ISG helps a financial services company structure sourcing agreements to meet corporate objectives.
Opportunity
Our global financial services client had recently merged and was facing a potential annual IT infrastructure spend in excess of US$1.1 billion. It needed to shift to an enterprise shared-services model so internal resources could focus on core business and strategic initiatives.
Imagining IT Differently
ISG conducted an initial assessment and market review that was the client’s first comprehensive review of the IT landscape. The results identified major savings and transformation initiatives. ISG then conducted both the initial and expanded RFPs and managed the resulting sourcing agreements for functions including mainframe, distributed computing, network, customer care and cross services.
Future Made Possible
- Service provider cost savings estimates of up to 15 percent
- Approximately 4,000 personnel and contractors successfully transitioned to the service provider;
- Value leakage prevented through diligence in service management and governance;
- Initial year savings targets realized and most transformation risk transferred to the service provider.
"Having been a principal in two large mega outsourcing deals during my career, there were many lessons learned. The most important was realizing that service providers are well equipped to manage you through their preferred process of deal structuring. It is very important to take control and ensure alignment with business objectives. Working with the ISG team led to a successful bidding and selection outcomes for my firm."
— Managing Director, Financial Services Company
