📘 Question
The COO wants to model the savings from consolidating the four acquired engineering teams into a unified organization. Currently the four acquired entities have a combined 480 engineers at an average fully loaded cost of $210,000 per engineer per year. Post-consolidation, the team estimates 25% of those roles are redundant and can be eliminated, and the remaining engineers can be rebalanced toward lower-cost locations, bringing the average fully loaded cost down to $180,000. How much annual savings does consolidation generate, and what is the margin impact on Vertex's $3.2B revenue base?
📊 Case Exhibit
Your answer:
The COO wants to model the savings from consolidating the four acquired engineering teams into a unified organization. Currently the four acquired entities have a combined 480 engineers at an average fully loaded cost of $210,000 per engineer per year. Post-consolidation, the team estimates 25% of those roles are redundant and can be eliminated, and the remaining engineers can be rebalanced toward lower-cost locations, bringing the average fully loaded cost down to $180,000. How much annual savings does consolidation generate, and what is the margin impact on Vertex's $3.2B revenue base?
📊 Case Exhibit
