Sourcing Strategy Continues a Winning Trajectory

A revamped IT sourcing strategy reduces costs and risk, boosting service agility and quality.



A building society, a financial institution owned by its members as a mutual organization, had undergone a series of successful transformations that increased its profits and customer base. The client asked ISG to rework the society’s IT sourcing strategy to keep the momentum going.
Imagining IT Differently

Imagining IT Differently

ISG drew up a three-step approach. By collating the client’s various software development framework services into market-aligned bundles, we determined the optimal go-to-market approach for each bundle. Then we helped the client implement a sourcing strategy through a series of competitive processes that leveraged the expertise of leading service providers.

Future Made Possible

  • The client realized savings of £200 million in GBP over five years.
  • The new delivery model reduced reliance on high-cost contractors, diverted more work to strategic external partners and realized significant IT service synergies through improved interfaces in the software lifecycle.
  • The commercial models were designed to drive desired behaviors and select best-of-breed service providers.
  • Service transitions were based on payment milestones and incorporated robust acceptance criteria and penalties for service providers associated with delays or failures.