Strategies for Survival & Growth for Small to Medium IT Enterprises

Recent trends in the IT sector are hurting SMEs as larger companies spike demands in the resource pool. While it is predicted to be a cycle and things are expected to calm down soon, yet one cannot sit waiting for things to happen. Pull yourselves together and mark out a strategy that will work well for your company. Here are some pointers I have put together…

Survival:

To establish breakeven…

• Compare existing Sales Pipeline to the Revenue required to break even.
• Explore ways to reduce costs to lower breakeven point
• Increase intake of manpower at lower levels
• Identify products/services that are not profitable and eliminate or reduce investment of time, infrastructure, and manpower in them

Growth:

• Identify High Growth / High Margin Markets for your Services
• List Potential Targets / Customers
• Explore suitable Sales Channels for this market
• Estimate required Working Capital / Growth Capital
• Create Action Plan Covering Tasks, Responsibilities and Completion Dates.

Profitability:

Once you have figured out Survival, and laid down a plan for Growth, increase profitability by executing it…

• Grow business in high-profit margin Products / Services / Clients
• Negotiate pricing in low-margin contracts/products.
• Review resource mix for each client to improve profitability
• Plan expansion with remote resources targeting new clients who can engage one-to-one with high level resources, and where minimum intervention is required, and you save on infrastructure.
• Resource Optimization
  • Align Resources to fulfill expected demand
  • Measure utilization of each Resource
  • Identify the best models to work in with the various types/levels of resources
  • Identify and target work for underutilized resources.
  • Find work that will help average out the cost of high-level/underutilized resources.

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Synsoft Global has a team of developers based in India who work remotely on projects for clients in countries like the USA, UK, Germany, UAE. We have the experience and the talent that has helped many American businesses streamline their software development process and improve their overall efficiency by swiftly hiring resources from us in India.