agencies will result in reduction in GSA’s fees for services and hence, its budget as well. We, at Karsun, are addressing this situation in a couple of ways.
From a sustenance perspective, we are working with our primes to understand which projects are likely to be impacted by sequestration.
We are also exploring areas where the investment is likely to flow-in.
We currently expect projects involving innovations such as cloud platforms, mobility and BPM/SOA are most likely to be funded and hence we are investing on training on these skill-sets so that our current resources can be shifted to these projects. Additionally, we continue to maintain a lean organization with minimal overhead to contain our cost structure.
From a growth perspective, we are looking at two major possibilities:
(1) Teaming with our business partners (large and small) to penetrate other federal agencies (2) Aggressively pursuing commercial opportunities. Based on our conversation with a couple of large systems integrators we understand their cost of bringing innovation to either internal projects or external client engagements is still prohibitive and they are looking to partner with small businesses like Karsun Solutions in implementing innovations cost effectively. To that end, we have begun to establish long-term relationships with a handful of large System Integrators.”
