Root Problem:

The company is facing challenges in achieving a compe22ve year-on-year margin

improvement rate compared to other IT companies in India. The company is contempla2ng
acquiring smaller organiza2ons specializing in niche technologies to enhance its margin
improvement rate.

MECE Profitability Tree Structure:

1. Revenue:
- IT Solu.ons and Maintenance (60%):
- BFSI Sector (46% Revenue)
- Healthcare Sector (21% Revenue)
- Other Sectors (33% Revenue)
- Products (40%):
- DevOps Bundle
- Cybersecurity
- Digital Marke2ng (90% Revenue)

2. Cost:
- Employee Costs:
- Permanent Employees (87%)
- Contractors (13%) - Costlier by 1.4 2mes
- Geographical Breakdown:
- India (73% Employees, 9% Margin)
- Other Asia Pacific (14% Margin)
- US (48% Margin)
- Europe (44% Margin)
- Acquisi2on Strategy:
- Niche Technologies
- Larger Customer Base
- Cross-Sell Opportuni2es

3.Geographical Investment Analysis:

- India:
- Focus on BFSI sector with poten2al growth
- US and Europe:
- Healthcare sector is promising
- Other Op2ons:
- Explore addi2onal sectors in India, US, and Europe for diversifica2on

4. Recommenda.ons:
 - Investments:
- Focus on healthcare in the US and Europe
- Strengthen presence in BFSI in India
- Explore diversified sectors in all regions
- Acquisi2ons:
- Target smaller organiza2ons with niche technologies
- Ensure a larger customer base for cross-selling opportuni2es
- Assess the poten2al for margin improvement in acquired en22es

Conclusion:
Acquiring smaller organiza2ons with niche technologies, combined with strategic
investments in promising sectors across different geographies, can contribute to revenue
growth and margin improvement. The company should focus on diversifica2on and carefully
evaluate poten2al acquisi2ons to ensure alignment with its growth strategy.