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Pharmaceutical Company IT Outsourcing Facilitation
Background
Due to fast-paced growth, a California-based pharmaceutical company sought to outsource their IT infrastructure and end-user services to a service provider that could not only satisfy stringent FDA regulatory requirements, but also could adapt the environment to the anticipated business growth. The planned outsourcing included data center operations, UNIX and Intel server support, network monitoring, SAP basis administration, DBA services, Web services, and remote engineering support for servers and end users at various North American sites. The W Group was chosen to develop the business case, create the RFP, and facilitate the service provider selection process.
Approach
The W Group established a financial model to identify the baseline costs for the services provided by internal IT groups, documented the existing IT processes, and identified key success factors for the project. This was accomplished by experienced consultants leveraging The W Group’s market data, performing a fact-based analysis, and sharing best practices knowledge.
Once the base case was developed, The W Group initiated a pre-screening process to assist the client with identifying service providers to be invited to participate in the RFP process.
The W Group developed a comprehensive RFP with input from the client’s technical team, and then managed the solution and RFP response phases. The selection process required gathering tailored evaluation criteria to assist the client with their decision to narrow the candidates down to two service providers.
The W Group managed the due-diligence process with the two providers and advised the client on the final selection.
A global infrastructure services provider was selected as the client’s strategic partner. The W Group aided with contract development and negotiation. The W Group also assisted senior management with a finalized business case for board approval.
Finally, The W Group, with the client and the service provider, designed the governance processes and structure that would be needed following the transition of services.
Results
The W Group utilized efficient methodology to assist with selecting a service provider as the strategic partner, beginning with eight providers in the pre-screening phase and resulting in six receiving the RFP. The W Group’s knowledge base, including market pricing, expertise in provider landscape, and experience in FDA regulatory requirements, was instrumental in the client’s outsourcing initiative.
The relationship established with the strategic partner resulted in a projected cost reduction of 10% over seven years.
The client is currently transitioning the services to the service provider’s data center and team.
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