The Winchester Services Group

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Success Story - Determining the Value of Outsourcing

   

 

Client:  High Tech Manufacturer  
Project:  Outsourcing IT Services
   
   
   
  Situation:   
     
  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.
   
  Approach
   
  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.
   
  Results
   
  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.

 

To see details about the services provided in this engagement, click on the button below:
  Deriving Value from Contracting and Outsourcing

 

 

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