01/23/04: Spectrum Software Solutions
6562 Ridings Rd. Syracuse, NY 13206
Phone: (315) 457-7700
Year Founded: 1997
Slightly more than $2 million
• Major players? Frank
Kunnumpurath, owner and president; Tom Flynn, vice president of
information-technology sales; Dr. Ancy Kunnumpurath, director of
• What does the company do? It provides information-technology
(IT) and medical-transcription services. On the IT side, the company
provides on-site human resources for software-application
development. When on-site assistance is cost prohibitive and the job
can be done remotely, the company also provides software services
from experts in a business in India, which is owned by
Kunnumpurath’s other family members. It also matches up clients to
professionals from around the world with hard-to-find skill sets.
Any of the jobs can be long- or short-term projects. “We have the
infrastructure that is almost a worldwide reach and can bring them
to New York. Most recruiters are limited to people in the local
area,” Frank Kunnumpurath says. The company diversified into
medical-transcription services in 1999. It can either provide this
service from the Central New York area or contract from outside the
country for about 30 percent less.
• What are some examples of work you’ve done for clients?
Kunnumpurath identified a person in Singapore about three years ago
who had almost the exact skills Welch Allyn needed. About five years
ago, when Carrier Corp. was implementing an ERP (Enterprise Resource
Planning) application product, it could not find experienced people,
and Kunnumpurath was able to identify and provide experienced
individuals. It has also provided staffing for niche skills to
• What’s an example of offshore work? In Cortland, BMC
(Buckbee-Mears) needed some modification to its custom database and
called on Spectrum Software. “They could not find resources within
their budget, and we were able to help them from our India office,”
• What are the differences between doing a job on-site and from
an offshore location? “With off-shore you’re talking a fraction of
the cost, less than 10 percent of what big companies charge to do it
on-site,” Kunnumpurath says. “As a buyer, you decide where the work
will be done … And there are things we can never get done from
India. Understanding customers and communication can be difficult
from India. But, on the other hand, once that information-gathering
is over here and then the second part is executed from our India
office, it’s all science.”
• Cost of services? Offshore services range anywhere from $15 an
hour to $30 an hour. On-site services range from $30 to as much as
$80 an hour.
• How do the medical-transcription services operate?
Traditionally, doctors have dictated patient information on a tape.
The tapes are either in-house or taken to other places where the
worker would transcribe the information onto paper or a floppy disk.
Spectrum Software has created a system using digital,
voice-recording devices already available in the marketplace, which
eliminates tapes and allows transcriptionists to work virtually from
anywhere in the world, whether it’s their homes, on the beach in
Florida, or in another country.
• How did this diversification help your bottom line? “We were
able to compensate some decline in our consulting, because of a drop
in the IT business, and continue to grow the revenues by 20
percent,” Kunnumpurath says.
• Which makes up the bulk of your business? Revenues are slightly
more than $2 million, with medical transcription now comprising more
than 65 percent. IT on-site staffing is about 25 percent and
off-site application development is about 10 percent.
• What is your background? Kunnumpurath, a certified public
accountant, was a financial analyst with several Wall Street firms
for four years and left because the work wasn’t satisfying. He has
always had an interest in technology, minoring in it in college, and
saw starting Spectrum Software as a way to run a business that helps
clients. “I have a general interest in business,” he says. “I wanted
to see how the value is created. As an accountant, somebody would
look at the profit and see if it was calculated accurately. I was
always beyond that. I would look at how they made that money, how
they were able to buy such and such, and create such as such and
sell it for that price.”
• Are there patents? No.
• How does the company get clients? Word of mouth and clients
finding the business via the Internet.
• Where are clients from? Medical transcription: 15 percent from
Central New York. On-site staffing: 60 to 70 percent from Central
New York. Software development: 20 percent from Central New York.
The rest are spread across the nation.
• Where does the funding come from? All was borrowed from friends
because banks wouldn’t lend him money in the beginning. Kunnumpurath
says he was turned down for a loan because he didn’t have any
collateral and didn’t have any relevant business experience.
• What are some of the obstacles you’ve overcome? Lack of funding
in the beginning and marketing.
• Where will the company be one year from now? Kunnumpurath
expects revenues to reach more than $3 million.
• Five years from now? Spectrum Software will continue its
transcription and software-development businesses and will diversify
into other, ancillary services such as medical coding, radiology,
and maintaining large Web sites for companies, leading to
substantial revenue increases, to at least $10 million.
• Advice to small-business owners: “You have to have a passion
for what you are going to do,” he says. “If you don’t, it can become
miserable for you because business takes a lot from you. I work a
lot more hours than in my employment years. But I also have
Fran LeFort is a freelance writer living in Auburn.