Major Outsourced Service Contract Review African Bank

Client Challenge

The client had outsourced an Application Management Service with annual spend of c£10m. Service delivery had been challenging, however the parties were a good fit and there was an intention on both sides to improve. There was a question mark over the capability of the supplier to deliver on third-party contracts. IP transfer was also an issue, with key personnel transferred to the new service provider and with retention periods coming to an end, there were concerns as to the overall value and the total cost of ownership (TCO) of the service.

What We Did

  • Re-baselined the commercials to drive transparency, benchmark rates and commercial models (moving T&M to more effective models) and mechanisms (including volume rebates) and expected efficiencies from automation
  • Provided ‘right-sourcing’ guidance around the scope of retained / outsourced services to ensure best fit model
  • Reviewed end-to-end service design Target Operating Model in line with ‘right-sizing’
  • Reviewed governance model for more effective vendor management
  • Developed three year technology roadmaps, linked to core banking platform business transformation plan

Outcome & Results

Service Model / IT Delivery TOM provided

Provided Governance model to drive significant improvements across vendor performance, contract management and project delivery management

Commercials review provided visibility to deliver up to 45% cost reductions from current run rate

Holistic risk review and mitigation strategy developed

Provided Transformation Roadmap prioritisation review