Reducing IT Costs By £30M PA Through Transformation And Sourcing Programme

Thursday 28 June, 2018

Client Challenge

The client, a global consumer products company, was faced with the need to significantly reduce their IT run costs and embarked upon an IS transformation programme to identify and execute the cost reduction measures.

Coeus were engaged to lead this programme and several key roles within it.

Approach

The team helped the client to identify opportunities and formulate a programme of activities to realise the cost savings required to meet the business demand.

The largest opportunity was with the global infrastructure outsource contract, which was coming up for renewal and, therefore, represented an opportunity to apply commercial leverage to achieve the stated business demands. Coeus led an RFP process for these services, which led to the subsequent decision to award the services to another supplier.

Coeus led the contract negotiations, helping to develop the negotiation strategy and facilitation of the negotiation meetings themselves. Coeus, working in conjunction with the client’s external legal team, also managed the drafting process.

During the negotiations Coeus were also tasked with the transition and transformation planning. This then led to the client requesting Coeus retains its role in the transition itself and to manage the programme through to execution.

Coeus provided the overall transformation director role, as well as key roles such as applications transition lead and data centre transition lead. The overall programme saw the transition of service desk, end user computing, data centres, application development and maintenance to new suppliers and the re-negotiation of the telecoms contact with the incumbent.

Coeus produced the documented sourcing strategy, negotiation strategy / plan and business case for sourcing options. We developed the RFP and draft contract schedules.

Results

Overall the programme was successfully implemented, delivering the £30m per annum cost savings expected.

Coeus brought expertise to coach the client team around the risks and opportunities associated with this complex deal and a robust negotiation strategy that aided the successful outcome.

Experienced and proven programme delivery capabilities saw the successful transition of services to new suppliers within the allotted timescale of 9 months and on-budget – all against the backdrop of zero unplanned downtime to the business.

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Read the 'Sustainable Approach To IT Cost Optimisation' Playbook