FINALATICS BUSINESS ANALYST

INTERNSHIP
PROJECT-1

Root Problem: The company is struggling to improve its margin at a

competitive rate compared to other IT companies. It is considering acquisitions
as a strategy to address this issue.

MECE Breakdown:

Part 1: Revenue
1. Service Revenue
- IT Solutions and Maintenance (60%)
- BFSI Sector (46%)
- Healthcare Sector (21%)
- Other Sectors (33%)
- Products (40%)
- Digital Marketing (90%)

Part 2: Cost
1. Employee Costs
- Permanent Employees (73% in India, 27% outside India)
- Contractors (60% in India, 5% in Australia, 7% in Asia Pacific)

2. Margin by Sector and Region

- Good Margin: BFSI (42%), Retail (39%), US (48%), Europe (44%)
- Low Margin: India (9%), Asia Pacific (14%)

Part 3: Potential Growth and Strategy

1. Potential Growth in Different Sectors and Regions
- Healthcare Sector in US and Europe
- BFSI Sector in India
- Other Opportunities

Recommendations:

1. Acquisition Strategy: Acquiring smaller organizations specializing in niche

technologies and having a larger customer base can help the company expand
its business and improve margins through cross-selling opportunities. The
acquisition strategy should focus on companies that align with the company's
main sectors of BFSI, Healthcare, and other potential growth areas.

2. Investment Focus:
US and Europe: Given the promising potential growth in the Healthcare sector
in these regions, the company should invest more resources and expand its
offerings in this sector to capture a larger market share.
India: While the BFSI sector is already a significant contributor, the company
should explore further opportunities for growth within this sector by offering
innovative solutions and services to Indian clients.
Other Opportunities: The company should also consider exploring other
potential growth areas to diversify its revenue sources and reduce dependency
on any single sector.

3. Margin Improvement:
- Focus on cost optimization, especially in low-margin regions like India and
Asia Pacific, through efficient resource allocation and operational
improvements.
- Enhance value-added services in high-margin sectors like BFSI and Retail
to further increase margins.
- Continuously monitor and adjust pricing strategies for products and
services to ensure profitability.
4. R&D and Innovation: Invest in research and development to enhance
existing products and develop new solutions that cater to emerging industry
trends and demands.

5. Partnerships and Alliances: Form strategic partnerships and alliances with

technology leaders and innovators to leverage their expertise and access new
markets.

Result Expected:
By following these recommendations, the company can strategically improve
its margins, expand its customer base, and position itself for sustainable
growth in the competitive IT industry.