Refreshing a Long-term Services Relationship



A utility company’s twelve-year-old managed services agreement had become stale. Services required modernization and innovation and automation were lacking. The company was undergoing significant change with programs underway to adopt digital and agile products and practices. Obligations and scope had lost clarity over time, creating uncertainty and mistrust. The old agreement had not kept pace with the change and needed a complete refresh.

Time became critical as the existing agreement was close to expiring. At the same time, the company was building a new agile operating model that required unspecified future changes to services and scope and needed help quickly developing contemporary requirements, establishing a strong commercial foothold and creating more operational agility. 
Imagining IT Differently

Imagining IT Differently

ISG developed a sourcing strategy that enabled the company to separate bundles of services and gain flexibility. This made it easier to change the scope and volumes to facilitate transformation to a new DevOps operating model.

We used the ISG FutureSource™ methodology to quickly perform a sole-source transaction with the incumbent supplier. ISG service templates formed the basis of the transaction, while company staff worked collaboratively with ISG and the service provider to develop detailed requirements.

ISG took care to provide contractual flexibility that would facilitate shifting away from the incumbent provider to adopt DevOps where it made sense.

Future Made Possible

  • Both parties now have greater clarity as to the scope of services. The new agreement includes contemporary services that will evolve with technology changes. New services include AI, increased automation and chatbots, which will significantly improve productivity and user experience.
  • Automation and self-service capabilities will improve productivity for both the company and provider, and refreshed service levels are more relevant and measurable.
    The company saved 25 percent and can now be invested in additional digital programs.
  • The company increased flexibility within a major contract that will facilitate its transformation to a new operating model.