COVID-19 Impacts on a Cyber Security Company

Courtesy of Rakesh Asthana, Managing Director & CEO, World Informatix Cyber Security

Company Description

World Informatix Cyber Security (WICS) is a cyber security consulting organization and is a trusted partner of governments and global corporations. Key services include cyber security risk assessments, technical vulnerability testing and penetration testing, 24x7 Security Operations Center and US Government cyber security projects. A US-based corporation with offices in Washington DC and Florida and a wholly owned subsidiary in Bangalore, India.

Early Impacts

COVID-19 has had a major impact on our operations, staff locations and client servicing. In the immediate aftermath of the lockdown our immediate focus was on ensuring staff safety and enabling ‘work from home’ protocol. Fortunately, all staff have laptops and strong internet-connectivity from home so it was a smoother transition at first. WICS provided dongles as a backup measure for internet connectivity. A few days later many of our employees in Bangalore had trouble maintaining social distancing in their relatively cramped paying guest accommodations (sometime 2 or 3 to a room) and decided to move the relative safety and roominess of their parent’s homes in their native towns outside Bangalore. Fortunately, no one had any COVID-19 symptoms to carry back to their native places but some did run into problems with internet-connectivity. WICS dongles came in handy. We also introduced 2 management touchpoints to ensure teamwork and coordination of task delivery.

Our Solutions

Some of our project-based work requires onsite presence and these projects were mainly deferred to second half of 2020 — affecting our revenue and resource utilization. WICS had to quickly develop new business models based on servicing global clients using remote access technology and extensive use of video conferencing facilities (Google Hangout, Skype for Business, Zoom etc.). We have had some success and a few of our projects are being delivered in Africa and Asia using the newly developed remote access-based methodologies.

Security Operations Center is focused on monitoring and incident response services and these have largely been ongoing and in fact there is more demand for these services as over cyber attacks have increased since the pandemic. These services are effectively delivered with staff working from home. But we have had to introduce new procedures for shift handovers, touchpoints with clients for staff working from home, etc.

US Government operations work somewhat with skilled specialist consultants and these services are largely unaffected (as of now). Demand has increased.

Ongoing Challenges

Finances have been an area of worry as revenue dips and project delays start to affect cash flows. Two actions have been initiated 1) Reduce non-essential costs (travel, consulting, and some training) 2) Not replacing any staff attrition for 3 months. At this time our cash flow has stabilized specially with increased demand for SOC and specialist consulting services and we expect to have reduced turnover and make a smaller profit for the year. If project business picks up in the second half we will be at par with our 2020 projections.

Not being able to travel will affect our business model. While repeat customers know us and more willing to give us the benefit of doubt to deliver services remotely, acquiring new customers is a challenge.

Staff burnout and skills upgrade may be affected due to duration of lockdown

Loss of any existing customers can have a big impact on revenue and business model as acquiring new customers is proving challenging.

Some Good News

I was surprised how quickly our team was able to move into a ‘work from home’ protocol. Although we had most of the technology in place, we had not driven the model in this direction. Now I believe we could move to 4 days a week WFH model if it would help acquire and keep good talent.

Worldwide clients are all very accommodating since everyone has been equally affected (developing and developed countries).

US Government support for Payroll Protection Program has been a help. We applied when we felt a bit panicky when projects were being delayed or cancelled. In the end we did not really need the Funds as we can cover our costs but now, we do have the loan funds.

Important Factors Moving Forward

• Strong relationships with customers have been key to ensuring a continuing business model.
• The advent of a vaccine would be a key event so that we can begin some limited travel (possibly January 2021).
• Financial troubles due to recession may affect some of our clients with knock on effect on our services in the coming months.

Things to Watch For

The ones to watch as gainers are clearly pharma companies with vaccine development (Moderna, Pfizer, etc.) and COVID-19 treatment (not clear which companies are in the lead), and manufacture of PPE an related medical equipment.

Some countries are likely to use the COVID-19 as an opportunity to bring about major reforms in an albeit stealthy way — witness labor law and agriculture market reforms in India.

A Personal Note

In February, I had traveled on business to Saudi Arabia and Rome (just left on February 22 from Rome) when the COVID was exploding in Italy. We had a Galapagos trip booked in end February which we decided to go ahead with and had a great time. On return via Ecuador (which has been hit badly with COVID-19) both my wife and I got sick with a severe cough (but no other COVID symptoms such as high fever or shortness of breath). Doctors had reverted to telemedicine and discouraged office visits. Fortunately, both of us recovered but it took a a full 2–3 weeks before we were back to normal. We could not and did not get a COVID test done so we do not know if we have had it or not and whether it provides immunity from further infections. Isolation ad sequestered nature of the last several weeks is likely to extend. It is easy to do in our gated-golf communities in Florida with enough space between houses and groceries once every two weeks. I shudder to think about conditions in less fortunate areas in Bombay, Bangalore, and specially crowded slums.

We have also been cognizant of suffering amongst our immediate service staff (27 club employees laid off, etc.) and are doing our best to support them financially.