Introduction:

This case study outlines our role in helping a leading UK financial services provider to transition to a Service Integration and Management (SIAM)/multi-vendor outsourcing model.

Our focus was to help the client rapidly simplify considerations and restore momentum to the program which had already stalled at the design stage.

The case study also highlights the value we provide as a catalyst in quickly resolving situations where inputs from multiple external advisors conflict to the extent the client isn’t confident in how best to proceed.

The Client's Challenge:

The client was progressing with an ambitious agenda to transform its IT function and solve long-standing issues with their incumbent outsourcing providers. 

This included building out its retained IT management layer and the transition of all intra-group and external service arrangements to a multi-vendor specialist model on a tower-by-tower basis.

However, having already solicited RFI input from the majority of leading outsourcing and specialist tower providers, a combination of factors had effectively stalled the program.

Those factors included (a) conflicting advice from multiple advisors complicating the requirement; (b) a significantly higher volume and complexity of inputs from prospective providers and (c) a seeming lack of interest from some providers for the first tower they wished to transition, which was the network tower.

Our Approach:

Urgently needing more emphatic progress and improvement, the client sought our extensive IT and network outsourcing expertise to help quickly simplify considerations and restore momentum to the program.

Our key actions included:

• Working closely with the client’s executives and cross-functional teams to devise an accelerated approach that would deliver the CIO, CTO and Transformation Director’s vision for the services

• Designing and leading rapid actions to develop the template full contract for all towers and develop the network tower RFP incorporating that

• Supporting target state design activities, using the contract development action to take charge of driving the support of advisors, lawyers and internal teams

• Analysing the situation, spending and requirements analysis including assessing current contracts and all advisor and RFI input to that point

• Validating of cross-functional requirements, decision criteria and the evaluation process

• Coaching and validation on best practices, target governance and the relevant requirements of the client’s target SIAM layer

• Structuring the implementation roadmap to incentivise faster transition and transformation

• Expediting business case development, cost and synergy improvement

• Documenting and facilitating approval of all aspects of the template contract and RFP

• Rapid RFP, contract, and diligence preparation and management including the drafting and update of all documentation through all iterations in the process

• Enhanced qualification support for providers to give them a clearer view of requirements, were able to build executive connections and could more confidently ‘put their best foot forward’

• Enhanced referencing and diligence support for the client to provide clearer indicators of risks

• With the client’s external lawyers, facilitating contract negotiations and executable agreements with down-selected parties to closure

• Providing board papers and updates, including diligence reports, in support of the client’s board considerations, as to key stakeholders and committees of the parent organisation

• Strategic sourcing and project management of the decision, selection and all pre-contract actions

• Providing a comprehensive handover to the operational teams on signature

The Result:

The outcomes were:

• Successful recovery of the program, with the release of the initial network RFP and full contract for the initial set of services delivered to market within a month

• Significant improvements in service quality, cost and risk for the network tower

• Reduced advisor and legal fees given the more efficient use of their time and the consequent rationalisation of the number of advisors being used

• Reduced switching costs and cleaner transition, while securing a robust, regulatory-compliant contract

• A more economically viable integration, contract and third-party management template for all subsequent tower deals

Tags:

#FinancialServices, #SIAM, #MultiVendor, #CostReduction, #Transformation, #Sourcing, #Contracting, #Negotiation