Financial Services

Multi Sourcing – Case Study

In a multi-vendor outsourcing environment a key function is that of the Service Integrator and Management (SIAM), as it acts to uphold the integrity of the IT services throughout their lifecycles and ensures positive interrelationship between the suppliers. The balance is achieved by allowing the suppliers to deliver the services using their shared services and processes whilst providing the overall governance and compliance monitors and checks to make the services effective. Too little governance results in SLA deterioration and potential delayed implementations, whilst too much results in “man for man marking”, take on of process management rather than compliance thus increasing overhead in the SIAM function causing confusion and extra cost. If the SIAM is retained in-house then there needs to be expert Strategic Knowledge retained such that the suppliers can be challenged to develop services relevant to the client and new suppliers can be added to the model as new delivery models emerge. The SIAM becomes the most critical part of the multi-source environment.

 

CIO Plus utilises Nexthink, an IT Operations Analytics (ITOA) software product, to obtain a client side perspective of the quality of the services being consumed across the IT infrastructure. This often provides a stark contrast to the traditional measures (and SLAs) that these services are judged by which are always stated from a provision point of view. With Nexthink, CIO Plus is able to generate invaluable information and views on the state/quality of the IT infrastructure and services and the ways, frequencies and success with which end users are consuming these services. This generates significant cost savings and efficiencies in the tendering, management and re-tendering of IT services.

 

CIO Plus also deploys Nexthink for Technology Service Desks allowing them to become pro-active as well as reactive, to reduce incidents by 35%, resolve problems 60% faster and reduce costs in transformation projects (that touch endpoint devices, i.e. most projects) by around 20%.

 

CIO PLUS experience in a FTSE 50 company

 

A major finance company had outsourced its IT to a number of vendors, but the services were not improving and costs were not reducing at the expected rate, whilst the retained organisation was growing. For example, in change implementation projects, client project managers were being hired to manage the suppliers’ project managers rather than “trust” the suppliers to deliver and manage by exception.

Our role in the Finance Company client:
 
A major part of the role was redesigning the organisation, as part of the overall company transformation. We led the design of a new Operating Model and established an ITILv3 aligned organisation, embedding a SIAM approach: 
 
  • Introduced Service strategy and design
  • De-layered the organisation to bring the business and delivery much closer
  • Removed duplication of activities (delivery silo’s and overlap with supplier activity)
  • Introduced a Continuous Service Improvement function and process
  • Greater emphasis on Root Cause Analysis and service analytics
  • Tidied the model and moved more work to the service providers
  • Re-engineered the Supplier Management function to bring balance to the relationship management aspect and be less focused on purely commercial T&C management
 

We were responsible for the relationships with the IT service providers with contracts in excess of £150m per annum:

 

  • Introduced new KPI’s to measure the underlying health of the services to augment the existing SLAs

  • Identified cost savings of £30m per annum on a single contract and initiated a programme to realise the benefits

  • Implemented a change freeze on all none standard changes and re-designed the service catalogue to eliminate the majority of none standard activity (realised £6m p.a. savings) and a £2m claim for rebate in 2013

  • Programme sponsor for the RFP to re-let the Network and telecommunications service (c£25m per annum)

  • Senior stakeholder management within the client and suppliers

  • Encouraged dialogue between the suppliers to work together for the benefit of the client which resulted in agreeing to move a service from the telecoms provider to the Data Centre services provider

"CIO Plus certainly knew their stuff and we appreciated the excellent work that they carried out for us."

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