Founded in 1999, Zanett has evolved from a startup into a $50 million technology services industry firm. What’s driven that rapid rise for the New York-based IT firm? It’s pretty simple—healthcare. In just the past three years, Zanett has gone from about $4 million in healthcare services to more than $30 million in 2013.
“In 2014, I think we’ll see healthcare continuing to grow at a faster pace than the other industries we’re active in, says Vince Vickers, Senior Vice President of Zanett. “There’s just been such a flurry of activity in that area. There were so many burning platforms in terms of regulation and a lot of that money had to be spent, and it was in the areas where we specialize.”
Currently, healthcare accounts for about 60 to 65 percent of Zanett’s overall revenue. “This year, for sure, we’ll still be riding that wave,” he says. But in 2015, a lot of those regulatory deadlines will start to be completed. So next year and beyond, Vickers says he expects healthcare will level out and the other industries start to
play a bigger role.
“I don’t think companies can continue to spend in IT at the levels they have the last few years,” he says. Still, there are many opportunities and healthcare will continue to push the firm forward. The biggest? Business intelligence and analytics. “Traditionally, healthcare has not been a big user of predictive analytics,” Vickers says. “That’s a huge opportunity for us, probably our biggest one.”
And while healthcare is the biggest success story at Zanett, Vickers is quick to point out that it’s not the only one. “We also have a really good public sector practice—state and local government specifically—and utilities story to tell,” he says.
“Those are the areas where we’ve been knocking the cover off the ball so we decided to expand our services and it’s paying off.”
So much so that the firm had to shift from a regional approach to a more national market focus. “At our size now, we can’t really afford to be able to keep people in their local market any longer, which sort of takes away one of the big recruiting advantages we’ve always enjoyed,” he says. “That’s one of those pain points of growing.”
And there are others. If the firm continues to grow at a 20 percent rate, Vickers knows that it won’t be too long before the firm is in an entirely different league.
“When you reach the $50 million mark, you have to start thinking more carefully about your growth,” he says. “For instance, a $100 million company is very different from a $50 million company. So, we have to ask ourselves if we can continue to be the best consulting firm in the industries we’re in and the best firm for our own people at that larger size.”
The 20 percent number continues to be the goal, Vickers says, but Zanett will also continue to revisit that goal to make sure the growth isn’t negatively impacting the quality of the firm.
“Our goal is not to take over the world here,” he says. “Our goal is to continue to grow and continue to be the best firm we can be.”