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Leading Financial Services Firm |
Fortune 100
Financial Services Industry
Suppliers: Accenture in the Philippines;
Satyam in India; CSC in the U.S.
Scope of service: Our client had made
significant investments in global sourcing, but had difficulty reaching
financial return as a result of poor transition and governance. Several
divisions had been successful, but there was no coordinated governance effort
that addressed the culture and business issues of the 4 business units. They
turned to neoIT to maximize the financial impact of their global sourcing
approach.
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Background
Our client is a leader in investment banking, financial services for consumers
and businesses, financial transaction processing, asset and wealth management
and private equity.
Our client's Global Sourcing Air Traffic Control Unit (ATC) was created in 2003
to act as the unifying body for global sourcing across all business units. The
ATC was organized to track and report on all cross border process migrations,
including in-country migrations with regulatory impact. The unit is comprised
of representatives from legal, compliance, OTS (office of thrift supervision),
real estate, strategic sourcing and tax.
Business Challenge
To improve control and maximize savings opportunities, our client had been
sourcing to lower cost centers in Ireland, Philippines and India. To date they
had successfully managed 1 captive center and numerous relationships with
global suppliers. Yet, across the enterprise, they lacked standardization of
sourcing practices, policies, standards and procedures.
Our client was large and fragmented and consisted of multiple divisions and
stakeholders each with distinct objectives, cultures and levels of
profitability. The governance model that was to be developed needed to consider
and seamlessly integrate 6 very different work streams. The client's aggressive
timeline for migration of a large number of resources added to the complexity
of the engagement.
They formed the Air Traffic Control Unit (ATC) as the cross-functional team
that would bring unity to the company's global sourcing strategy. Our client
also asked neoIT to help the ATC redefine its transition and governance
strategy to support existing business lines and to deliver quantifiable
bottom-line results.
SolutionneoIT advisors began the work
with the client by conducting an analysis of the current offshore governance
structure in order to develop an IT governance Model for a firm wide global
sourcing program. Key elements of neoIT's strategy for the client included:
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Initial offshore knowledge and expertise support on various governance models. |
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Develop, validate and syndicate IT Governance Model for global sourcing
program. |
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Work as an integral member of a project team with 6 work streams to co-ordinate
efforts, provide input and integrate deliverables within project timelines. |
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neoIT consultants, working collaboratively with the ATC and a variety of
internal teams to architect a governance solution that incorporated a firm wide
Global Sourcing Program.
The engagement included Discovery, Architecture, Design, Implementation and
Solution Maintenance of the new Global Sourcing Program. With the new program
in place, our client is able to meet stringent requirements for an IT
environment that can scale, support current and future operations, and meet
regulatory requirements for the preservation and accessibility of key company
data
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ResultsAs a result of neoIT's involvement
in with the ATC initiative, our client has been able to improve its governance
structure with resources appointed for execution according to the framework.
They now have a firm-wide tracking of all migrations and standardized reporting
of execution status. The program has increased the speed of line of business
(LoB) execution by providing fast track access to required resources and
standardized migration processes. Additionally, the new initiative has enabled
linkage of LoB demand to supply (e.g. captive offshore centers).
Our client has also uncovered some additional data that will help improve their
sourcing objectives over time, including: |
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There is a significant line of business demand for outsourcing and offshoring.
The question is not "if", but "what, when and how" should we globalize. |
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Strong vendor maturity in Call Center and Corporate processes exists, but the
vendor offerings for vertical specific processes lack maturity |
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High visibility into LOB demand is critical for capacity planning of a
cross-enterprise captive solution |
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The following functions are critical to engage within the Governance structure: |
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Real Estate: significant real estate cost implications to migrations
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Strategic Vendor Sourcing for both application development and BPO vendors
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Establish the right vendor partnerships and understand capabilities.
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Insist on Master Service Agreements, and create an environment for Competitive
Pricing.
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Increased Speed of Execution.
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AMP
AXA
Bell South
Cardinal Health
Cendant
Chevron
Citigroup
D.B. Zwirn
DuPont
FTVentures
Gateway
Hartford Life
HCA
Hewitt Associates
JPMorgan Chase
Liberata
Menlo Worldwide
Mercury
Nomura
PPM Capital
Pyxis
Siemens
Sony Pictures
Sprint
Stanford University
Towers Perrin
Trustmark Insurance
TXU
Verisign
Visa
Warner Brothers
Wells Fargo Foothill
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For more information about
how your company can benefit from working with neoIT, please contact us. |
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