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Managing Your Outsourced IT Services Provider: How to Unleash the Full Potential of Your Global Workforce by Venkatesh Upadrista

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CHAPTER 2

The Profit-and-Loss Constraints on IT Services Provider Organizations

Many IT service provider organizations (SPOs) have high expectations for revenue growth, but few manage to sustainably expand their customer base year after year. Many IT SPOs have high expectations to increase their profitability, but very few manage to achieve profits beyond a certain limit.

A few IT SPOs have been able to grow in terms of both revenue and profitability because they have always been able to strike the proper balance between profitability and quality of service, where quality of service has always been their top priority. They followed a strategy that enabled them to continually increase their client base by delivering high-quality services and being ...

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