Advisory Business Model_casestudy

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."