Uphar Singhal

Project 1

Root Problem: The company is facing difficulty in improving its margin at a

competitive rate compared to other IT companies in India.

Profitability Tree - Revenue:

1. IT Solutions and Maintenance: a. BFSI sector (46% revenue) b. Healthcare

sector (21% revenue) c. Other sectors (33% revenue)
2. Products: a. DevOps Bundle b. Cybersecurity c. Digital Marketing (90%
revenue)

Profitability Tree - Cost:

1. Permanent Employees: a. India (73% of 5000+ resources) b. Other countries

(27% of 5000+ resources)
2. Contractors: a. India (60% of 690 contractors) b. Australia (5% of 690
contractors) c. Asia Pacific centers (7% of 690 contractors)

Potential Growth for Sectors in Geographical Locations:

1. India: a. BFSI sector (promising) b. Healthcare sector c. Other sectors

(exploration needed)
2. US: a. Healthcare sector (promising) b. Other sectors (exploration needed)
3. Europe: a. Healthcare sector (promising) b. Other sectors (exploration
needed)

Recommendations:

1. Revenue: a. Focus on expanding the product-based business, especially the

digital marketing product, which generates 90% of the revenue. Invest in
product development, marketing, and sales to capture a larger market
share.
2. Cost: a. Evaluate the cost-effectiveness of contractors and identify
opportunities to optimize their utilization. b. Explore options to increase the
efficiency and productivity of permanent employees to reduce costs.
 Uphar Singhal

3. Geographical Expansion: a. Invest in the US and Europe markets, specifically

targeting the promising healthcare sectors. Develop specialized solutions
and services for these sectors to cater to their unique needs and increase
revenue. b. In India, concentrate on the BFSI sector, leveraging the
company's existing strength. Develop innovative solutions and build strong
relationships with key clients to drive revenue growth.
4. Acquisitions: a. Identify smaller organizations specializing in niche
technologies and with a larger customer base that aligns with the
company's target sectors and regions. b. Acquire these organizations to
expand the customer base, increase revenue streams, and create cross-
selling opportunities. This will also enable the company to leverage the
acquired organization's expertise and gain a competitive edge.

By following these recommendations, the company can enhance its

revenue streams, optimize costs, and strategically expand its business,
ultimately leading to improved margins and better competitiveness in the
market.