PROJECT 1:

Root Issue:

The core challenge facing the company is its inability to match the margin improvement pace set by
its competitors. This can be attributed to several factors, including high operational costs, narrow
profit margins in specific regions and industries, and a lack of specialized technological expertise.

Revenue Breakdown:

1. Income from IT Solutions and Maintenance:

a. Revenue Distribution by Region:

i. India: Mainly concentrated in the BFSI sector

ii. US: Spread across multiple sectors

iii. Europe: Spread across multiple sectors

b. Potential Expansion Avenues:

i. India: Exploring opportunities beyond BFSI, such as in the healthcare sector

ii. US: Focus on the promising healthcare sector

iii. Europe: Emphasis on the healthcare sector and potential expansion into other industries

2. Product-Based Revenue:

a. DevOps Bundle

b. Cybersecurity

c. Digital Marketing (Contributes 90% of total revenue)

Cost Analysis:

1. Workforce Expenses:

a. Permanent Staff

b. Contract Workers (Costing 1.4 times more than permanent employees)

c. Distribution of contract workers across regions

2. Operational Expenditures:

a. Administrative Costs

b. Infrastructure Expenses

c. Miscellaneous Costs
Acquisition Plan:

1. Pursue acquisitions of smaller firms specializing in niche technologies:

a. Identify firms with expertise in sectors or technologies that complement the existing offerings.

b. Ensure that the acquisition targets possess a robust customer base.

c. Aim to capitalize on cross-selling opportunities to both existing and new clientele.

Suggestions:

1. Expand Product Range:

a. Diversify the portfolio of products to reduce dependency on digital marketing.

b. Explore opportunities for developing new products based on emerging technologies.

2. Geographic Expansion Focus:

a. Invest in healthcare sector prospects in the US and Europe.

b. Investigate sectors beyond BFSI in India to identify growth prospects.

3. Optimize Cost Structure:

a. Review and streamline the utilization and costs associated with contract workers.

b. Implement cost-saving initiatives across operational expenses.

4. Strategic Acquisition Approach:

a. Prioritize acquisitions of firms with expertise in high-growth sectors or technologies.

b. Ensure that acquisitions come with a strong existing customer base for cross-selling
opportunities.

5. Talent Development Investment:

a. Develop training programs to enhance the skill sets of current employees.

b. Recruit specialized talent to bolster capabilities in niche technologies.

6. Enhance Competitor Analysis:

a. Continuously monitor the strategies and performance of competitors.

b. Adjust strategies to maintain competitiveness within the market.