TotalSoft, one of the most important business software providers in Central Europe, part of the Logo group since 2016, ended 2018 with a turnover of EUR 19 million, Charisma Suite generating 70% of the company's total revenue. In the first quarter of 2019, TotalSoft reported 5.4 million euro in revenue, a 16% increase compared to the same period of last year. This year, the company is celebrating 25 years of activity, and estimates for 2019 a 23 million euro in revenue and EBIDTA of 3.7 million euro.
The over 1,000 worldwide customers of TotalSoft are leaders in industries such as leasing & credit, financial-banking, retail, agriculture, services, distribution, health & pharmacy, construction & design, energy, utilities and manufacturing. The highest ratio in the 2018 turnover is represented by the Charisma ERP solutions (50%), Charisma HCM (20%) and the solutions developed on Microsoft technologies (6%). The same percentages are also estimated for 2019.
”After the integration with the Logo international group, TotalSoft went through a period of re-organization and re-thinking of the development strategy. The democratization of technology is the new company driver, impacting the product strategy for 2019-2020. We are developing new software platforms with a focus on accessibility, through easy integration to third-party solutions, moving solutions to cloud and adopting new technologies. Also, we are investing in the integration of AI, IoT and chatbot technologies in Charisma business applications, in order to transform the business processes and optimizing current solutions. The R&D and business development teams increased significantly in order to support all these projects”, said Gorkem Tursucu, TotalSoft CEO.
The largest part of the revenue is generated by the local market (65%), but the external turnover is increasing. Based on the international expansion plans including Charisma Financial Services, Charisma ERP, Charisma HCM, Charisma Medical Software solutions, the balance could turn towards international projects.
During the first part of 2019, TotalSoft experienced a growth trend from many points of view. On one hand, new projects and modules were developed for the existing customers, on the other hand TotalSoft has added new customers to its portfolio, important names in the fields of education, oil & gas, tourism, constructions, healthcare and services.
New solutions and software products in the TotalSoft portfolio
The TotalSoft strategy in the last two years, also valid for the next period, is based on investments concerning products, internal processes and people. Therefore, in 2018 the company invested 2 million euro in the development of its solutions portfolio, and for the current year, has allocated a budget of over 2.5 million euro for this purpose.
Charisma Suite has the highest ratio in the company revenue, and starting with 2019, the portfolio was extended with partner solutions, such as SAP and Tableau. Also, the company provides an unique outsourcing service including, besides the HR and Financial - Accounting services, the digitalization according to GDPR requirements. Recently, TotalSoft also started hosting services and custom solution development, complementing the ERP solution, thus developing a new business direction with an increased potential.
Acquisitions on the local market and expansion in Europe
In 2018, TotalSoft has completed the acquisition and integration procedures of Architected Business Solutions (ABS), a company specialized in business management consultancy, with solid expertise in strategy, business process management, technology and outsourcing. Following this acquisition, TotalSoft became a company with a unique profile in the local IT industry, by consolidating its business service and solution portfolio, as well as the competencies in consultancy and project management.
The first international office of TotalSoft was opened in Germany. One of the most important worldwide customers, Deutsche Leasing, part of one of the largest and strongest international financial organizations, implemented Charisma Leasing solution in all 22 branches, being the only leasing company in the world that chose a group solution. This solution serves customers in 32 countries, another unique feature on the leasing software market. Besides, Charisma Suite for the leasing industry is included in the top 10 solutions for the leasing vertical in Europe, by an independent study published by PriceWaterhouseCoopers in 2017.
The expansion strategy on the international markets also targets other solutions part of Charisma Suite, the most important being Charisma ERP, Charisma HCM and Charisma Medical Software. In 2019, the CIO Applications publication included TotalSoft among the first 10 ERP solution providers in Europe.
External training budget of 300,000 euro for employees in 2019
On the other hand, the company aims to double the number of students or postgraduate students in the internship programs planned for this year. Under the name Charisma Academy, these programs will be run for periods of 3 month, on completion most of the students choosing the employment within the company.
However, the company is not focused mainly on attracting young people passionate about technology, but there is an open mind to employ experienced people, including 50+ old persons, which will ensure diversity and competitiveness.
”We are very much interested in our employees’ experience and we are continuously try to find new methods to improve it. Behind them there is a collaborative environment, based on internal actions, through which we aligned the teams to the same vision, objectives and strategy. Currently, we are in the phase in which the company values are translated into actual behaviors that will inspire our employees-related actions, but also the re-definition of the performance evaluation system. We want our employees to find their inner motivation to contribute to the daily activity and we encourage them more and more to improve their skills, by investing in their training. Actually, in the development strategy, we focus on identifying their strengths and we can do that with the allocated budget of 300,000 euro in 2019, dedicated solely for external training”, mentioned Gorkem Tursucu, TotalSoft CEO.