A recent engagement with a large Financial Services firm realized multiple benefits, both financial and non-financial.
The separation of its General Insurance business as a result of an acquisition was the catalyst for an unprecedented strategic challenge for our Financial Services client. A new operating model had to be designed and created to be fit for the future, including a requirement to reduce the cost base by more than 20%, and delivery of increasing member value through faster digital channels.
The new business faced immediate practical challenges: a Transition Services Agreement (TSA) to be delivered, a data centre to exit (lease expiry), a legacy Applications technology estate and growing complexity in terms of ensuring secure and compliant infrastructure services.
ISG Engagement & Solution
- ISG conducted a current state assessment of the client’s technology estate (apps and infra), including base costs, operating model, process maturity, skills & capabilities and proposed a comprehensive Sourcing Strategy to establish up a future IT organisation that is based on an outsourced model.
- We developed a future state vision to take advantage of new/emerging technologies (including cloud adoption) and leveraged the scale and expertise of external service providers.
- We ran an agile, collaborative sourcing process (FutureSource™) with Tier 1 Service Providers taking the client from strategy through to contract execution within 6 months.
- As Sourcing Agreements cannot exist in isolation, we also designed a Target Operating Model and the future retained organisation with the functions and roles to effectively manage the To-Be outsourced environment and realise benefits.
- We also built a comprehensive Business Case, provided support and advice to the CIO in preparing and presenting the business case for Board approval.
- Business Case – 22% savings over a 5-year period
- Data Centre exit – Migration of 750+ Applications from current Data Centres to new facilities and Cloud (Azure & Oracle) which was a huge driver of flexibility and savings
- Target Architecture and TOM: We developed a retained organisation that is aligned with “future states” and infrastructure hosting options (including cloud) over a 1, 3 and 5 year period, along with associated Target Operating Model and retained organisation designs
- Agility – Whereas traditional approaches don’t offer buyers any insights into cultural fit, appetite and chemistry, ISG FutureSource™ Collaboration & Alignment Sessions (CAS) with gave our client a very early and clear indication of the above, and key differentiation between a set of capable Service Providers
- Separation and self-sustenance – ISG’s approach enabled separation of Applications & Infrastructure of the Life business from the acquired GI business