Software Services Firm – Division-Level Analytics, Pricing Strategy & Margin Optimization
About the Software Services Firm Project
DNA Growth partnered with a multi-consultant software services company operating under a hub-and-spoke delivery model. The client had structured operations with a core in-house team and a network of external consultants spread across multiple divisions. Each spoke contributed to various service verticals, but there was no centralized mechanism to track individual or divisional performance, cross-functional efficiency, or pricing inconsistencies.
The company faced several challenges:
- Difficulty in assessing profitability at a micro (consultant/division) level
- Ineffective cross-selling across service lines
- Lack of clarity on whether the current pricing models protect margins adequately
With rising operational complexity and stagnating margins, the company approached DNA Growth to conduct a deep dive financial and operational analysis.
The Solution
Our team executed a comprehensive engagement combining data analytics, consultant pricing audits, and cross-selling performance analysis across multiple service channels.
The engagement included:
- A division-wise performance evaluation, comparing output, profitability, and contribution to overall revenue
- Micro-level pricing analysis for each external consultant, evaluating hourly rates, billing cycles, and actual ROI
- Identification of underutilized consultants and overlapping roles leading to inefficiencies
- A cross-selling opportunity matrix, showing which divisions/services had low but high-potential client overlap
In addition, we built a dynamic margin protection model that enabled management to:
- Simulate changes to compensation structures
- Reallocate work based on utilization and margin impact
- Set benchmark pricing tied to ROI and output rather than standard hourly rates
This aligned with DNA Growth’s broader capabilities in business intelligence, financial modeling, and startup and SME advisory services.
The Impact
Following the implementation of our recommendations:
- The company redesigned its compensation framework to optimize margins without increasing pay
- Partner satisfaction scores improved due to clearer expectations and fairer value attribution
- Gross margins improved by 250 basis points, resulting in profitability gains of over $1.2 million, with zero increase in revenue
- The cross-selling matrix drove 3 new inter-division service bundles, opening up additional upsell opportunities
This project became a blueprint for broader operational restructuring and real-time analytics adoption across the organization.
