Helping A Global Energy Company Save €237m Through a Range Of Cost Optimisation Strategies

Wednesday 3rd October, 2018

Client Challenge

With competition and customer retention an ever-increasing challenge for global energy companies, the client recognised the underlying IT services and costs needed to reflect their shrinking market share and needed to maintain agility and cost competitiveness.

Approach

Coeus were engaged to support the identification and execution of a series of cost optimisation approaches, ranging from internal operating model efficiencies, architectural optimisation and sourcing arrangements.

The initial review led to four key cost optimisation workstreams:

New operating model – reflecting the need to support leaner services in a more agile way.

Network sourcing – competitive tender of network infrastructure services, resulting in greater flexibility with significantly reduced costs.

Infrastructure sourcing – the renegotiation of data centre, end user compute, and service desk contract with the incumbent supplier – identifying mutually beneficial projects to reduce both parties’ costs and implement more modern services.

Redefined infrastructure architecture – new architecture strategy not only eliminated the technology debt that had built up, but identified an optimised approach to cloud and data centre hosting.

Results

The project was delivered on time and delivered €237m of benefits, through the four key initiatives:

• €49m through optimised data centre and cloud strategy

• €90m through renegotiated infrastructure agreement

• €92m through new network services agreement

 

In addition to the commercial benefit, the client has recognised the follow benefits from the programme:

• Customer stratification and improved benefits to the business

• Operational Stability – Designed a plan with operational stability at its heart

• Business Strategy – Supported the businesses in their strategy

• Flexibility – Enabled flexibility into the contracts which would help support the objectives above

 

Read our latest Playbook, The Sustainable Approach To IT Cost Optimisation' to understand more about delivering sustainable IT cost optimisation and reduction.