Business Analytics Project 1 Root Proble: The company comparable to its competitors in the IT industry. nding it difficult to improve its margins at a rate ofaiya img me Prt ined — Contaton Inet ich rdaeeoyret foteDnoa ‘beret dit (onpaetecas fra ene China! ‘whit odartecot ‘mae ed sce ‘breptinst seer ets s ret neat i ow ogprntis MECE breakdown of the problem: |, Revenue A. IT Solutions and Annual Maintenance Services B. Product-based business 1. DevOps bundle 2, Cybersecurity 3. Digital marketing I. Cost A. Permanent employees B. Contractors 1. India 2. Australia 3. Asia Pacific centersIll. Geographical Locations A. India B. US C, Europe IV. Sectors A. BFSI B. Healthcare C. Retail D. Other sectors (Public sector, Manufacturing, Travel, Entertainment, etc.) Based on the provided information, the potential growth for different sectors in the geographical locations is as follows: India: . Promising sector: BFSI . Other sectors; Potential for growth but not specified US; . Promising sector: Healthcare . Other sectors: Not specified Europe: . Promising sector: Healthcare . Other sectors: Not specified Recommendations: 1. Focus on Revenue Improvement: a. IT Solutions and Annual Maintenance Services: . Invest in strengthening the company's offerings in the BFSI sector in India, as it contributes 46% of the revenue. . Explore opportunities to expand in other sectors in India to diversify revenue streams. . Assess potential growth opportunities in the US and Europe for IT solutions and maintenance services in the healthcare sector. b. Product-based business: . Allocate resources and efforts to enhance the digital marketing product, as it contributes 90% of the product-based revenue. ° Consider investing in research and development for the DevOps bundle and cybersecurity products to increase their market share2. Cost Optimization: a. Permanent employees: . Analyze the cost structure and efficiency of permanent employees, aiming to optimize their utilization and productivity. b. Contractors: . Evaluate the cost-effectiveness of contractors compared to permanent employees. This can be achieved by reducing the number of contractors and increasing the number of permanent employees. . Explore options to reduce the reliance on contractors, potentially by training and upskilling permanent employees in niche technologies. 3. Geographical Expansion: a. India: . Leverage the existing strong presence in India, particularly in Mumbai, Pune, Hyderabad, and Ahmedabad, to further penetrate the BFSI sector. . Explore partnerships or collaborations with Indian companies specializing in other sectors to expand the customer base. b, US and Europe: . Capitalize on the potential growth in the healthcare sector by targeting customers and offering specialized IT solutions and maintenance services. . Consider strategic acquisitions of smaller organizations in the healthcare sector to gain access to a larger customer base and niche technologies. 4. Acquisitions: . Identify smaller organizations specializing in niche technologies that align with the company's strategic goals and have a larger customer base. . Prioritize acquisitions that offer cross-sell opportunities to the existing customer base. . Evaluate potential synergies and cost-saving opportunities that can improve margins post-acquisition. . The company can acquire niche technology companies that specialize in areas such as Al, machine learning, blockchain, and cloud computing. These acquisitions can help the company to expand its service offerings and increase its customer base.