In IT services space, reducing growth rates and increasing pricing pressures are making it difficult for investors to realize targeted IRR. Additionally increased competition and faster commoditization of offshore services are creating unforeseen challenges around cost management and service differentiation. Dramatic improvements in operational & financial parameters are the foundation stones of any value enhancing deal and hence, no support to the company management from PE investor is good enough.
While there is still considerable steam left on demand side growth, it is bottom line and long term business viability that are causes of concern. In a new world, where large multinationals accessing low cost talent pool are fast eroding cost advantage, where do investee companies look for competitive advantage.
Here are the number of strategic and operational challenges companies are facing…
- What should be our revenue multipliers? Is it high end IT services offering, product or semi-product space, transaction based services, Infrastructure automation, SAAS or cloud computing and how should I build it with minimal investments.
- Do I have some hidden capabilities that I built as a service provider and now can be repackaged and sold as a high end service offering?
- How can I rapidly reduce cost in order to counter constant price reductions? How can I distinguish my more productive, less productive and counterproductive assets and how can I rationalize them?
- Do I know which projects are making money for me and which ones are not?
- Do we have adequate program management capacity to run all my programs successfully?
- Am I ready for revenue or margin shocks? Do I have sufficient variability in my cost structure to align myself with the rapidly changing business environment?
Investor community working with us values our strategic understanding of IT business and operational abilities to drive to concrete results. EBO [Explicit Business Outcome], our proprietary & proven methodology, ensures that our business benefits are aligned to our client’s payback. We can help your companies address their most important issues in the following areas:
- Offer project & program management capacities to drive business critical engagements.
- Operational transformation by deconstructing value chain, activity based costing and data driven cost optimization on procurement, hiring, retention and capability building.
- Pre M&A assistance for improving operational & financial parameters.
- Post Merger Integration for generating desired value with minimal business & reputational risks.
- Building services portfolio and constructing client centric service offering by leveraging existing and low hanging capabilities.
- Service offering rationalization, decoupling revenue and headcount correlation, developing product or semi-product strategy.
- Building capabilities around fix price projects, estimations, intellectual property protection, demand driven talent supply chain, bench optimization, Capex to Opex conversion.
- Creation of high performing delivery organization by building new frameworks, methodologies, tools, metrices and business aligned dashboards
- Accelerating offshore move for large multinational by using a judicious combination of strategic analysis and operational abilities.
Please read our complete service offering to get a better view of our capabilities….