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Oracle orders Klugo Group to gear up for growth

Oracle orders Klugo Group to gear up for growth

NetSuite partner restructures and actively recruits for expansion

Klugo Group CEO, Annaliese Kloe

Klugo Group CEO, Annaliese Kloe

Following Oracle’s $US9.3 billion move in acquiring cloud-based financials vendor, NetSuite, in July 2016, the software giant is urging its partners to shift into gear for growth.

In early December last year, Klugo Group was born as NetSuite partners Klugo and Outserve, combined forces to accelerate growth together as one of NetSuite’s top tier partners in Asia-Pacific.

“We changed the structure of the business so that we can grow,” Klugo Group CEO, Annaliese Kloe, told ARN.

“With NetSuite and Oracle now onboard together, we are one of the top three partners for the Asia-Pacific region. This means that they will want to grow five-fold over the next five months.”

“Oracle have expressed they want to to get out there and grab the market share, so they’re going to be helping the top tier partners grow and develop. Our structure has changed to cater for that,” said Kloe.

After achieving NetSuite "5 Star Partner" status and growth over the past two years, Klugo said it had struck the strategic deal with Outserve to provide NetSuite implementation and support services.

The partnership enabled Klugo to focus on NetSuite business and software development, whilst Outserve provided consulting, implementation, and outsourced accounting services for the customer.

At the time, Kloe said after two years of working successfully with Outserve, the Klugo board decided that merging with Outserve was the most effective way to expand.

“I think its also about really gearing up for growth,” explained Kloe. “We have now segmented our business to focus on SMB. So we have effectively realigned how we go about selling to small business. It will now all be about making that focus as efficient as possible.”

As of 1 January 2017, all employees contracts were finalised - a total number of 45 as a result of the merger. However, according to Kloe, this number is set to skyrocket.

“We have employed another four people coming onboard and we suspect we will have to have an ongoing recruitment plan,” she said.

“We are looking to recruit another person for business consultancy up in Sydney. We will then grow both our implementation teams in Sydney and Melbourne. Adelaide is currently our major pool of managed services resources, but I think the team will grow everywhere.”

“We have got four new roles going on at the moment. We are just about to bring onboard a very senior consulting manager and a new accounts manager in Adelaide. We use an outsourced HR agency and let’s just say they are very busy.”

According to Kloe, the long-term hiring strategy will be based on sales success.

“We will recruit people as we sell more systems. We are probably going to run a bit ahead of the curve, but not too fast because we don’t want to burn cash.”

In line with Klugo Group’s expansion plans through a recruitment strategy, Kloe told ARN that an acquisition would also be a move to consider.

“We will be actively looking to acquire other businesses over the next 18 months. It would be similar practices or it could be smaller organisations who want to be part of a bigger team. It could also be ones that give us immediate growth in different areas like in Sydney or Queensland.”

“I think we will also grow through acquisitions of other players. I can say we will be significantly bigger than what we are now.”

With growth in mind, Kloe added that the business is still in the transitional process, with “the basics” still left to do.

“We have still got the basics to do - business cards and logos and phones and answering machine messages and things like that. We are also in the process of realigning our systems and processes at the moment, so ensuring we have common systems across the two organisations,” she said.

“However, it is pretty much systems as normal because we have been working alongside each other for the last couple of years anyway. If anything, there is comfort now that we are one organisation.”

“In the past, our customers obviously bought from us and believe in what we do. Having the merger formalised as one gives them more comfort.”












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