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$25m Cost Reduction for Tier 2 Global Bank

 

Client Challenge

Our client was a Tier 2 Global Bank with a presence in 13 countries across the world and around 42,000 employees. As part of a contract review, the client asked TORI to review onshore and offshore application support and development services from a major Indian services vendor. This involved the support of over 150 applications by circa 1,000 resources. One year into the contract the client was concerned about the quality of the service delivery and the perceived value for money.

 

What we did

The review focused on the following key areas;

  • A deep-dive review of support and project pricing, invoice comparison and a benchmark exercise
  • A review of the vendor’s on and offshore support capability, including processes, knowledge management and productivity plans
  • A review of the vendor’s on and offshore development capability, including SDLC processes, agile approaches and delivery quality
  • The overall service model including client capabilities
  • A deep-dive review of three key projects

The output from the review included;

  • Recommendations on how the support and development costs could be reduced with supporting evidence
  • Recommendations on changing the support model, including in-sourcing key functions
  • Recommendations on changing the end-to-end development project delivery approach to improve quality
  • Recommendations on changes required with the current contract

 

The Result

  • Off the back of the recommendations made in the review, activities were put in to motion to progress towards the projected cost savings of circa 50% over a four-year period including operating model benefits.
  • TORI drove negotiations with the vendor, resulting in the end result of $25 million in contractual savings being identified over the life of the contract
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