Cost & Run Optimization

Cost Assessment and Benchmarking Advisory

As IT and business leaders in a rapidly changing technology and skills landscape, we are all too familiar with the challenge of balancing cost and budget constraints with pressures to further transformation efforts and improve service delivery, speed, and user experience.

A key aspect of managing this challenge lies in identifying the opportunities to reduce run costs and fund growth and transformation efforts.

Comprehensive Data Analysis

WGroup's benchmarking advisory capability houses deep financial modeling and analysis expertise to help clients understand their true cost of service delivery—whether retained or outsourced—and how this cost compares to the market.

We benchmark costs across internal service delivery and vendor-contract pricing based on our proprietary database of retained cost assessments and sourcing advisory engagements. And we have the distinction of being the only benchmarker to staff highly tenured industry advisors on every engagement, as opposed to inexperienced spreadsheet analysts housed in research back offices.

COMPREHENSIVE DATA ANALYSIS
Comprehensive Data Analysis

WGroup Metric Database

Our robust database of accurate and actionable data comes from hundreds of client engagements. The data is organized in processable components and consists of processes, key metrics, service descriptions, and SLAs.

WGroup Contract Database

Our contract database consists of software, hardware, and services vendors in the market. It also includes market pricing and discount levels, request for information (RFI) and request for proposal (RFP) responses, as well as differentiation, capabilities, and references.

WGroup Optimization Strategies

Our optimization strategies consist of automation best practices, application portfolio rationalization methodologies, organization, and operating model frameworks, cloud migration approaches, and global sourcing strategies.

External Research

In addition to our discovery process and proprietary database, our findings are augmented with statistical intelligence from established sources.

Client Data

Our client database includes performance, processes, budgets, actuals and invoices, service contracts, and transformation plans from our previous engagements.

WGroup’s Expanded Benchmarking Methodology

Our benchmarking models are flexible to account for the uniqueness and practicalities inherent in every business. Each one is crafted from the ground up to give you visibility of the actual cost of services, not just a budget fly-over. They are designed to address what-if scenarios around changes in service profiles and the corresponding impact on cost structures.

There are six key considerations in our methodology:

  1. Adjusted for Volume and Quality
    Normalized comparisons that factor differences in service quality, responsiveness, and consumption levels.
  2. Service Inclusions and Exclusions
    Normalized comparisons that take into account the exact work elements that are in-scope.
  3. Inclusive of Financial and Technology Parameters
    Cost of capital, depreciation, lease vs. buy, volume purchase agreements, the timing of the acquisition, the life cycle of equipment, and the currency of technology.
  4. Fully Burden Total Service Costs with Management
    We conduct a broader Total Cost for Service Analysis that includes management, governance, and uniqueness in individuals and teams.
  5. Data Validated by Experience
    Data validation supplemented with interviews. Other firms delegate benchmarking to the least experienced consultants who may not have the background to challenge the validity or completeness of data received by a client.
  6. Action-Oriented Findings
    Too often, benchmarks only indicate high/low costs. We provide actionable results with each assessment.


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Maximize cost savings for your future transformation

Discover how to reduce costs by up to 60% with benchmarking

Featured Expert

Featured Expert - Sarthak Brahma

Sarthak Brahma

Managing Principal
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Sarthak is a seasoned executive with deep expertise in IT and business process transformation mandates, end-to-end sourcing programs, and outsourced contract optimization. Read More

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