Most IT expenses are OpEx (Operational Expenses, occurred regularly and exhaust upon completion of task) and very low amount is CapEx. Ratio is as lop-sided as 90:10
We rectify the situation via vendor negotiation, technology rationalization & Process Automation. This way Operational Cost is lowered and the amount saved is invested for Project Success (which really is Business Success of our customer).
This is done by creating a Business Strategy based on a competitive IT strategy, i.e., the business is driven by the optimized IT framework and strategy created by us to provide optimum output at minimum OpEx. This IT framework is created via proper analysis of IT issues and requests. This stretches the dollar invested to the maximum.
This further opens up the bandwidth for optimizing variable capacity, i.e. a mix of Onsite/Offsite talent setup, which again results in significant savings.
Thus, a technology asset is created, due to these systemic improvements, on the back of CapEx in the form of R&D, over a few years. Automation achieved due to this CapEx increases the overall efficiency of the company, thus adding to the margins and creating a significant value increase in the market. Thus, Customer Success, i.e. Business Success is achieved via increased IP valuation, higher returns on the dollar, lower OpEx and higher productivity from human resources involved. Digital asset creation results in higher valuation multiple.