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Global Electronic Test Equipment Manufacturer Transformational Outsourcing
Background
Our client, a multinational high-tech firm, adopted an updated business strategy requiring a significant refocusing of IT efforts. The company had multiple data centers supporting a variety of platforms, and the largest data center had to be relocated due to the sale of the facility. In addition, their applications portfolio supporting key business processes was a mix of packages and customized applications, many of which were old and unsupported. Some selective outsourcing was already in place, and the client wanted to consider outsourcing the entire IT operation to effect transformation.
Approach
The W Group led a large client team comprised of representatives from technology, human resources, finance, and legal through the sourcing strategy process.
A thorough review of the existing applications portfolio and business requirements was conducted, leading to a roadmap toward a new applications portfolio.
A comprehensive cost model was developed to identify costs by service towers to facilitate understanding and allow comparison with the costs of established IT service providers.
Information was collected to accurately model the size and scope of the services.
A comprehensive RFP was developed both for the infrastructure rationalization and the applications portfolio transformation.
Results
The client established a full-scope outsourcing agreement with an offshore provider.
Cost savings identified from the infrastructure rationalization would be reinvested in the applications portfolio transformation.
The applications portfolio transformation will lead to lower support costs over the long term.
Cost certainty was improved for the transformation projects.
The information provided allowed the client to view their transformation projects as business investments rather than IT expenditures.
The new system allowed IT to directly link to and support the revised business strategy and targets.
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