Businessmodel of NetSol Technologies

Customer Segments

NetSol has a niche market business model, with a specialized customer segment. The company targets its offerings at firms in the global leasing and finance industry.

Value Proposition

NetSol offers three primary value propositions: convenience, risk reduction, and brand/status.

The company offers convenience by making life simpler for customers. Its solution is a fully-automated system that covers the entire leasing and finance lifecycle.

The company reduces risk by maintaining high quality and security standards. It has cleared ISO 27001, ISO 9001, and SEI CMMI Maturity Level 5 (V1.2) assessments, an accomplishment shared by less than 150 companies worldwide. It also operates an “Independent System Review“, a process through which it tests software applications extensively for customers before they go live.

The company has established a strong brand due to its success. It has worked with over 200 finance and leasing companies in more than 30 countries since its founding. It has delivered over 300 implementations with a 100% project success rate. Lastly, it was the first IT firm in the finance and leasing industry to launch a complete line of enterprise mobility applications.

Channels

NetSol’s main channel is its direct sales team. The company promotes its offerings through its website, social media pages, advertising, sponsorships, and participation in expos, forums, conventions, and conferences.

Customer Relationships

NetSol’s customer relationship is primarily of a personal assistance nature. The company utilizes consultants to assist clients with the system implementation process, which can last from three to 18 months depending on scope and complexity.

The process includes activites such as configuration, training, and data migration. Post-implementation, consultants may remain at the client’s site to facilitate a smooth transititon and make further enhancements. At this time, NetSol also provides regular maintenance and support services.

Despite this orientation, there is a self-service component. The company’s website features a “Resource Center” that includes articles and downloads such as white papers and infographics.

Key Activities

NetSol’s business model entails designing and developing its products for its customers.

Key Partners

NetSol’s key partners are the suppliers that provide the materials it needs manage its operations.

Key Resources

NetSol’s main resources are its human resources, namely the more than 1,700 professionals with expertise in the finance and leasing industry. They include consultants, direct sales professionals, and customer service employees.

It has important physical resources in the form of eight strategically located support and delivery centers worldwide.

Cost Structure

NetSol has a value-driven structure, aiming to provide a premium proposition through significant personal service and frequent service enhancements.

Its biggest cost driver is cost of revenues, a variable expense. Other major drivers are in the areas of administration, sales/marketing, and research/development, all fixed costs.

Revenue Streams

NetSol has three revenue streams:

• Product licensing
• Implementation and consulting services
• Maintenance and support services