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Finlatics BA Project 1

Finlatics BA Project 1

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19 views5 pages

Finlatics BA Project 1

Finlatics BA Project 1

Uploaded by

amaankazi1793
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Business Analyst

Experience Program

Project 1

Submitted By -
Name: Amaan Abrar Kazi
Email: [email protected]
College: Vivekanand Education Society’s
Polytechnic
Case Study
An Indian IT Service and product company has an employee base of 5000+ resources all
over the globe. Around 73% of the resources are based out of India (Mumbai, Pune,
Hyderabad and Ahmedabad). Total employee strength includes 690 contractors out of
which 60% are in India, 5% in Australia and 7% in Asia Pacific centers. These
contractors are on an average 1.4 times costlier than permanent employees.

Its customers are across 35 countries mainly in the US (32%), Middle-east (27%) and
Europe (20%).

Its main business is providing IT solutions and Annual Maintenance Services. Though
they provide IT solutions in all the domains, 46% of their revenue comes from BFSI
sector, 21% is from the Healthcare sector and the rest from other sectors like Retail,
Public sector, Manufacturing, Travel, Entertainment etc.

Its product-based business is providing pre-made softwares and applications for


companies. The three products they offer are DevOps bundle, cybersecurity and digital
marketing. 90% of revenue comes from the digital marketing product.

It enjoys a good margin from BFSI (42%) and Retail (39%) sectors and also from
business in the US (48%) and Europe (44%) region. The margin is very low in business
in India (9%) and other Asia Pacific countries (14%).

It is finding it difficult to be at par with its competitors on a year-on-year margin


improvement rate which is 11% v/s 26% by other comparable IT companies in India. To
address this, it is thinking of acquiring smaller organizations which specialize in niche
technologies and having a larger customer base which will help them in increasing its
employee base and expand the business with cross-sell opportunities.

Will the acquisition help in the improvement of margins? If yes, then why? If not, then
what alternate strategy should the company follow?

Instruction Set

1. Identify the root problem and use the MECE (mutually exclusive,
comprehensively exhaustive) principle, discussed already in the module
videos, to break down the problem.
2. Using the profitability tree down structure, divide it in two parts ‘Revenue’
and ‘Cost’.

3. Further branching can be done according to your logic but do keep in mind
that those parameters shouldn’t overlap. E.g. Revenue and profit are
overlapping parameters.

4. For revenue, 60% of it comes from IT solutions and maintenance, and rest
comes from its products.

5. The company is looking forward to investing in India, US and Europe. See


the potential growth for different sectors in these geographical locations.

6. In the US and Europe, the healthcare sector seems promising and the same
for India with the BFSI sector. Explore other options and see what could be
done differently.

7. Finally, provide recommendations for where the company should invest and
what kind of acquisitions it should do.

Root Problem
The root problem for the Indian IT Service and product
company is its inability to achieve a year-on-year margin
improvement rate comparable to other IT companies in
India (11% vs 26%). This indicates that the company is
facing challenges in increasing its profitability and
staying competitive in the market

Factors Contributing To The Problem


 Heavy dependence on the digital marketing product
 Low Margin in India and other Asia Pacific Countries
 Inefficiencies in Contractor Utilization
 Limited Growth in Sectors other than BFSI
 Challenges in Expanding to New Geographical
Markets
 Lack of Product Diversification
 Inability to keep pace with competitors in Margin
improvement

MECE (Mutually Exclusive and Completely


Exhaustive)
It is a problem solving technique that divides the problem into various
parts and forms a kind of an Issue Tree
BSFI Sector (46% of
Revenue)

IT Solutions and Healthcare Sector (21%


Maintenance of Revenue)

Other Sectors
(Remaining Revenue)

Revenue Analysis

Digital Marketing
Product (90% of Revenue
High Margin

Product Based Buisness DeveOps Bundle

Profitabilty Analysis
Cybersecurity

Permanent Employees
Fixed Costs
Salaries

Cost of Goods Sold for


Product Based Buisness
Cost Analysis

Sales and Marketing


Expenses

Variable Costs

Product Development
and Marketing Costs

Contractor Expenses

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