INTRODUCTION:
Our client had an expensive, legacy-oriented IT support workforce that was obstructing the CIO from responding pro-actively to business requests for new technology solutions. Across Application Services, IT Infrastructure and the IT Helpdesk, the CIO was seeking strategic cost savings, in addition to overall service optimization. Capco applied their Smartsourcing approach which assesses function-value-location alignment to determine if roles should be conducted on-site, offshore or flexed. This output was then stress tested under different implementation scenarios to produce an optimized transformation plan that allows the client to maximize benefits, while controlling implementation and operational risk.
WHY NOW?
Under the current environment, financial institutions are using re-entry planning as an opportunity to audit location strategies to positively impact long-term productivity and achieve cost savings.
HOW WE DID IT:
Capco deployed an experienced and motivated IT outsourcing team who:
- Undertook a far-reaching technology transformation review that presented a menu of potential run rate options accommodating the client’s penchant for risk
- Worked jointly with our client to construct a uniquely tailored Smartsourcing Transition Plan that validated feasibility from a client and Capco perspective
- Executed the Smartsourcing Transition Plan via a multi-year service contract that derived a manged team approach which allows the client to remain in delivery control at all times, yet generates substantial quantifiable savings from day 1
- Produced detailed knowledge acquisition plans, encompassing tailored shadowing and reverse shadowing. This enabled resource transitions in condensed timescales to drastically reduce on-site costs
- Worked seamlessly with the CIO and his CTO’s from within Operations and Technology, Equities, Fixed Income, Risk, Investment Banking and Market Data to optimize skillsets and ensure service flexibility
- Established an account dedicated offshore IT support capability that has subsequently been leveraged to drive change within an ever-increasing number of client projects and global business activities
WHAT WE DELIVERED:
Through the implementation of Capco’s Smartsourcing model, the client has been able to:
- Show immediate cost savings of between 15% - 30% via adjusted monthly invoices
- Refresh and re-invigorate a costly workforce with a cross-trained, fungible team better equipped to support an ever-expanding infrastructure and application portfolio
- Offer enhanced levels of support to the business by adopting a fully flexible workforce approach, that offers client friendly solutions such as re-alignment of original offshoring targets and 2 for 1 resource swaps, which have allowed greater management control of where and when resources are deployed
- Better manage attrition and improve the efficiency associated with IT staff recruitment, which is now guaranteed, or financial recompense is payable by Capco
- Achieve complete service transparency between Capco & the client via KPIs and predetermined SLAs to take full advantage of lower facilities rates and access to a significantly reduced cost labor market
- Establish a long-standing, strategic partnership, through the successful delivery of the Smartsourcing model. This has served as the foundation to further deals and joint organizational growth over the past 6+ years
