Fortech Unveils Upgraded Offering as Part of its Business Strategy
03 August 202128 July 2021 | News
- Fortech announces significant investments as part of its new business strategy.
- Joint Ventures, Software Products, Mergers & Acquisitions, Start-ups financing, and Niched Software Services gain the spotlight on the strategic agenda.
- Refined group structure and hiring plan to support a projected turnover of 40 million Eur for the current fiscal year and an annual increase of 25% YoY in the next period.
After ending the previous fiscal year with a turnover of ~€33,5 million (>20% CAGR) in the context of the pandemic, the Fortech Group looks ahead with a new ambitious strategy. The business aspires to a turnover of 40 million Eur in the current financial year and a projected 25% YoY growth in the upcoming years. Hence, it adjusted its strategy, capabilities, and leadership structure to support it. Starting with the second quarter, Fortech upgrades its software services offering to meet the urgent needs among clients as pandemic-induced digitalization accelerates across business sectors.
The strategic plan features a three-fold commitment:
- The establishment of a new-branded Investments Division, which complements Fortech’s end-to-end software outsourcing services. Fortech Investments invites collaboration – whether from start-ups and founders – to build the next-generation of applications the customers require today. The investments plan is designed to support four strategic programs: venture capital investments, joint ventures, product development, and Mergers&Acquisitions.
- In the software outsourcing space, Fortech extends its value proposition on two dimensions: by continuing the verticalization process plus approaching horizontal high-growth software areas in the market.
- The company intensifies recruitment and realigns its governance structure in accordance with the new vision.
First Investments Division Under Fortech’s Group Roof
For almost two decades, custom software outsourcing services have been the cornerstone of Fortech’s offering. This year, the company took a bolder approach to broaden the suite of tailored services developed under its group brand by including different types of investments.
Fortech’s approach to investments is centered around four key growth vectors, which converge under a newly formed division, Fortech Investments:
- Venture Capital Investments: this is dedicated to financing start-ups with Seed or Pre-Seed funds to help them build their applications once their idea gained initial traction on the market.
- Joint Ventures Investments: this arm invites established entrepreneurs and businesses who are subject matter experts in their industry to partner and build innovative products.
- Product Development Investments: this is Fortech’s “playground” where its dedicated internal team build turn-key digital products inspired by arising market needs.
- Mergers & Acquisitions Investments: this is where Fortech welcomes and enlists in a unified vision start-ups under the Fortech umbrella, proving them the context to build the products they dream about.
“With a track record of about 5 years, 13 investments cumulating approx. 4mln Eur (some of them in progress), and a breadth of business and tech expertise, Fortech Investments envisions to become a technology innovator that fuels the evolution of small and large business alike,” – declared Valentin Filip, Managing Director of Product Investments.
The latest project supported by Fortech as a lead investor is the telemedicine start-up Telios, while the most successful joint-venture the company participated in is AIPERION. The latest has already launched its first AI-powered risk management solution for institutional investors in less than one year after the two partners signed the collaboration. A reference product started in Fortech is Investory – a videogame that helps children learn about the significance of money from a young age. These samples mirror Fortech’s capability and reliability as a partner for organizations in different stages of their development.
Heading forward, Fortech Investments plans to reach the threshold of 15 Venture Capital investments, open 3-4 new joint ventures and put new products on the market in the medium term.
Upgraded Software Outsourcing Offering
On the software outsourcing front, Fortech continues the verticalization process aiming at providing focus, direction, and an elevated value proposition for each area included in the strategic plan. Industrial manufacturing and professional services are the newcomers to be set in motion immediately. These two add up to the existing areas, which were tested and consolidated in recent years: automotive, healthcare, fintech.
While the company continues to accommodate incoming client requests spanning a wider spectrum of business sectors, the selected few represent a larger part of the business and benefits of strategic investments across the board.
Along with strengthening its vertical-centric approach, the company plans its debut on horizontal niched areas in the near future.
Beyond Traditional On-Demand Software Outsourcing
To ensure the proper delivery of its offering, the organization continues to pivot new engagement and team composition models. It does so to remain relevant to its clients base in the remote world, where speed, agility, quality, security, and collaboration stand more important than geography.
“By employing a consultative approach in the outsourcing space as opposed to purely operational execution, Fortech positions itself as a mature tech partner who meets the clients wherever they are on their quest with technology. We can take a hand in helping the client build a software product end-to-end, we can adopt a “plug-and-play” development approach that enables rapid integration, or we can assist clients to pivot new applications as their business priorities evolve” – added Călin Văduva, Fortech’s CEO.
Testimony to its capabilities stands the accolades and recognitions recently received and the significant market gains reflected by the 15% average growth revenue in the last 5 years. This semester Fortech became part of a selected group of Bosch’s global software suppliers ecosystem after being ranked by IAOP among the best 100 worldwide software services suppliers in H1 and previously recognized by EY, Forbes, or Deloitte.
The Organisation Readies its Capabilities for Next Chapter of Growth
The ongoing development of critical tech expertise paired with a mature hiring approach, solid governance model, and company culture are the elements that have been the backbone of Fortech’s progress. The organization is now redefining these critical drivers to power up the intended growth.
By adopting a refined Organizational Model, Fortech appoints dedicated executive leaders in all key strategic areas and defines transparent decisional, consultative, executive, and operational layers. The most significant changes include appointing the first Managing Director Product Investments, a new Chief IT & Security Officer, and a dedicated Leader for Mergers and Acquisitions area, each responsible for driving the engine of transformation in the corresponding fields.
Alexandra Achim, Fortech’s CHRO mentioned that – “Our journey so far has been nothing but an uninterrupted quest for excellence in software engineering. We chose an approach that revolves around sustained talent development and testing early different team compositions. Doing so helped us navigate the ever-changing market demands and propelled us from 5 to 10 and then to 900+ people. We are committed to further support new levels of innovation, speed, and scale within our clients’ organizations along with a new cycle of growth for Fortech.”
The company plans to intensify hiring to sustain the new strategic plan. Currently, the organization has more than 100 open positions for software engineers, especially experts in technologies such as Java, .NET, React, Angular, Full-Stack, C / C ++, DevOps, and automation testing. These opportunities are available in its headquarters in Cluj-Napoca as well as in its regional offices in Iasi, Oradea, and Brasov. The company is also open to fully remote and freelance collaborations. In 2021, Fortech has been ranked #69 in the most desired 100 employers in Romania in a representative national study conducted by Catalyst.
With a workforce of 900+ people, Fortech’s technical expertise spans across a variety of sectors, from automotive and financial to healthcare and more. Fortech covers the end-to-end software lifecycle development to deliver the innovation, scalability, quality, and speed needed by its clients.