OUTSOURCING REDUCES COSTS WHILE MAINTAINING SERVICE LEVELS.
Declining sales and profitability plagued a Fortune 100 automobile company client that needed to achieve significant savings in IT without compromising functionality and service levels. The company brought in Capto's team to explore the situation and make recommendations on a number of outsourcing options—including whether to outsource all IT functions or only select areas.
THE SYNAPTIC SHIFT
After conducting functional, economic, and business analyses, the Capto team proposed outsourcing the data center, telecommunications, and help desk functions to the firm’s current computer hardware vendor while keeping the application development, maintenance, and database administration staff in-house because of their strategic value.
Members of the Capto team negotiated the outsourcing agreement, developed a transition plan, performed the human resources changeover of the outsourced staff, and set up a governance process for the outsourcing relationship. When the inevitable transition bumps affected service levels, Capto worked with the company and the vendor to establish and then refine the ground rules that would govern the relationship for its duration.
- Our recommendations led to a five-year outsourcing agreement with the vendor
- The outsourcing decision delivered tens of millions of dollars in savings to the company over the duration of the relationship, helping to restore growth and profitability