Tech firm banks on new data law, foreign market for revenue growth
Technology company tTech Limited is looking abroad and to coming regulation for revenue growth. CEO Chris Reckord says the company wants to increase revenue and boost profit through overseas relationships and industry needs that will arise from the Data Protection Act, now waiting for an effective date to become operation.
The 2020 Act, which seeks to safeguard the privacy and personal information of Jamaicans, was passed by both Houses of Parliament last year. While they wait for Government to name an effective date, industry players like tTech have been hosting sessions aimed at building awareness about the pending statute while at the same time ginning up business.
“We’ve had positive opportunities, signed up customers and revenues flowing from each of those events so far,” Reckord told shareholders on Tuesday about the interest generated through a seminar series about the new law.
Getting companies compliant with the law holds opportunities for the technology firm and others.
“What we did was to work at the higher level with existing customers to assess the level of compliance and their present technological environments,” Reckord said.
The company will be formalising its marketing and client education pitch around the new legislation with a public launch at the end of September to involve prospective customers. The tech firm expects a pipeline of new business from the effort.
The hunt for new business appears to have positively impacted the numbers of the listed junior market company. Revenue for the half-year ended June 2021 is $204 million, up 20 per cent over the just over $170 million for the corresponding period in 2020. Net profit is up nearly 23 per cent to $15.6 million for the half-year compared to $12.7 million for the similar period in 2020.
Reckord says the increased revenues was due to an uptick in enquiries around IT support services as the full effects of the COVID-19 pandemic were felt by businesses.
“A number of folks thought that they were ready and equipped for remote work, and having made an attempt or two, they realised it wasn’t so,” Reckord said.
Responding to questions, Reckord noted that while the company’s customer base did not grow, there were a few small projects from which the firm derived new customers.
“Once we get involved with companies like these, we try to convert them into longer-term contracts. We were successful with one or two but the work continues,” he said.
Overseas business is also attracting tTech’s attention. Reckord said tTech recently took a decision to become part of an international peer group that will allow for partnerships that can lead to more business. Reckord is agreeing with Executive Chairman Edward ‘Teddy’ Alexander that there are good prospects in that arena since overseas companies are more alive to the idea of outsourcing the running of their IT systems and paying more for those services.