Proven Growth Strategies for IT Companies
For most IT businesses, growth is the main objective. Thus, significant business decisions are made based on what can contribute to the company’s overall success and continued growth. There’s high competition in the IT sector, and even though every business is unique, unless the company can communicate its competitive advantage, it might not be able to stand out.
Gain the Competitive Edge
Business growth can be organic, internal, strategic, or through mergers, partnerships, and acquisitions. To achieve and sustain success in a rapidly changing tech space, a digital growth strategy with price differentiation can help many IT companies. With the help of a growth strategy firm, your enterprise can find its competitive advantage and communicate it to your customers!
Thriving in the Chaos
The technology space is now a cluttered market with similar products and services. While software companies are doing well, customers are spoilt for choice and often decide based on price point. Growing with an effective business scaling strategy can be challenging in such a competitive environment. Thus, a solid competitive advantage with a key differentiator can accelerate growth. Increasing your customers and boosting sales can happen in various ways and might require different types of investment. Having the insight to build an innovative business development strategy will create real, sustainable growth.
Formulating a Winning Strategy
There are multiple ways to create a differentiator for your company. It involves analyzing your current state and the context of your business. Then, companies can implement various growth and development strategies to maximize market expansion and reduce risks. Choosing a business scaling strategy that aligns with your goals, budgets, timelines, competition, and expected market share is also essential.
Experts also recommend implementing more than one strategy for growth to reduce your risks and maximize opportunities for market share expansion. An innovation growth strategy is the most effective when you’re true to your brand positioning, have deep audience insight and are ready to pivot as needed.
Top 5 Business Development Strategy Solutions
1. Create a Niche for your company
Position yourself as an expert in a particular technology or IT service and become a specialist to attract niche customers. You can leverage cutting-edge technologies for higher value addition or deliver training or expertise to your teams on any niche technology for a competitive edge. By developing deep expertise in a particular industry, you can become the first choice for many unique customers.
KPIT, a technology company, has created a niche by focusing on Automobile industry. It has distinguished itself by becoming a cutting-edge automotive solution provider. They are investing heavily into connected vehicles and partnering with Global players to innovate & co-create the future.
2. Focus on Cost Leadership
Deliver a competitive pricing model in areas where price point matters the most. With the help of price differentiation, you can cater to more clients, tap new geographies, and retain old customers. Economies of scale, efficient operations and streamlined processes can help you reduce your costs. Flexible pricing models can also become a great differentiator from your competitors, and they can help your clients get more value with affordable pricing.
Xiaomi Corporation is a Chinese multinational technology company that has made cost leadership a key part of its business model. By using an online-only sales model and keeping its profit margins low, Xiaomi has offered high-quality products at affordable prices. With cost leadership, Xiaomi has rapidly gained market share and has grown its business while offering value to its customers.
3. Establish Strategic Partnerships
Collaborate with companies to complement your services and expand your business. As a result, you get access to their customers and vice versa. You can also receive referrals from the strategic partner and leverage the goodwill built around their brand. Most promising strategic partnerships and collaborations focus on an improved or unique product that is impossible individually. Thus, you get to expand to new markets and provide integrated solutions to your most prestigious customers.
Reliance Jio is a telecommunications company in India that has established strategic partnerships with Microsoft, which has resulted in the development of a cloud-based platform called Jio-Microsoft Azure. By partnering strategically, Jio has rapidly expanded its customer base, offered a wider range of services, and positioned itself as a leader in the Indian technology industry.
4. Move up the Value Chain
For IT companies, embracing cutting-edge technologies and consulting in digital transformation can be an added advantage. A strong focus on cybersecurity and privacy with robust access control measures can help you stand out. Embrace this strategy for growth and help your customers leverage modern technology architecture that’s robust, safe, and secure. Exceptional customer service also helps IT companies enhance customer value through personalized experiences. Brainstorm what your business can do for your clients in a way that no one else can – it will enrich your value and customers’ perception of your brand.
Tata Consultancy Services (TCS) has traditionally been known for its software development and IT services. However, in recent years, the company has moved up the value chain by focusing on digital and cloud-based services. TCS has developed a range of digital solutions, including analytics, automation, and artificial intelligence, which has helped the company to diversify its revenue streams and increase its profitability. In fact, in 2021, TCS was ranked as the most valuable IT services brand globally by Brand Finance.
5. Innovate Extensively
Enjoy the first-mover advantage through an innovation growth strategy wherein you identify the next technology S curve and develop new software, applications, API products, etc. You can invest in developing new products or services to formulate the best long-term growth development strategy. Focus on research and development, adopt new technologies, embrace modern architecture, or create new business models for your business development strategy. Utilizing innovations can give you a new direction to potentially disrupt a market.
Ola, an Indian ride-hailing company, introduced several innovative features in its app, such as Ola Play (in-car entertainment) and Ola Money (digital payment system). Ola has also invested heavily in developing electric vehicles and is working to create a more sustainable transportation ecosystem. These innovations have helped Ola differentiate itself from competitors and establish a strong market position in India.
Key Benefits of Developing a Growth Strategy for IT Companies:
Enhances your Value Proposition – It helps you attract more customers and generate higher revenue.
Boosts ROI – It maximizes your ROI from marketing and sales by targeting segments that need and value your differentiators.
Contributes to Brand Building - It strengthens your brand identity and helps attract and retain exceptional talent.
Helps with New Offerings –It gives you a better direction and focuses on developing innovative offerings and new capabilities for success.
Employing a growth strategy in the technology and IT space can be challenging. New competitors and innovations are rapidly entering the market every day. Also, products that are indispensable today can become obsolete tomorrow. At the same time, loyal customers are also being wooed from different angles. In such cases, a robust and sustainable growth strategy for IT companies is essential to give your business the best chance of success.
At InUnison, we help you determine the right strategy for growth after a detailed understanding of your business. Our team can support your efforts to scale up and future-proof your business with systematic and strategic growth plans.
Let’s connect to ideate the next big transformation for your company.
