A recent ISG engagement with a large Swiss bank helped refine the company's ADM sourcing strategy.
The Swiss bank wanted to conduct an assessment of existing sourcing practices across technology to achieve multiple outcomes:
- Benchmark the rates being paid,
- Understand what the optimal framework for such services should be, and
- By Line of Business (LOB), select a panel of firms to deliver technology services, based on the above assessment.
Geographical scope included UK, Switzerland, USA, Singapore and Hong Kong.
Imagining IT Differently
- ISG conducted an assessment of current technology spend frameworks, including costs, commercial models and grades/tiers against our world-renowned rates database.
- We compared the results against what we typically see in the market to identify gaps and opportunities for improvement.
- ISG also recommended a selection of new and alternative firms for consideration by the bank.
- We then supported an request for information (RFI) sourcing process to determine the optimal set of firms (for each LOB) to select for each preferred panel based on commercial approach and rates.
Future Made Possible
- Standardized grades and tiers – ISG helped the bank create standard tiers and grades for technology services to drive consistency and alignment, including for example whether or when to allow premium day rates for premium skills.
- Target Rates– ISG enabled the bank to determine the set of target rates for each grade in each geography.
- Negotiation strategy to ensure the identified opportunities could be realized.
- Preferred panels – ISG enabled the bank to create panels of preferred technology firms by category and Line of Business which is contributing to solution creativity and choice, whilst not detracting from competitive tension.