In summary

Brief

Develop a strategy for ICT outsourcing which would optimise ICT spending on enterprise-wide services.

Solution

A detailed and fully costed understanding of current ICT outsourcing arrangements, the options available for future sourcing models, and the recommended option.

Result

A sourcing strategy that attracted universal endorsement and commitment to implement a ‘best source’ model.

In detail

The bank required a roadmap for the future model of its ICT outsourcing as it approached the end of a 10-year outsourcing agreement. It established a project to determine a new sourcing strategy and to develop a roadmap for its implementation.

The scope covered a number of technology and service towers, namely mainframe and midrange systems, service desk, desktop, applications service, telecommunications and enterprise-wide services. The annual spend on ICT was more than $1 billion.

Frame consultants delivered a very detailed and fully costed understanding of the bank’s current ICT outsourcing arrangements, the options available for future sourcing models, and the recommended option. A strategy was developed for each of the technology and service towers, comprising a strategic sourcing plan and detailed financial analysis.

Throughout the duration of the project, consensus and agreement was reached progressively across the diverse business units and at all levels of the organisation. This resulted in a sourcing strategy that attracted universal endorsement and commitment.

The recommended ‘best source’ model was implemented by the bank.

Consultants with the required domain knowledge and experience filled the roles of Project Director and Project Manager/Consultant.

Taking a collaborative engagement approach, they used a strategic planning methodology which they developed to:

  • review the current situation
  • identify the business drivers
  • undertake a needs analysis
  • conduct an environmental scan
  • determine the decision criteria
  • generate options for the sourcing models
  • select the best source model
  • define the strategy
  • prepare the implementation roadmap.

Each stakeholder group nominated representatives tomeet regularly over the duration of the process, provide input into the strategy’s development, and validate key assumptions and recommendations.

Senior executives were also regularly briefed and engaged throughout each of the phases, and then consultants presented the strategy to the board.

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