ISG helps a major Australian federal agency increase flexibility, achieve digital goals and reduce costs through smaller focused agreements and a new multi-vendor operating model.
Opportunity
A large Australian agency had three old, monolithic agreements managing the majority of their IT infrastructure. Restructuring was required to enable contemporary services under more flexible contract arrangements. The opportunity involved enabling key stakeholders and leaders to understand modern contract structures and how they can enable modern agile and digital services.
ISG was engaged to analyze the current state, identify service gaps and opportunities to improve. Commonwealth procurement rules had changed materially since the previous contracts were created, mandating smaller agreements with reduced contract terms. As a result, a fresh perspective was required to improve governance, service operations and integration as well as enable DevOps, optimize cloud, and reduce overall spend.
Imagining IT Differently
The program impacted the entire IT
landscape. Multiple stakeholders were engaged to build a complete analysis of
the current state including a detailed cost analysis. ISG performed a market
test with large private sector firms that helped the client refresh its
knowledge of contemporary services and available technologies. enabling an
understanding of the opportunities and trends for the client stakeholders.
ISG’s benchmarking services informed the business case.
Our global networks and research allowed the agency to visualize the
possibilities. The sourcing strategy included insourcing/outsourcing analysis
and was developed in consideration of the required operating model, and the
need to govern significantly more vendors.
Future Made Possible
- The sourcing strategy was well received by the agency and the market. It has now become a template for other agencies when considering their own objectives.
- A coherent, well planned sourcing program enabled the agency to effectively coordinate the procurement of 8 contracts that were based on contemporary technology and processes in a controlled, time-staged manner.
- The agency could now prepare for working in a more complex, multi-vendor environment with significant changes in the ways of working.
- Each individual procurement achieved a range of competitive responses and value for money.
- Significant savings were achieved, and the agency was well-positioned to manage its new multi-vendor environment.
