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This is not supposed to be a scalable model, it depends on deep domain expertise of enterprise IT and also would require some hands-on active management and mos
by ak_111 4y ago
This is not supposed to be a scalable model, it depends on deep domain expertise of enterprise IT and also would require some hands-on active management and most importantly recruitment. So it is not your usual private equity play "slash everything by 30%" gain short-term profit, flip it, then watch the company close down in a few years time due to morale and lack of growth strategy.
A semi-generalisable strategy to identify the 90% quick wins in consultancy contracts: look at the consultancy contract, anywhere it says Oracle, IBM, Microsoft, Data Science think about how you can replace that with an open-source stack run by a competent technology team that you will recruit and what impact scrapping all the data science stuff will have.
The crucial bit in this strategy is to offer a package to this new elite tech team that would be competitive with FAANGs, this will be completely surprising to most management of these companies as they are used to paying their tech stuff garbage when in effect they are paying 10x FAANG salaries via the daily rate of McKinsey consultants.
- pjc50 4y agoIt would be interesting to see it tried. It's effectively "digital transformation" with the host/mutator roles reversed. Rather than have an organisation call in outsiders to do the transformation, the transforming group "eats" (buys) the transformed organisation. The risk is definitely in the squishy unknown unknowns that are hard to quantify and therefore get obliterated early on in a digital transition.