I recently came across an article discussing Info-Tech Systems, a Singapore-based software-as-a-service (SaaS) company focused on serving small and medium-sized enterprises (SMEs). While I was initially interested in understanding the company from an investor’s perspective, the article provided a broader look into its business model, management philosophy, growth plans, and views on artificial intelligence.
Rather than viewing this as a stock analysis or investment thesis, I approached it as an opportunity to better understand how a relatively young listed technology company is positioning itself for future growth.
Here are some of my key takeaways from the article.
Understanding What Info-Tech Systems Does
Info-Tech Systems operates primarily as a SaaS provider, offering software solutions that help businesses manage their day-to-day operations.
Its product suite includes:
- Human Resource Management Systems (HRMS)
- Payroll software
- Accounting software
- Customer Relationship Management (CRM) solutions
- Workforce management tools
In addition to software services, the company also operates a training business through Info-Tech Academy, which offers technology-related courses, particularly in artificial intelligence.
One aspect that stood out to me was the recurring nature of its revenue model. Customers subscribe to its software services and pay recurring fees rather than purchasing software outright.
The article also mentioned that subscription fees are collected a year in advance. This differs from many businesses that invoice customers monthly and may provide greater visibility into future revenue.
A Business Built Around SMEs
Another point highlighted in the article was the company’s focus on SMEs.
Large enterprises often have complex requirements and may develop customised software solutions internally. SMEs, however, frequently rely on third-party software providers for payroll, accounting, and human resource functions.
Management appears to view this segment as a long-term opportunity, particularly in Singapore where there remains a large base of SMEs that continue to digitalise their operations.
The article cited an independent study estimating that Info-Tech Systems held a 9.8 per cent share of Singapore’s cloud-based HRMS and accounting software market in 2024.
While market share figures alone do not determine future success, the statistic provided some context regarding the company’s existing position within its core market.
What Stood Out About Its Expansion Strategy
Perhaps the most interesting aspect of the article was the company’s approach to regional growth.
Instead of aggressively entering multiple countries through large-scale investments, management described a strategy centred around existing customers.
The idea is relatively straightforward. As customers expand into markets such as Indonesia, Vietnam, and the Philippines, Info-Tech Systems aims to continue serving them across those markets through a unified software platform.
According to management, this allows customers to manage their workforce and operations through a single solution regardless of geography.
From my perspective, this approach differs from the traditional expansion playbook often associated with technology companies. Rather than entering a new market first and then searching for customers, the company appears to be following existing customers as they expand.
The article suggested that this strategy may strengthen customer retention while allowing the company to avoid some of the pricing pressures that could arise from operating independently in lower-cost markets.
Whether this approach proves scalable over time remains to be seen, but it was one of the more distinctive ideas discussed in the article.
Singapore Remains the Key Market
Although the company has operations in multiple countries, Singapore continues to be its primary source of revenue.
According to the article:
- Singapore contributes approximately 75 per cent of revenue
- Malaysia contributes less than 20 per cent
- India and Hong Kong account for the remainder
This concentration naturally means that developments within Singapore remain important to the company’s performance.
Management expressed confidence in the Singapore market, citing continued digitalisation efforts and a sizeable SME base.
One broader observation I had while reading this section was how closely technology providers can be linked to government-led digitalisation initiatives. In markets where governments encourage technology adoption, software providers may benefit indirectly from those policies.
The Role of Government Support
The article repeatedly referenced the role government programmes have played in supporting technology adoption and skills development.
This was particularly evident in the discussion around Info-Tech Academy.
According to the article, training revenue increased significantly during the second half of 2025 as Singaporeans and permanent residents utilised available SkillsFuture credits before they expired.
As a result, revenue from training services rose sharply during the period.
One thing I found notable was how the academy serves more than one purpose.
Beyond generating revenue directly, it also appears to create opportunities to introduce customers to the company’s software ecosystem.
