XGen Technologies

Creating a sustainable business model

Ibrahim Al-Khudairy, Saumya Baunthiyal, Sandip Das and Viraj Gupta
10th February 2012

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 XGen. an IT company is looking for implementing a sustainable business model  It strives to move away from a strictly linear model to nonlinear model  Our recommendation:  Acquire small firms in the verticals that XGen is operating in. in order to acquire productized service expertise rather than developing them in house  Transition to Productize Service Offerings for the different verticals within XGen 2 .

000 employees. USD 1.5 billion in revenues  40. presence in 17 countries  Service offerings  Software-led IT solutions  BPO solutions  Remote infrastructure management services  Verticals served     Financial Services Retail and Consumer Telecom Media and Entertainment 3 .

Increasing Indian salaries (+13.9%) High industry employee attrition rates Increasing competition with International players Currency rate fluctuations in the wake of an unstable global economy 4 .

Big 3 Indian Cos MNCs Size XGen Zyme Non-Linearity 5 .

Develop a sustainable business model by focussing on long term growth of the firm and minimizing the impact on the short term profitability 6 .

Inorganic Growth / M&A Acquire companies that provide niche services in the same verticals that X-Gen caters to Productized Service Offerings Build a standardize service footprint to effectively provide the same service to multiple customers Solution Accelerators Invest in R&D and introduce innovative pricing models Leverage high-end resources Focus on the customers or technologies or service areas which generate more revenue per employee 7 .

Merger & Acquisition ? 2.Options Cost Ease of Transition Revenue Short Term Consequence Sustainability 1. Solution Accelerators ? ? 4. Productized Service Offerings 3. Focus on high-end resources 5. Hybrid Model Legend: Well-Aligned Somewhat Aligned Not Aligned 8 .

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