The NIS Management Limited’s journey towards digital transformation under the “Rationalisation and Workforce Automation” initiative showcases how the company adapted to the challenging business environment, particularly in response to the COVID-19 pandemic, while maintaining its legacy in security and facility management. Launched in March 2020, the project aimed to optimise human capital management, enhance client service and boost profitability by adopting digital tools and innovative business strategies.

Background and Challenges

Founded in 1985, NIS has grown into one of India’s leading security and facility management companies, with over 17,000 personnel across 17 states​. However, by 2019-20, the company faced significant operational challenges. Its “Core” to “Associate” ratio—defined as the number of back-office staff compared to field employees—had reached a high of 1:50. This imbalance, combined with a decline in service charges due to increased competition, led to shrinking profit margins​.

The situation was further exacerbated by the pandemic, which severely impacted the company’s client base, leading to the closure of key operations in sectors such as hospitality, education and retail. Meanwhile, critical services in hospitals, airports and government offices had to continue, putting additional pressure on the workforce​. The company was forced to reassess its business processes to ensure survival and sustainability in this difficult period.

Strategic Approach

The primary objective of the digital transformation initiative was to rationalise the workforce and automate business processes to improve efficiency, reduce costs and better serve clients​. The project focused on four key goals:

Improving the Core to Associate Ratio: NIS aimed to reduce its back-office staff while maintaining or expanding its associate staff deployed at client sites.

Reducing Indirect Personnel Costs: By merging departments and encouraging voluntary retirements, the company sought to decrease non-essential expenses​.

Enhancing Productivity: Through skill development programmes and digital tools, NIS aimed to increase the efficiency of its retained workforce​.

Achieving Business Process Automation: The integration of new technologies like QR code scanning, e-attendance systems and geofencing were designed to improve operational efficiency across client sites​.

Implementing Solutions

The transformation involved three key phases, starting in early 2020​. In the first phase, NIS implemented lean management principles inspired by the Toyota Production System. This allowed back-office personnel to work from home while decisions were decentralised to enhance operational agility​.

The second phase focused on digitising shared services. It enhanced its in-house ERP, starspayroll.in, incorporating modules for HRMS, CRM, payroll, operations, and supply chain management​. These digital tools helped streamline client servicing processes and provided the infrastructure to support remote work and agile project management.

Additionally, NIS introduced technologies such as QR code scanning for site access, geofencing to monitor attendance and e-attendance systems that automatically generated billing and wages for field staff​. These innovations not only reduced manual work but also ensured seamless service delivery despite the challenges posed by the pandemic.

The final phase of the project, initiated in late 2021, encouraged entrepreneurship through the “NIS Way Forward” programme. Employees were empowered to become associates and form self-managing teams, operating on a profit-sharing basis​. This innovative model led to the creation of new companies like Rushri Construction and Serviion Enterprises, enabling NIS to outsource key functions like payroll management and financial advising​.

Outcomes and Impact

The digital transformation project produced significant results. The Core to Associate ratio improved from 1:50 to 1:121, allowing the company to operate with fewer back-office staff while expanding its associate workforce​. Monthly indirect personnel costs were reduced by approximately 69%, from ₹7.2 million to ₹4.9 million​.

Furthermore, NIS achieved an impressive increase in client satisfaction. The company’s Client Satisfaction Feedback (CSF) score rose from 3.96 to 4.36, reflecting the positive impact of the automation and digitalisation initiatives on service quality​.

Lessons and Future Directions

NIS Management’s digital transformation serves as a model of resilience and innovation in the face of unprecedented challenges. The company’s successful adoption of lean management principles, workforce rationalisation and digital tools allowed it to navigate the turbulent pandemic period while positioning itself for future growth.

Looking ahead, NIS plans to scale its “NIS Way Forward” model, further empowering employees to become entrepreneurs and fostering an ecosystem of dynamic business teams​. By continuing to innovate and embrace digital tools, NIS aims to sustain its competitive edge in the evolving landscape of security and facility management.

The transformation journey of NIS underscores the power of digital innovation and workforce rationalisation in ensuring business sustainability and long-term growth.