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The Client

A tier 1 IT services company, the client is a leading provider of IT solutions and services to global corporations. The company offers services, including systems integration, information systems outsourcing, package implementation, as well as software application development and maintenance. The company is the world's first IT services organization to be certified PCMM level 5 and SEI CMM Level 5, and is one of the largest product engineering and support service providers worldwide. Well entrenched across the IT services spectrum, the company's geographical reach spans theUS, the UK, Asia Pacific and the Middle Eastern regions.

Business Context

Leveraging its understanding of the horizontal space, Prayag conducted a comprehensive analysis of the customer portfolio. A total of over 200 customer accounts were categorized as key, stable, low performing or inactive contributors, based on their performance over 12 quarters. With the customer as the central theme, the data was analyzed from the following dimensions -

Size of the account
Vertical presence
Horizontal/service
Revenue contribution and
Growth of the account

A tail analysis of the customer base was done - and it was found that the tail comprised of a large number of accounts contributing reasonably low revenues. This helped identify gaps in new account enrolment and account management.

Prayag consolidated the findings of the customer data analysis, and presented a set of recommendations, which would form key inputs to the client's strategic decision making process.

Benefits

Prayag's analysis gave the client a 360 degree view of the horizontal business' customers, prompting a re-look at its account management practice. This enabled the client bring in greater proactivity in its account management process with improved customer mining, cross sell efficiency, new account enrolment and introduction of improved account replenishment programs.

The comprehensive nature of the Prayag framework also resulted in the analysis being used as a key input for other business divisions.

Prayag Solution

Prayag initiated the business modeling exercise by participating in discussions with the client's management team to understand the service mix, projected revenues, proportion and nature of committed business and company outlook on downstream planning. Drawing upon its deep understanding of the BPO business, the Prayag team identified all the parameters relating to the market, people and infrastructure that would have an impact on the business. Then, the complete business value chain from target revenues to downstream execution was modeled to understand the interplay and significance of various factors.

For example, knowing the revenue target for the year, and the likely client and service mix, the number of resources needed would be derived. This would be further broken down by level, and buffered for attrition and temporary non availability of people (leave, skill mismatch etc). The required numbers would be mapped with the existing numbers to determine the recruitment target and so on.

The exercise involved iterations as the JV partners were evolving their business plan through discussions. The Prayag team worked alongside the business teams to fine tune the model to reflect the latest thinking.

Says Sudha Kumar, CEO, Prayag Consulting, "The whole exercise was conducted in close collaboration with the client's team. Our ability to work with top management and to handle a high impact and high pressure exercise came in handy."

Benefits

The business model prepared by Prayag gave the company a strategic tool which helped in restructuring its business at a crucial phase. The model saw the client through the exit of one of its joint venture partners and re-organizing the business with a new partner.

Says the CEO of the client company, "All our hard work has finally resulted in a partnership of two renowned organizations, which I am sure will help us become a leading BPO in India. HDFC on the 16th of August signed the deal with Barclays Bank Plc for sale of its 50% stake in our company. Your involvement as part of the deal team has been a key factor in making this deal happen."