A newly established IT firm specializing in
outsourcing and networking solutions with many
professionals and lucrative contracts.
The leaders of the IT firm
realized that they were very close to financial
bankruptcy and needed commercial solutions to
put themselves on track to profitability again.
Realizing the firm had too many
employees for the income the contracts
generated, the needs were to cutback in fulltime
employees and provide more contract services to
outsourcing professionals. Discussions were held
on merging or selling the firm to companies with
similar goals. The solution came down to a
firm-wide restructure to remain profitable in a
highly competitive IT market.
The plan was to do a case by
case study of professionals that were on staff
and to make definite cutbacks based on defined
needs. Consulting was done on office
reorganization and efficient planning, and sales
of the firm's contracts to other service firms
to increase capital. Office relocation to more
efficient space was considered, but set aside
for future consideration pending the firmís
growth in revenue.
The overall plan included:
ē Understanding the firmís
business, culture and environment
ē Analyzing the firmís contracts and profitable
ē Delineating expenses that could be cut
ē Identifying key measures needed in remaining
competitive while fair to both clients,
employees and outsourced professionals.
The firm to this day remains
profitable and is working on office relocation
for more efficiency and organization. We are
providing the services to help make this firmís
relocation more economical.