The article suggested that management is considering extending the academy model to other markets as well.
It will be interesting to see whether the training business develops into a larger contributor to overall revenue in the future.
Management’s View on Artificial Intelligence
No discussion of a technology company today feels complete without mentioning artificial intelligence.
The article devoted significant attention to how management views AI and its impact on the business.
One message came through clearly: management does not see AI as a threat to the company’s existence.
Instead, AI is viewed as another technological shift that changes how work is performed.
The company has already begun incorporating AI features into its software products. These tools are intended to help customers perform analyses and access information more efficiently.
Management also noted that AI is helping accelerate internal software development.
This caught my attention because much of the public discussion around AI focuses on customer-facing applications. However, the productivity gains for software developers themselves may be equally important.
If development cycles become shorter and more efficient, software companies may be able to launch new features faster than before.
Why Management Believes Software Demand Will Continue
One of the more thought-provoking comments in the article was the CEO’s response to concerns that AI could eventually replace software businesses.
His argument was that while AI may change job functions, organisations will still require systems to manage employees, payroll, compliance, and operational processes.
For example, even if certain HR tasks become automated, businesses would still need a platform to maintain employee records, process salaries, and manage leave entitlements.
Whether one agrees with that view or not, it reflects how management is thinking about AI’s long-term impact on its industry.
Rather than viewing AI as a replacement for software, the company appears to see it as a feature that becomes integrated into software.
Expanding Beyond Existing Products
Another topic discussed in the article was the company’s intention to broaden its software offerings.
Management indicated that it is exploring several new solutions that could be added to its existing product suite.
One example mentioned was a point-of-sale system targeted at retail and food-and-beverage businesses.
I found this notable because it suggests the company is seeking growth not only through new customers but also through additional products.
For software businesses, expanding the number of services offered can potentially increase the value derived from each customer relationship.
At the same time, entering new software categories introduces additional competition and development requirements, making execution an important factor to monitor.
Understanding the Company’s Operating Structure
The article also provided insight into how Info-Tech Systems organises its workforce.
More than 300 of its approximately 600 employees are based in India, primarily in IT and backend functions.
Management described this as a core part of the company’s operating model.
The arrangement allows the company to access technical talent while maintaining a cost structure that differs from businesses relying entirely on higher-cost labour markets.
The article noted that labour represents the company’s largest expense category.
This section reminded me that software businesses are often perceived as asset-light, but people remain one of their most important resources.
The ability to recruit, retain, and manage technical talent may be just as important as technology itself.
A Founder-Led Company
The article also spent some time discussing CEO and co-founder Babu Dilip’s background.
He arrived in Singapore in 2000 during the aftermath of the dot-com crash and later helped build the business into a publicly listed company.
Today, he remains a major shareholder.
I generally find founder stories useful because they provide context about how management thinks and makes decisions.
In this case, the article highlighted a recurring theme of adaptability — whether in responding to market changes, adopting new technologies, or identifying emerging demand for training and digitalisation services.
While biographies do not necessarily determine future business performance, they can offer insight into a company’s culture and leadership philosophy.
Final Thoughts
After reading the article, my main takeaway was that Info-Tech Systems is positioning itself around three themes: recurring software revenue, customer-led regional expansion, and the adoption of artificial intelligence.
What stood out was not necessarily the company’s financial performance, but how management thinks about growth. Rather than pursuing rapid geographic expansion, the focus appears to be on supporting existing customers as they expand into new markets. At the same time, the company is looking to broaden its software offerings while integrating AI into both its products and internal development processes.
The article also highlighted the importance of Singapore to the business, the role of government-supported digitalisation initiatives, and the growing contribution from its training division.
Whether these strategies translate into sustained growth remains to be seen. However, the article provided useful insight into how management views the opportunities and challenges facing the company in the years ahead.
For me, the article served as a useful introduction to how Info-Tech Systems operates and how its leadership team is approaching the next phase of the company’s development.