Transportation Case Study

CLIENTS: Transportation

 

SERVICE PROVIDED: Outsourcing

 

Our client had received numerous high profile executive visits and attestations of impressive savings if the IT function was to be outsourced. Many questions remained unanswered but the temptation of an early “prize” was too large to ignore.

Our Work

We were retained to develop a business case for such a major transition. A small team of senior consultants was dispatched to assemble the facts into an actionable business plan.

Our team developed the following artifacts:

  • Extensive scope of work definitions
  • Service level definitions
  • Short list of capable potential vendors
  • Core competency profile
  • RFP
  • Potential services contract and
  • Transition plan.

Most importantly, we developed a detailed budget of transition costs and ongoing operating costs along with a risk profile of the key challenges of such a venture.

Three potential vendors were invited to a controlled bidding process with a structured financial model for their bids. Confidentiality of the process was tightly controlled. In parallel with this process, staff sessions were held to answer key concerns and share information on the process and the experiences of others under the guidance of one of our change management experts.

These findings were presented to the executive team in an interactive forum that provided a consensus on next steps.

Outcomes

While the assessment proved clearly that the touted cost savings were not likely achievable, the long term viability demonstrated by the core competency assessment indicated a more modest and highly structured approach to a limited amount of outsourcing of some elements of the IT function.

The staff were happy that their value was recognized and no key people were lost. IT management were given latitude to develop ongoing plans and budgets for service and growth.