A large Spanish bank wanted to better understand the ADM rates and resource mix being deployed on certain projects.
Opportunity
The Spanish bank was conducting a broad-based review of application development and maintenance (ADM) rates for services being provided in order to drive greater efficiency (and savings), in relation to the rates themselves, the structure of the ADM rate-cards and the actual resource deployment were in scope for review and refinement.
Imagining IT Differently
- ISG conducted an assessment of current ADM rates, across multiple service lines.
- We compared the results against what we typically see in the market (via a carefully selected reference group) to identify gaps and opportunities for improvement via the identification of target rates.
- ISG also provided a set of market-conformed role descriptions for the ADM services to enable like for like comparison.
- Resource pyramid assessment – ISG additionally reviewed 10 actual statements of work (SOWs) for consultancy services to assess the mix of resources actually being deployed vs our view of best practice.
Future Made Possible
- Standardized role descriptions – ISG helped the bank achieve greater consistency and transparency via the implementation of standardized ADM role descriptions and tiers which could be achieved via smarter sourcing.
- Target rates– ISG enabled the bank to determine the set of target rates for each grade and role.
- Resource pyramid assessment – ISG identified situations where the service provider may have been deploying an over-senior team of consultants to burn through the committed spend quicker than was necessary.
- Additional efficiency opportunities – ISG provided additional recommendations relating to other ways in which the bank could drive further efficiencies (for example in the way ADM projects were being requested, approved and subsequently audited and reviewed).
