Success Stories: Technology

When financial services institutions come to us with their challenges, they expect us to cut through complexity and add genuine value. We respond with effective solutions delivered by financial services professionals who are distinguished experts in their fields. Our clients recognize and value the Capco difference – front-line experience, distinctive insights, and a total commitment to success.

Case 01

German Bank

Leading international bank seeks help simplifying systems inventory

Located in major financial centers around the world, this leading German banking and financial services company offers financial products and services in Europe, the Americas, Asia-Pacific and emerging markets. Its offerings cover wealth management, retail banking, fund management, corporate finance, risk management and derivatives.

Confronting challenges
To reduce costs, the investment bank wanted to simplify its architecture landscape by retiring old systems and consolidating the remaining core platforms. Capco was engaged to lead an assessment to determine the application rationalization business case and to initiate a program to deliver these benefits.

The Capco team used Capco’s Application Rationalization assessment approach, delivery method and tools on this engagement. Capco’s Application Rationalization assessment approach is to develop a consolidated inventory of current applications, identify potential systems for retirement and determine the potential size of the simplification benefit case.

The Capco team began by capturing key attributes of current systems (i.e., user numbers, incident numbers, application fate), confirming primary IT ownership and building a mapping of each application to the client’s functional model. This was based on pre-existing architecture documentation and a series of workshops held with key management. The team then built an application current-state landscape model using Capco’s Edge tool, and then used this tool to drive the identification of gaps in the application to functional model mapping and to support workshops to confirm whether the function/system should be retired, outsourced or kept in-house as a strategic application.

The resulting consolidated application catalog and current-state architecture landscape mapped each system to its function within Capco’s Edge tool. The catalog allowed the analysis of system functionality, the identification of clusters of systems that shared the same function, and the illustration of the current set of systems that could migrate onto a smaller set of common platforms. Leveraging the Capco Application Rationalization method, the team also developed and piloted an end-to-end IT process to create business cases for system retirement and track approved business cases through to implementation and closure. The process allowed our client to have confidence that the planned benefits would be delivered by the simplication program.

Key benefits

  • Rapidly identified the scale of the retirement opportunities within the current application landscape and developed strategies to exploit those opportunities
  • Confirmed relationship between organization and application, which enabled clear operational responsibility for driving the decommissioning and realizing the savings
Case 02

Government-Sponsored Organization

Capco develops cost-estimation framework for national organization’s multimillion-dollar IT projects

This government-sponsored national organization offers programs and services to help families secure credit for home mortgages. The enterprise works closely with a federal regulator to ensure liquidity, stability and affordability in the U.S. housing and mortgage markets.

Confronting challenges
In charge of more than 250 IT projects per year at an estimated average cost of $2 million per project, this government-sponsored enterprise faced large cost overruns. Its system development life cycle (SDLC) required no formal work effort estimation, increasing the company’s exposure to delivery risk and reducing management’s ability to make more informed decisions and course corrections when necessary.

Capco was engaged to create a tailored cost-estimation methodology to improve delivery precision, work effort estimates and resource forecasting. We helped the organization execute sustainable estimation activities across different project profiles to reduce delivery risk without sacrificing speed to market and strategic business focus. Our cost-estimation framework also helped improve management’s visibility into project execution and enable more timely and informed decisions before, during and after project execution, including the true cost of each initiative.

Working with the company’s existing project management capabilities, Capco developed a tailored cost-estimation framework that helped the organization achieve within 10 percent accuracy the costs for more than 70 percent of its IT project portfolio. Accurate forecasting helped the enterprise reduce its estimated operating budget by 13 percent, saving $65 million.

Key benefits

  • Enabled delivery teams to systematically estimate work effort, resourcing requirements and total project costs
  • Created consistent, repeatable and predictable estimating methodology aligned with the client’s existing SDLC preferences, including traditional waterfall and agile techniques
  • Developed a historical project estimate repository to help facilitate future calibration of the estimating methodology and analogous estimation of projects with similar scope, size and complexity
  • Designed training material that allowed the company to roll out the cost-estimation framework on its own
  • Provided senior management with greater transparency into scoping assumptions, estimating factors, sizing and budgets
Case 03

National Government-Sponsored Enterprise

Capco designs IT organizational strategy road map for government-sponsored enterprise

This government-sponsored enterprise helps people secure credit for home mortgages through its programs and services. The organization works closely with a federal regulator to ensure liquidity, stability and affordability in the U.S. housing and mortgage markets.

Confronting challenges
The client’s initial IT organizational structure was siloed with little cross-functional integration and a lack of enterprise standards. Its application development process lacked governance elements such as business need alignment, quality controls and risk control criteria, which negatively affected delivery quality and efficiency and increased the severity and frequency of operational incidents.

The organization engaged Capco to develop an IT organizational strategy road map to align application development teams with future IT initiatives. We met with key business technology team leaders to plan Centers of Expertise and document critical initiatives of the future-state technology organization. Our team designed an IT strategy road map that visually outlined the technology organization’s process from initial plans to the desired future state.

We developed executive-level communications for the CIO to discuss the road map with other executives as well as more than 1,500 employees through town hall events. We also facilitated discussions with key client and technical leads to develop a high-level integrated view of the organizational road map and key priorities. To help the organization achieve the intended objectives of its future IT state, we identified the benefits and risks of specific initiatives.

Key benefits

  • Increased visibility throughout the enterprise of the status of consolidated organizational transformation projects
  • Coordinated ownership to increase project quality and compliance and coordinated efforts to drive speed and long-term costs savings
  • Created awareness to calibrate expected delivery dates based on interdepartmental dependencies