Context
In early 2000s, despite reasonable scale and operations, A Mid-IT-Co was a distressed technology staffing organization, with a negligible project portfolio and (-) 20% operating margins. Given the stressed financials and in light of accelerating commoditization of the GDM model, the Mid-IT-Co founding team requested Phaneesh to lead the turnaround of the business.
Approach
Phaneesh took over as the CEO of the Mid-IT-Co and undertook the following transformations:
- Changed the business portfolio of the Mid-IT-Co by systematically cannibalizing staffing / sub-contracting portion of the business with project-based work, which was in turn delivered using the global delivery model at higher margins
- Rebranded and repositioned the Mid-IT-Co in the industry, defined a new portfolio of go-to-market offerings and completely re-structured the organization by bringing all the key markets & offerings under the Mid-IT-Co global brand
- Anticipated the commoditization of technology services and created a strong differentiation for the Mid-IT-Co as well as disruption in the industry by introducing ‘Delivery of converged technology and operations using business outcomes’
Outcomes
Over 11-years, Phaneesh transformed the Mid-IT-Co from a virtually unknown entity to one of the top 10 Indian IT players and one of the most valued enterprises in the global technology services industry:
- Delivered exponential growth in top-line, to clock revenues in excess of $1.2 Bn
- Turned around operating margins to a healthy +25%
- Realized a 70x increase in enterprise value to $4.8 Bn