Arackal
Saves Money and Reduces IT Costs
Case
#2
How Arackal helps our clients’ Bottom
Line
| |
Before
Outsourcing |
After
Outsourcing |
| |
ISV |
IT
PS |
ISV |
IT
PS |
| Revenue |
100 |
100 |
100 |
100 |
| Cost
of Revenue |
20 |
50 |
20 |
45 |
| Gross
Profit |
80 |
50 |
80 |
55 |
| General
& Administration |
20 |
20 |
20 |
20 |
| Sales
& Marketing |
15 |
7.5 |
15 |
7.5 |
| Product
Development |
15 |
2.5 |
7.5 |
1.25 |
| Technical
Operations |
10 |
10 |
5 |
5 |
| Operating
Profit |
20 |
10 |
32.5 |
21.25 |
| Growth |
- |
- |
+62.5% |
+112.5% |
Assumptions: Costs & profits are based
on an average case scenario & standard assumptions for
such companies
The
above figures clearly show the reduction in costs and the
increase in profitability and profit growth that Arackal brings
to our clients using our Global Software Delivery Model.
There
are clearly collateral advantages in addition to the cost
reductions and profit growth. These benefits include allowing
management/executives to focus on strategic issues such as
business development and improving client relations, and frees
them from non-strategic operational issues. The increased
focus on these important business functions should noticeably
improve the top-line. This important factor is not accounted
for in the above example.
|
