Software Development: Driving growth with diversification amid shrinking primary marketInformation Technology
A software company faced collapse when regulatory changes eliminated its primary market. A strategy was devised to diversify revenue streams in allied sectors through ventures and acquisitions.
The strategy succeeded and created three robust revenue streams–consulting, processing, and imaging–that have continued to grow over the past decade.
challenge
A specialist software provider focused on Class Action claims management needed to move from a high reliance on a small client base and develop a broader platform for their capabilities.
solution
Assessment of this specialist Class Action claims market underscored the need for creating a range of associated services spanning Consulting; Claims Processing; and Document Management & Storage, each with different value propositions and payment streams.
The approach leveraged the contacts already established with the current client base and sought out other service providers to form the basis of an acquisition strategy.
results
The resulting business service offering was composed of high end software development and maintenance services; transaction based claims processing; consulting fees based advice and a transaction based document imaging facility. Specifically:
- A boutique consulting company specializing in class actions claims was acquired with fees based revenue base
- Two geographically disbursed claims processing services were secured, each managing separately awarded class action work, and both operating on a transactional service fees basis.
- A document scanning and imaging serves was established as a result of securing work to recover and store documents salvaged from hurricane Katrina operating on a document imaging and storage fee basis