A recent engagement with a large financial services firm realized multiple benefits, both financial and non-financial.
Opportunity
The new business faced immediate practical challenges: a transition services agreement (TSA) to be delivered, a data center to exit (lease expiry), a legacy applications technology estate and growing complexity in terms of ensuring secure and compliant infrastructure services.
Imagining IT Differently
ISG conducted a current-state assessment of the company's technology estate (including applications and infrastructure), assessing base costs, operating model, process maturity, and skills and capabilities. We proposed a comprehensive sourcing strategy to establish up a future IT organization that is based on an outsourced model.
We developed a future-state vision to take advantage of new and emerging technologies (including cloud adoption) and leveraged the scale and expertise of external service providers.
We ran an agile, collaborative sourcing process using ISG FutureSource™ with Tier 1 service providers taking the company 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 organization with the functions and roles to effectively manage the to-be outsourced environment and realize 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.
Future Made Possible
- Business case – The company achieved 22% savings over a 5-year period.
- Data center exit – The company was able to migrate over 750 applications from its current data centers to new facilities and the cloud (Azure and Oracle), which was a huge driver of flexibility and savings.
- Target architecture and TOM – We developed a retained organization that is aligned with the desired future states and infrastructure hosting options (including cloud) over a 1-, 3- and 5-year period, along with associated target operating model and retained organization designs.
- Agility – Whereas traditional approaches don’t offer buyers any insights into cultural fit, appetite and chemistry, ISG FutureSource™ collaboration and alignment sessions (CAS) with gave our financial services company 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 and infrastructure of the life business from the acquired GI business.
