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Success Story - Determining the Value of Outsourcing |
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Client:
High Tech Manufacturer |
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Project:
Outsourcing IT Services |
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Situation: |
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A decision to outsource
the IT infrastructure and associated management processes had been made in
an attempt to significantly reduce costs and improve the professionalism of
IT. A year later, serious questions were raised by line management as to
whether either objective was being met. Criticisms that costs had
significantly increased as a result of outsourcing, while service had
deteriorated, caused management of both the client and outsourcer to seek a
third party assessment of the value of the outsourcing contract. |
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Approach |
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A data collection
template was prepared to collect cost of equipment, software, personnel and
asset value before and after outsourcing. The template was distributed to
manufacturing sites around the world, who were asked to
assemble the data needed to complete the template prior to the arrival of
the assessment team. Once on site, the assessment team validated all
collected data, performed analysis and presented results to local
management. After data validation was complete, the
assessment team assembled all site data into a summary report for
presentation to senior client and outsourcing management. |
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Results |
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As a result of the
summary presentation, service deficiencies and omissions by the outsourcer
were corrected and certain contract provisions renegotiated. The result was
a significant improvement in service levels and a multi-million dollar
annual cost savings by the client. |
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To see details about the services
provided in this engagement, click on the button below: |
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Deriving
Value from Contracting and Outsourcing |
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