Strategic Review

Client Overview

ExcelSource was asked to review our client’s IT & Operations Departments with a view of defining the rights service delivery model for the future. Our client, a considerable UK-based retail finance organisation had nearly 2/3 of its staff based in these 2 departments.

Challenge

The company had already gone through some business transformation activity, with one site closure and some peripheral restructure activity. Our project needed to be carried out whilst the organisation was continuing to progress with its changes. One of which was a 2nd site closure. There was however, a perception that with the right sourcing strategy, it could accelerate the transformation already being progressed.

Solution

ExcelSource carried out a detailed financial cost analysis of the 2 department in question. Furthermore a business risk, organisational and role reviews were carried out. Different sourcing options were contrasted for the client comparing the status quo with outsourcing, JV, managed and captive options. The outcome was a recommendation to change the operating model to outsource IT; with some differences in approach between IT Infrastructure and Software Development. Also our client was to create a captive entity for the Operations Department in a low-cost location. A location assessment was prepared and suitable sourcing locations were identified. Senior leaders in our client visited some of the strategic locations identified. Our recommendations were presented and accepted at board level.

Benefit

The business case identified that a cost improvement of some >£7m p.a. was achievable from our recommendations. Our client is presently planning the changes required in their organisation.