In anticipation of the growing US demand for highly skilled development resources, a US offshore IT services company opened up a US sales office and additional development facilities to respond to the anticipated demand. However, after initially winning business from several US customers, it achieved no customer base growth, and its' revenue started to decline. The company asked one of PST’s managing partners to help them understand what actions they should take.
After initially interviewing key executives in the firm, conducting a brief analysis of the market, the managing partner recommended that they re-look at their US strategy, their operational plans, levels of investments and business objectives.
To understand the company’s portfolio, to get a broad base view of their skills and capabilities, and their view of the market, the PST managing partner kicked off the work by leading a number of work sessions with the firm's executive team, and work sessions with the sales team and development resources. Subsequently a market research effort was initiated to understand the market, market trends and competitive forces. Selected customer assessments were conducted to understand first hand the company’s strengths, weaknesses, and customer needs. And, the firm's finance resources were engaged to evaluate financial impact of various actions and tradeoffs.
The effort concluded with new business and marketing strategies. These included a re-prioritization of the target market segments, an expansion of the company’s offering portfolio to higher value solutions, additional investments in US marketing, new sales measurements and incentives, and business processes to optimize delivery capabilities and to create a tighter linkage between resources in the US and the off-shore resources. A strategy implementation timeline was developed, and a management system was defined to ensure focus. With a clearer understanding of the market, their strengths and weaknesses, and specific operational plans, the company’s executive team developed a new revenue plan with clear targets to achieve the desired market share and profitability objectives. |